what is ecodir? e lectronic co nsumer di spute r esolution b2c research project

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ADR in Spain and the European Union Madrid, 11 – 12 December, 2006

Copyright © G Brian Hutchinson, School of Law UCD. All Rights Reserved.

Online Dispute Resolution and the Future of ADR: Lessons Learned from ECODIRThe Electronic Consumer Dispute Resolution Project

Brian Hutchinson Vice Dean, School of LawUniversity College DublinIreland

Project Supervisor, ECODIR

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What is ECODIR? Electronic Consumer Dispute Resolution B2C Research Project Supported by EU & Irish Government www.ecodir.org

Why? Consumer Confidence in e-commerce Access to justice for consumers

Could it work?

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EU Commission

DG SANCO

Department of Enterprise, Trade and Employment

Arbitration of International Disputes Ltd

Centre de Recherches Informatique et Droit, Namur, Belgium

Centre dEtudes sur la Cooperation Juridique Internationale, CNRS, Paris, France

Centre De Recherche en Droit Publique, University of Montreal, Canada

CITA, Univ. Notre Dame de la Paix, Belgium

Institut fur Informations-Telekommunikations-und Medienrecht, Meunster, Germany

Centre d’Estudis de Dret i Informatica, de Balears, Spain

GlobalSign, Belgium

CMAP – Centre de Mediation et d’Arbitrage de Paris, France

OnlineResolution, USA

National Arbitration Forum, USA

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Methodology

SOCIO-ECONOMIC STUDY

LEGAL STUDY

TECHNICAL STUDY

PILOT STUDY

Survey of Offline ADR Survey of Offline ADR and Consumers Groupsand Consumers Groups

Confidence and Confidence and ConfidentialityConfidentialityEfficiencyEfficiencyCostCostEffectivenessEffectivenessLanguageLanguageFairness and TransparencyFairness and Transparency

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Methodology


LEGAL STUDY

TECHNICAL STUDY

PILOT STUDY

EC Recommendations EC Recommendations 98/257/EC and 98/257/EC and 2001/310/EC.2001/310/EC.

Contractual Nature of ADRContractual Nature of ADR–ConsensusConsensus–Mandatory NormsMandatory Norms

Rights-based v.s Interest-Rights-based v.s Interest-based solutionsbased solutions

Enforceability of solutionsEnforceability of solutions

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Methodology


LEGAL STUDY

TECHNICAL STUDY

PILOT STUDY

The ECODIR ProcessThe ECODIR Process

Achieved through Rules and Achieved through Rules and TechnologyTechnology

Adversarial / Legalistic Adversarial / Legalistic Solutions AvoidedSolutions Avoided

Structured NegotiationStructured Negotiation

MediationMediation

RecommendationRecommendation

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Methodology


LEGAL STUDY

TECHNICAL STUDY

PILOT STUDY

Pilot Study – Proof of Concept Pilot Study – Proof of Concept

Oct 2001 – May 2002Oct 2001 – May 2002

Feb 2003 – June 2003 Feb 2003 – June 2003

www.ecodir.orgwww.ecodir.org

Dissemination & Follow -upDissemination & Follow -up

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www.ecodir.org

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Indications Levels of Activity

Case Numbers Low to begin with Analysis of 51 Cases Filed to 28 June, 2003 Some test cases 23 appear not test From within this 23 were 2 settlements

Level not surprising, Not unlike levels for offline consumer adr; But does indicate that there is little automatic/unsolicited

demand. More surprising that settlements were reached by parties having no

special or prior knowledge of ECODIR

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Locations of the parties:

11%

16%

4%

13%

7%2%2%9%

13%

4%

2%

2%15%

Belgium

Germany

Peru

US

UK

Netherlands

Luxembourg

Italy

Ireland

France

Spain

Hong Kong

Unknown

50% +/- involving 50% +/- involving cross border cross border disputesdisputes

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13%

27%

13%4%4%

18%

17%4%

None

Products andServices

Financial

CommercialPractice

Privacy

Products andServices +CommercialPractice

Products andServices + Financial

Products andServices +CommercialPractice + Financial

Nature of the Dispute

A high proportion concerned A high proportion concerned non-deliverynon-delivery of goods or of goods or services services

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Reactions Consumer Reps Consulted

Eg: Director of Consumer Affairs; European Consumer Centre Dublin; Consumer Associations of Ireland and abroad

Benefits perceived by Consumers: Transparency and control of process Ease of access and use

Business Associations Consulted Eg: Internet Retailers Association; Small and Medium Sized Enterprises;

Direct Marketing Federation: Benefits perceived by Businesses

Potential for Increased efficiency in customer relations management Potential for Added value for customers Potential “Savings and increased business”

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Impediments and Challenges

Lack of cooperation by the second party… Little

Awareness Trust Of Ecodir, of ODR, of ADR!

ODR as a tool for advancing ADR? Pan European Solutions? Cross Sectoral

Solutions?

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Issues and Perspectives

How to get businesses “to play”?How to get businesses “to play”?Prove Added Value!Prove Added Value!

Present ODR as an element of complaints handling and Present ODR as an element of complaints handling and customer relations managementcustomer relations management

Present consumer demand for ODRPresent consumer demand for ODR

Present regulatory need for ODRPresent regulatory need for ODR

Prove efficiency and savings to business processesProve efficiency and savings to business processes

Prove increased customer loyalty / activityProve increased customer loyalty / activity

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Improving Efficiency

Prepopulated References Unique Identifiers Timeline Monitoring Data analysis – more complete data

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Issues and Perspectives

How to sustain ODR services?How to sustain ODR services? Case generated revenue unlikely to sustain in short term. Licence right to display “brand” (trustmark) and use process to businesses.

Necessitates a trust mark business modelProliferation of trustmarks

Co-funding between State, Business and Consumer bodies? Specialised focus particular markets / customers

Narrows accessCombination of the above

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Possibilities for Government / Official Involvement

Promoting awareness of ADR and ODR – including using ADR & ODR Cybercourts using online processes? Cyber Appeals from ODR? Accreditation of ODR providers? Establishing clearing houses networks? Funding and Co-Funding? Requiring mandatory use of ODR in some licensing processes? “Kehl Initiatives”

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Future Steps for Ecodir

End-user pilot project involving consumer centre and business associations.

EEJ-NET

Co-operation in E-Government initiatives in Ireland and Europe

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Thank You!

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Brian HutchinsonBrian Hutchinson, ,

Tel: +353 1 716 8756 / 8754Tel: +353 1 716 8756 / 8754 Fax:+353 1 269 2655 Fax:+353 1 269 2655

E-mail: E-mail: [email protected] / / [email protected]

School of Law, University College Dublin, Belfield, Dublin 4, IrelandSchool of Law, University College Dublin, Belfield, Dublin 4, Ireland

For further information please contact:

what is ecodir? e lectronic co nsumer di spute r esolution b2c research project

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