Effectiveness of Online Dispute Resolution to Resolve

Internet Disputes

Introduction:
Businesses and transactions are now done online and the world is slowly becoming digital.
Consequently, legal assistance should be provided for Internet transactions. It’s a great way to
resolve online conflicts in the digital age.

When a dispute arises online, the parties most likely want to settle it friendly without going to
court. Since the dispute originated online, it would be good for the parties to have an online
dispute resolution mechanism. The fact that the costs of resolving internet disputes between
parties in different countries can exceed the actual costs of doing business, has led to the
introduction of cross-border e-commerce as an option cost-effective online dispute resolution.
The Online Dispute Resolution (ODR) process has evolved for other Internet-related questions.

Concept of Online Dispute Resolution:

Online dispute resolution (ODR) refers to the use of electronic communications and other
information and communication technology for dispute resolution.1It aims to bring the benefits of
efficiency, accessibility, cost-effectiveness and convenience that technology has brought to many
areas of prevention, redress and justice delivery. Some use cases of ODR include the internal
dispute management systems of businesses, electronic forms of alternative dispute resolution,
and the conduct of online courts. The disputing parties may use different technology during
online dispute resolution. It can be done through the internet with either email or
videoconferencing or any other means of technology that suits the parties involved.2

Online dispute resolution aims to make dispute resolution accessible to a wider audience,
including their geographical area careless. This eliminates the need for physical presence and
reduces barriers to participation. It can be used to resolve a wide range of disputes including e-
commerce disputes, contractual disputes, domain name disputes, online customer complaints,
and more. It is an area that continues to evolve as technology advances and new challenges

1
https://uncitral.un.org/sites/uncitral.un.org/files/media-
documents/uncitral/en/v1700382_english_technical_notes_on_odr.pdf
2
https://www.intechopen.com/chapters/61440
emerge in online dispute resolution. Continuous improvement and innovation are essential to its
effectiveness.

Benefits of Online Dispute Resolution:

1. It is quick and effective.
Online dispute resolution is effective when the parties concerned conduct business over the
Internet. This is because they are familiar with the principles of operating online. It is easier to
develop relationships and actively work toward resolving disputes. Online dispute resolution
involves low cost. If disputes are referred to court for settlement, it will take time due to the
litigation process. Thus, it is better to resolve disputes online.

2. It addresses jurisdictional issues.

In the traditional way of settling disputes by going to court, matters are assigned to courts based
on the jurisdiction where the matter arose or where the subject matter is situated. In this instance
of online dispute, it will be difficult to assign the case to a particular jurisdiction.3 Thus, online
dispute resolution is best for resolving issues arising from internet transactions. This settlement is
fully internet based and not regulated by Rules of Court like the litigation.

3. It is flexible.
If we are talking about flexibility, online dispute resolution is generally a flexible, informal and
creative tool of dispute resolution that is not governed by strict rules of evidence and procedure.
The parties involved in the transaction can decide how, where, and the online means to use to
settle their dispute. Parties do not have to be physically present to resolve their dispute. It is done
over the internet at any time.4

Conclusion:
The United States, China, Brazil and some European Union countries have already adopted ODR
mechanisms by creating their own separate forums to resolve disputes arising from e-commerce
transactions. Millions of disputes have been successfully settled without filing a single case in a
traditional court. It is a proven fact that technology improves with time and technology being the
main component of various ODR methods, it is certain that ODR will come up with new and
more desirable technologies. The ODR mechanism being simple and effective has the potential
to penetrate mainstream dispute resolution systems and its acceptance cannot be questioned. In
the near future, ODR will not only serve as a platform for speedy disposal of cases but also as a
field of employment for thousands of arbitrators or advocates.

3
https://www.jstor.org/stable/23824404
4
https://www.intechopen.com/chapters/61440