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The Department of Consumer Affairs (DoCA) coordinated a Round Table Conference titled “Pioneering an Online Dispute Resolution Platform for Seamless Cross-Border E-commerce Dispute Resolution”. It facilitated a discussion between the DoCA and relevant stakeholders on the settlement of consumer cross-border e-commerce disputes. The focus of the session was on establishing a global ODR platform.
According to a press release, the creation of a global ODR system provides a consensus solution for high-value and small-value cross-border e-commerce disputes. There is a need to foster trust and confidence in cross-border e-commerce transactions.
Participants included representatives from the United Nations Conference on Trade and Development, the United States Federal Trade Commission, the United Kingdom Competition Markets Authority, and the Asia-Pacific Economic Co-operation (APEC). Also, members from the National Consumer Disputes Redressal Commission, residents of State Consumer Commissions, and officials from the Department of Legal Affairs. Voluntary consumer organisations, ODR platforms, technology platforms, business organisations, and e-commerce companies also attended the event.
The platform will resolve consumer disputes through Alternative Dispute Resolution (ADR) methods such as mediation, conciliation, and arbitration, all of which occur in the pre-litigation stage.
Participants discussed significant challenges in shaping the global ODR platform, covering topics such as cross-border jurisdictional matters, the enforceability of settlement agreements, language barriers, technological support, privacy and data protection, fee structures, funding, cost-sharing, awareness, and the need for training.
Three fundamental elements for establishing a resilient cross-border ODR mechanism were outlined. First, there’s a need to clearly define the extent to which ODR applies, specifying its scope and the users of the ODR platform for cross-border disputes. Second, it’s essential to address the legal prerequisites and procedural aspects. Lastly, it is crucial to embrace digitisation and innovation in legal processes and use technology to overcome language and literacy barriers.
Participants agreed that the platform should incorporate artificial intelligence (AI) speech technology for multilingual support, enabling real-time translation and transcription to overcome language barriers. Implementing multicultural-neutral panels and algorithm-driven ODR will make understanding customer disputes easier.
Secretary DoCA, Rohit Kumar Singh, said that in the age of digital transformation, where e-commerce platforms and online services have become an indispensable part of daily routines, establishing a smooth and efficient dispute resolution mechanism is of utmost importance. Agencies should make use of the strength of technology that India is offering today.
The surge in cross-border e-commerce has given rise to a variety of disputes, including issues related to payments, deliveries, and product quality. Due to the absence of a well-defined legal framework and a lack of awareness among different stakeholders regarding available avenues for addressing these disputes, ODR is a practical, efficient, and necessary solution.
On a global scale, cross-border e-commerce shipments accounted for 22% of the total e-commerce shipments, with a total value of US$ 3.5 trillion. Notably, India stands out with a 26% share of cross-border transactions as a proportion of its total e-commerce activity.
DoCA is dedicated to ensuring that the ODR mechanism goes beyond being a mere legal formality and transforms into a dynamic and efficient tool for resolving disputes. By fortifying the system, the government is establishing the groundwork for a dependable and robust digital economy consumption ecosystem.
DoCA said that it is eager to apply the results of this session to encourage continued cooperation among all stakeholders. The ideas and insights exchanged during this event will form the basis for the development of the Global ODR platform.
