What is ECODIR? E lectronic Co nsumer Di spute R esolution B2C Research Project

1. Online Dispute Resolution and the Future of ADR:Lessons Learned from ECODIRThe Electronic Consumer Dispute Resolution ProjectBrian HutchinsonVice Dean, School of LawUniversity College DublinIrelandProject Supervisor, ECODIR

2. 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?

3. Centre de Recherches Informatique et Droit, Namur, Belgium EU Commission DG SANCO Centre dEtudes sur la Cooperation Juridique Internationale, CNRS, Paris, France Department of Enterprise, Trade and Employment Centre De Recherche en Droit Publique, University of Montreal, Canada Arbitration of International Disputes Ltd CITA, Univ. Notre Dame de la Paix, Belgium GlobalSign, Belgium Institut fur Informations-Telekommunikations-und Medienrecht, Meunster, Germany CMAP – Centre de Mediation et d’Arbitrage de Paris, France Centre d’Estudis de Dret i Informatica, de Balears, Spain OnlineResolution, USA National Arbitration Forum, USA

4. Methodology Survey of Offline ADR and Consumers Groups • Confidence and Confidentiality • Efficiency • Cost • Effectiveness • Language • Fairness and Transparency SOCIO-ECONOMIC STUDY LEGAL STUDY TECHNICAL STUDY PILOT STUDY

5. Methodology EC Recommendations 98/257/EC and 2001/310/EC. Contractual Nature of ADR • Consensus • Mandatory Norms Rights-based v.s Interest-based solutions Enforceability of solutions SOCIO-ECONOMIC STUDY LEGAL STUDY TECHNICAL STUDY PILOT STUDY

6. Methodology The ECODIR Process Achieved through Rules and Technology Adversarial / Legalistic Solutions Avoided SOCIO-ECONOMIC STUDY LEGAL STUDY Structured Negotiation TECHNICAL STUDY Mediation PILOT STUDY Recommendation

7. Methodology Pilot Study – Proof of Concept Oct 2001 – May 2002 Feb 2003 – June 2003 www.ecodir.org Dissemination & Follow -up SOCIO-ECONOMIC STUDY LEGAL STUDY TECHNICAL STUDY PILOT STUDY

8. www.ecodir.org

12. 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

13. Locations of the parties: 50% +/- involving cross border disputes

14. Nature of the Dispute A high proportion concerned non-deliveryof goods or services

15. 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”

16. 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?

17. Issues and Perspectives How to get businesses “to play”? • Prove Added Value! • Present ODR as an element of complaints handling and customer relations management • Present consumer demand for ODR • Present regulatory need for ODR • Prove efficiency and savings to business processes • Prove increased customer loyalty / activity

18. Improving Efficiency • Prepopulated References • Unique Identifiers • Timeline Monitoring • Data analysis – more complete data

19. Issues and Perspectives 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 model • Proliferation of trustmarks • Co-funding between State, Business and Consumer bodies? • Specialised focus particular markets / customers • Narrows access • Combination of the above

20. 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”

21. 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

22. Thank You!

23. For further information please contact: Brian Hutchinson, Tel: +353 1 716 8756 / 8754 Fax:+353 1 269 2655 E-mail: Brian.Hutchinson@ucd.ie / Brian.Hutchinson@ecodir.org School of Law, University College Dublin, Belfield, Dublin 4, Ireland