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Building a Global Resolution System for Low Dollar / High Volume Cross-Border Transactions

Building a Global Resolution System for Low Dollar / High Volume Cross-Border Transactions. Colin Rule (Director of Online Dispute Resolution, PayPal) Zbynek Loebl (ADR.EU / the Prague Arbitration Center) Vikki Rogers (Institute of International Commercial Law, Pace University).

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Building a Global Resolution System for Low Dollar / High Volume Cross-Border Transactions

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  1. Building a Global Resolution System for Low Dollar / High Volume Cross-Border Transactions Colin Rule (Director of Online Dispute Resolution, PayPal) Zbynek Loebl (ADR.EU / the Prague Arbitration Center) Vikki Rogers (Institute of International Commercial Law, Pace University)

  2. Building a Foundation: First Principles • ODR was created at a 1996 meeting in Washington, DC of NCAIR (the National Commission on Artificial Intelligence Research) • This meeting has the similar promise and potential – probably even more • We are moving closer to the first extrajudicial, global commercial redress system ever created • This system will likely provide the blueprint for the next generation of global justice systems 2020 and beyond 2

  3. How Did We Get Here? • OECD publishes “Guidelines for Consumer Protection in the Context of Electronic Commerce” • FTC/DOC host “Alternative Dispute Resolution for Consumer Transactions in the Borderless Online Marketplace” conference • EEJ-Net • ECODIR • GBDe / Consumers International agreement • Global Trustmark Alliance • UNCITRAL Working Group 3

  4. Structure of This Meeting Day One: Setting a common frame Hearing from experts Legal realities Political processes Regional perspectives Legal/political environment ICANN experience Systems design Regional concerns Stakeholder perspectives Day Two: Small discussion groups Tackle key questions Draft recommendations Get into specifics Design the system Process Standards Roles Enforcement Implementation 4

  5. Supporting Materials • Website: http://odrandconsumers2010.org • Conference documents: • http://novomeeting.com/vancouver.zip • UNCITRAL documents • Provisional Agenda for the Vienna meeting • Secretariat note on work in ODR • ODR Note from the 43rd session • US proposal • OAS documents • Draft model law/cooperative framework • Proposal for Global ODR Standard Setting body • http://novomeeting.com/workingpaper.doc 5

  6. Why we’re here (Vikki’s talk) 6 6

  7. Need to Think Through the Complete System • Procedural Rules • Approval of providers • Substantive Rules • Enforcement Easier More Difficult 7

  8. Key Questions (Zbynek’s Slides) 8 8

  9. Thank You for Being Here • We know you all have busy schedules • You had to spend your own resources to be here • No one is making a penny off of this gathering • We’ve worked hard to ensure this will be a very productive use of your time • This meeting is a first step into something very exciting, and transformative at a global level 9

  10. Appendix

  11. Global Buyer Protection STRAWMAN Central Clearinghouse Buyers and sellers work through their National Administrators to participate in the system. Neutrals are selected from the approved ODR providers. ODRProviders CentralCaseDB Neutral Once a decision is rendered, the appropriate National Administrator is informed of the outcome, and works to ensure the seller abides by the decision. NationalAdministrator NationalAdministrator Seller Buyer

  12. Rome I Regulation – EU Parliament Recital 12 12 • “With reference to consumer contracts, recourse to the courts must be regarded as the last resort.”  • “Legal proceedings, especially where foreign law has to be applied, are expensive and slow. . . .” • “The protection afforded to consumers by conflict-of-laws provisions is largely illusory in view of the small value of most consumer claims and the cost and time consumed by bringing court proceedings.” • “As regards electronic commerce, the conflicts rule should be backed up by easier and more widespread availability of appropriate online alternative dispute resolution (ADR) systems. . . ” • Available at http://www.europarl.europa.eu/meetdocs/2004_2009/documents/dv/juri_oj(2007)1119_romei_am_/juri_oj(2007)1119_romei_am_en.pdf

  13. Rome I Regulation -- Review Clause • Article 27 of Rome I Regulations requires that by 2013 the EC provide special report to the European Parliament on application of the special Rome I rule for consumer contracts. • European Parliament cites need to promote inter alia “ADR in the field of electronic commerce and . . . to review to what extent on-line ADR schemes might be used . . . to increase consumer confidence in electronic commerce and obviate the need for court proceedings” • Special report may be accompanied by proposals to amend the special Rome I rule for consumer contracts. • EU Parliament Final Compromise Amendment 104 Article 23(b) (new), available athttp://www.europarl.europa.eu/meetdocs/2004_2009/documents/dv/juri_oj(2007)1119_romei_am_/juri_oj(2007)1119_romei_am_en.pdf

  14. State ODR Models • In some OAS member states, state-run alternate dispute resolution (ADR) mechanisms for business to consumer disputes are very well developed, offering dispute resolution services for a wide range of consumer disputes. • In Mexico, Concilianet, has been established to provide a government run online dispute resolution platform. The Federal Consumer Protection Law promotes and protects the rights of consumers without distinction based on nationality or other considerations.Available at: http://concilianet.profeco.gob.mx/concilianet/faces/inicio.jsp. • In Chile, a similar online platform has been established. http://www.sernac.cl/tramites/index.php • The US Federal Trade Commission launched www.econsumer.gov to refer consumer cross-border cases to ODR providers

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