Alternative Dispute Resolution for Consumer Transactions in the Borderless Online Marketplace

Workshop

17) What should be the primary focus and scope of the public workshop on alternative dispute resolution for online consumer transactions?

First, the workshop should bring a public spotlight onto several issues:

• The need for online consumer redress options
• The effectiveness of online dispute resolution in meeting the need for consumer redress
• The availability of online ADR resources online
• The advantages of online ADR vs. other alternatives (notably litigation)

The workshop should partially serve as a media event, both to educate consumers about the availability and effectiveness of online dispute resolution resources and to build critical mass in the e-business community as to the importance of third party dispute resolution options.

Second, the workshop should begin the consensus building process between businesses and consumer groups on the issue of consumer redress and online ADR. E-business representatives and consumer representatives should present on the challenges they face in dealing with disputes in online transactions and the advantages of online resolution.

Third, the issue of standards for online ADR programs should be discussed. What potential for abuse exists in binding vs. non-binding programs? What disclosure should be required to participants up-front? How long should processes take and what should they cost? Beginning the discussion on these items will go a long way in improving the quality of ADR resources online.

Finally, the workshop should discuss the particular challenges of international online dispute resolution, focusing on the efforts of the EU to accredit online ADR companies. A strategy should be developed to collaborate with the EU in setting these standards so that US and European firms can practice on a level playing field.