Amid the rise in cross-border B2C e-commerce trade, India is taking the lead in setting up a 'global online dispute resolution (ODR) platform' to resolve disagreements in online transactions between businesses and consumers, Consumer Affairs Secretary Rohit Kumar Singh said on Thursday.
He further added that,"The UN has accepted India's proposal and asked us to develop a framework on global online dispute resolution with a focus on resolving cross-border B2C e-commerce disputes,"
The Department of Consumer Affairs organized a Round Table Conference on "Pioneering an ODR (Online Dispute Resolution) Platform for Seamless Cross-Border E-commerce Dispute Resolution”, to have a constructive dialogue between the DoCA and stakeholders to explore issues regarding the resolution of consumer cross-border e-commerce disputes. The key objective of the session is “How to effectively frame a Global ODR Platform for the disposal of consumer e-commerce disputes”.
Welcoming the participants, Secretary DoCA Shri Rohit Kumar Singh said that in the era of digital transformation, where e-commerce platforms and online services have become integral to our daily lives, ensuring a seamless and effective dispute resolution mechanism is paramount. We should make use of the strength of technology that India is offering today. Raising cross-border e-commerce has led to diverse disputes (e.g., payments, deliveries, quality) and given the lack of a clear legal framework and awareness among various stakeholders of avenues for resolving such disputes, ODR can become a convenient and effective solution. Globally, cross-border e-commerce shipments accounted for 22% of total e-com shipments, amounting to USD 3.5 Tn. 26% of the Cross-border proportion of total e-commerce is in India. DoCA is committed to ensuring that our ODR mechanism is not just a legal formality but a dynamic and effective tool for resolving disputes. By strengthening this mechanism, we are laying the foundation for a trustworthy and resilient digital economy consumption ecosystem.
Teressa Moreira, Consumer & Competition Head, UNCTAD, Hugh Stevenson, Dy. Director, Federal Trade Commission USA, Andrew Hadley, Assistant Director Policy & International, United Kingdom Competition Markets Authority, Helena Laurent, Director General, Consumers International, Mr. Yoshihisa Hayakawa, Member of Asia-Pacific Economic Co-operation (APEC), and Colin Rule, CEO, ODR.com USA attended the conference through video conferencing.
Teressa Moreira, Consumer & Competition Head, UNCTAD, congratulated Departments of Consumer Affairs for taking the initiative and offered all the help that UNCTAD can offer for the framing of the platform.
The Members of NCDRC, Presidents of various State Consumer Commissions, Red. Justices, officials of the Department of Legal Affairs, Voluntary Consumer Organizations, ODR platforms, Technology Platforms, Business Organizations, and e-commerce companies attended the conference. And discussed that the creation of a global ODR system provides a consensus solution for high-value, small-value cross-border e-commerce disputes.
There is need to foster trust and confidence in cross-border e-commerce transactions. Framing of the ‘Online Dispute Resolution’ platform through which the consumer cases will be resolved through the ADR i.e. Mediation, Conciliation and Arbitration in the pre-litigation stage.
Discussions on major challenges in framing the global ODR platform like cross-border jurisdictional issue, enforceability of settlement agreements, language, technology supports, privacy & data protection, fees, funding, cost sharing, awareness, training were held.
The discussions laid three key elements for developing a robust cross-border ODR mechanism. First, defining the purview of ODR, scope and users of the ODR platform for cross-border disputes. Second, legal pre-requisites and procedures. Third, Digitization & innovation of the legal processes, using technology to overcome language and literacy barriers.
The platform should include multilingual support through AI Speech Technology i.e. real-time translation, transcription, etc. to redress language barriers. Multicultural Neutral Panels and Algorithm Empowered by Online Dispute Resolution will make understanding of the consumer dispute easier.
The Department of Consumer Affairs looks forward to leveraging the outcomes of this session to foster ongoing collaboration between all the stakeholders. The ideas and insights shared during this event will serve as a foundation for framing of the Global ODR platform.
