Building a global redress system for low-value cross-border disputes

International and Comparative Law Quarterly

Volumn 62, Issue 2, 2013, Pages 407-440

  Cortés, Pablo ^a   De La Rosa, Fernando Esteban ^b  

^a UNIVERSITY OF LEICESTER   (United Kingdom)

^b UNIVERSITY OF GRANADA   (Spain)

Author keywords

Alternative Dispute Resolution; arbitration; consumer redress; Online Dispute Resolution; UNCITRAL

Indexed keywords

EID: 84876184435     PISSN: 00205893     EISSN: 14716895     Source Type: Journal    
DOI: 10.1017/S0020589313000109     Document Type: Article

References (88)

1. T Schultz, 'Private Legal Systems: What Cyberspace Might Teach Legal Theorists' (2007) 10 Yale Journal of Law & Technology 159
2. R Bordone, 'Electronic Online Dispute Resolution: A Systems Approach-Potential, Problems, and a Proposal' (1998) 3 Harvard Negotiation Law Review 175.
3. D Fernández Arroyo, 'Current Approaches towards Harmonisation of Consumer Private International Law in the Americas' (2009) 58 ICLQ 420.
4. Report of UNCITRAL Working Group III (Online Dispute Resolution) on the work of its twenty-second session (Vienna, 13-17 December 2010) A/CN9/716, para 16. cf C Hodges, I Benöhr and N Creutzfeldt-Banda, Consumer ADR in Europe (Civil Justice Systems) (Beck/Hart 2012).
5. See UNCITRAL Report on the work of its twenty-third session (New York, 21 June-9 July 2010).
6. UNCITRAL Working Group III (Online Dispute Resolution) twenty-sixth session (Vienna, 5-9 November 2012). A/CN.9/WG.III/WP.117. The work which has taken place in the various different sessions may be found at . (Hereinafter all websites were accessed 06/03/2013).
7. Art 2 of the draft procedural Rules of the twenty-third session (New York, 23-27 May 2011) A/CN.9/WG.III/WP.10
8. Proposal for a Directive on alternative dispute resolution for consumer disputes (Directive on Consumer ADR) COM(2011) 793 final.
9. Proposal for a Regulation on online dispute resolution for consumer disputes (Regulation on Consumer ODR) COM(2011) 794 final.
10. The documents can be found at: .
11. See eg C Rule, Online Dispute Resolution for Businesses: B2B, E-Commerce, Consumer, Employment, Insurance, and Other Commercial Conflicts (Jossey Bass 2002)
12. J Hörnle, Cross-Border Internet Dispute Resolution (CUP 2009).
13. T Schultz, 'Internet Disputes, Fairness in Arbitration and Transnationalism: A Reply to Julia Hörnle' (2011) 19 International Journal of Law and Information Technology 156-7.
14. This article mainly considers the results of the twenty-fifth session of UNCITRAL Work Group III (21-25 May 2012, New York) Online Dispute Resolution for Cross-border Electronic Commerce Transactions: Draft Procedural Rules. Hereinafter Draft Rules. A/CN.9/WG.III/WP.112. Available at .
15. F Esteban de la Rosa, La Protección de los Consumidores en el Mercado Interior Europeo, (Comares 2003) 44-70
16. H Micklitz and N Reich, 'Crónica de una Muerte Anunciada: The Commission Proposal for a Directive on Consumer Rights' (2009) 46 CMLRev 471.
17. This restriction is pending the approval by the European Commission, the Parliament and Council during the first quarter of 2013. See also P Cortés, 'Improving the EU's Proposals for Extra-judicial Consumer Redress' (10 May 2012) Computers and Law available at
18. See eg art 41 Spanish Royal Decree 231/200 that regulates the consumer arbitration system. cf. A. E. Vilalta 'Contratación Transnacional y Acceso a la Justicia: Mecanismos de Resolución Electrónica de Disputas' (2012) 732 Revista Crítica de Derecho Inmobiliario 2067-2149.
19. D Girsberger and D Schramm, 'Cyber-Arbitration' (2002) 3 European Business Organization Law Review 626.
20. Draft Rules art 2 states that "'ODR platform" means one or more than one online dispute resolution platform which is a system for generating, sending, receiving, storing, exchanging or otherwise processing electronic communications used in ODR'.
21. This approach was taken first by SquareTrade and later by eBay and PayPal in order to promote settlement between the disputants. See S Abernethy, 'Building Large-Scale Online Dispute Resolution and Trustmark Systems' in E Katsh and D Choi (eds), Online Dispute Resolution: Technology as the 'Fourth Party (Kluwer 2003).
22. These requirements are similar to those established for the consumer/trader disputes by art 9 of the proposal for a Directive on consumer ADR.
23. Draft Rules art 5(3) and 5(4).
24. Research carried out by the online payment system PayPal found that parties often prefer an expeditious ODR process than a lengthier and more accurate process. A Lodder and J Zeleznikow, Enhanced Dispute Resolution Through the Use of Information Technology (CUP 2010) 21.
25. See eg R Mnookin and L Kornhauser, 'Bargaining in the Shadow of the Law: The Case of Divorce' (1979) 88 YaleLJ 950
26. R Cooter et al, 'Bargaining in the Shadow of the Law: A Testable Model of Strategic Behavior' (1982) 11 Legal Studies 225.
27. It should be noted that instant translation is already offered by several sites free of cost, eg .
28. The Model Law allows this only if the parties' agree (art 12). The Model Law is accessible at .
29. This Rule is in the rules for ODR providers funded by the European Commission: ECODIR. See .
30. Anonymous authors, 'Mandatory Mediation and Summary Jury Trial: Guidelines for Ensuring Fair and Effective Processes' (1990) 103 HarvLRev 1086.
31. Draft Rules art 9.2.
32. Draft Rules art 9.1.
33. Draft Rules art 9.4.
34. See eg A Schmitz, 'Legislating in the Light: Considering Empirical Data in Crafting Arbitration Reforms' (2010) 15 Harvard Negotiation Law Review 194
35. The e-Justice portal is presently preparing an online filing system for the European Small Claims Procedure, which is expected to start running in 2013. See .
36. P. Cortés 'Does the Proposed European Procedure Enhance the Resolution of Small Claims?' (2008) 27 CJQ 83-97.
37. See eg the Spanish consumer arbitration system, where the possibility of equity-based solutions allows the arbitrators to change the onus probandi of the parties.
38. J Hörnle, 'Encouraging Online Dispute Resolution in the EU and Beyond: Keeping Costs Low or Standards High?' Queen Mary School of Law Legal Studies Research Paper No. 122/2012, section 7.
39. P Balboni, Trustmarks in E-Commerce (CUP 2009).
40. C Rule, CEO at MODRIA (and former ODR Director for eBay and PayPal), Presentation on eBay ODR Experience at the 10th International ODR Forum, Chennai, India, 9 February 2011.
41. DE Sorkin, 'Payment Methods for Consumer-to-Consumer Online Transactions' (2001) 35 Akron Law Review 1, 9-10.
42. P Cortés, 'A Comparative Review of Offers to Settle: Would an Emerging Settlement Culture Pave the Way for Their Adoption in Continental Europe?' (2013) 32(1) CJQ 42-67.
43. See eg the proposal made by the USA at the OAS meeting in 2010. See generally Del Duca et al (n 23) 221.
44. http://isisa.ccreditation.imrg.org/User/Pages/WithdrawnWebsites.aspx? pageID=16&pageTemplate=1>.
45. http://www.ombudsmann.at/schlichtung.php/cat/5/aid/17/title/Watchlist
46. European Parliament Study Cross-border Alternative Dispute Resolution in the EU (2011) 40
47. .
48. and .
49. Reports on the main features of the ADR systems in Europe, country by country, are available in C Hodges et al (n 5).
50. V Rogers, Institute of International Commercial Law (Pace Law School) Note on the Resolution Process Designated by the Draft ODR Rules Vienna, 14-18 November 2011.
51. L Fuller, 'The Forms and Limits of Adjudication' (1978) 92 HarvLRev 353
52. L Fuller, 'Mediation: Its Forms and Functions' (1971) 44 CalLRev 305
53. K Winston, 'Introduction to the Revised Edition' in K Winston (ed), The Principles of Social Order: Selected Essays of Lon L. Fuller (Hart 2001).
54. J Adams and R Brownsword, Understanding Contract Law (Thomson 2007) 188 ff.
55. JW Hamilton, 'Pre-Dispute Consumer Arbitration Clauses: Denying Access to Justice?' (2006) 51 McGillLJ 693
56. JM Matthews, 'Consumer Arbitration: Is it Working Now and Will It Work in the Future?' (2005) 79 The Florida Bar Journal 1
57. J Sternlight and E Jensen, 'Using Economic Arbitration to Eliminate Consumer Class Actions: Efficient Business Practice or Unconscionable Abuse?' (2004) 67 Law and Contemporary Problems 75
58. J Sternlight, 'Is Alternative Dispute Resolution Consistent with the Rule of Law' (2006) 56 DePaul Law Review 569
59. J Sternlight, 'In Defense of Mandatory Arbitration (If Imposed on the Company)' (2007) 8 Nevada Law Journal 82
60. K Stewart and J Matthews, 'Online Arbitration of Cross-Border, Business to Consumer Disputes' (2002) 56 UMiamiLRev 1119
61. T Stipanowich, 'The Arbitration Penumbra: Arbitration Law and the Rapidly Changing Landscape of Dispute Resolution' (2007) 8 Nevada Law Journal 427.
62. These clauses would require vendors to take reasonable steps to ensure buyers are sufficiently well informed of the dispute resolution process at the time of entering into transactions. Compliance with the rules provides an additional safeguard since they are designed to ensure a minimum of procedural guarantees when resolving disputes. Furthermore, the accreditation bodies would ensure that ODR providers comply with the rules contained in the model law. See N Horn, 'Arbitraje de Consumo en el Derecho Alemán y Europeo', in F Esteban de la Rosa and G Orozco Pardo, Mediación y Arbitraje de Consumo, una Perspectiva Española, Europea y Comparada (Tirant lo Blanch 2010) 221-33.
63. Recommendation 98/257/EC.
64. See art 24 Royal Decree 231/2008 and art 90.1 Royal Decree Law 1/2007.
65. Art 41 Royal Decree 231/2008. These commentaries take into consideration the situation of the consumer as claimant. Spanish law does not allow the agreement to be used against the consumer, with the exception of the counterclaim.
66. G Kaufmann-Kohler and T Schultz, Online Dispute Resolution: Challenges for Contemporary Justice (Kluwer Law International 2004) 204.
67. Joined Cases Rosalba Alassini and Others v Telecom Italia C-317/08.
68. P Cortés, 'Developing Online Dispute Resolution for Consumers in the EU: A Proposal for the Regulation of Accredited Providers' (2011) 19 International Journal of Law and Information Technology 1-28
69. 103 Rabinovich (n 25) 253.
70. See eg the proposal made by the USA at the OAS meeting in 2010. See generally Del Duca et al (n 23) 221.
71. See database at .
72. See the Commission Recommendations on Consumer ADR 98/257/CE and 2001/310/CE.
73. P Cortés, Online Dispute Resolution for Consumers in the European Union (Routledge 2010) ch. 5.
74. M Conley Tyler, and J Bornstein, 'Accreditation of On-line Dispute Resolution Practitioners' (2006) 23 Conflict Resolution Quarterly 383.
75. See art. 15 of the proposal for a Directive on Consumer ADR.
76. See .
77. See Qualifying Assessment Program at .
78. See The Chartered Institute of Arbitrators at .
79. cf P Cortés, 'The UDRP Reviewed: The Need for a 'Uniform' Policy' (2008) 14 Computer and Telecommunications Law Review 133-9
80. S Donahey, 'The UDRP Model Applied to Online Consumer Transactions' (2003) 20 JIntlArb 475.
81. A Froomkin, 'ICANN Uniform Dispute Resolution Policy, Causes and (Practical) Cures' (2002) 67 BrookLRev 690
82. M Geist, 'Fair.com? An Examination of the Allegations of Systematic Unfairness in the ICANN UDRP' (2002) 27 BrookJntlL 903
83. M Mueller, 'Rough Justice: An Analysis of ICANN's Uniform Dispute Resolution Policy' (2000) Syracuse University Convergence Centre .
84. See generally P Cortés, 'Accredited Online Dispute Resolution Services: Creating European Legal Standards for Ensuring Fair and Effective Processes' (2008) 17 Information and Communications Technology Law 221-37.
85. H Schulte-Nölke, 'EC Law on the Formation of: From Common Frame of Reference to the "Blue Button"' (2007) 3 European Review of Contract Law 332.
86. See G Rühl, 'The Common European Sales Law: 28th Regime, 2nd Regime or 1st Regimen, Maastricht European Private Law Institute, Working Paper No 2012/5, 1-14
87. cf R Brand, 'Analysis and Proposal for Incorporation of Substantive Principles for ODR Claims and Relief into Article 4 of the Draft Procedural Rules' (Note submitted by the Center forInternational Legal Education to UNCITRAL Working Group III twenty-fifth session, New York, 21-25 May 2012).
88. On the requirements of the principle of legal certainty, see AE Pérez Luño, La Seguridad Juridical (Ariel 1994).