Online Dispute Resolution (ODR) originated from the synergy between technology and alternative methods of conflict resolution to settle disputes arising on the Internet. The ODR facilitates the resolution of conflicts through the transformative power of technology, which is incorporated as a great contemporary complement to the model of traditional conflict resolution.
As online and mobile purchases and sales transactions are increasing, disputes between the parties are rising exponentially as well, and institutionalized mechanisms to channel appropriate and efficient solutions provided online are lacking. This situation discourages the development of the online economy, because when consumers face a dispute, the chances of a claim, repair or agreements are complex and inefficient, and above all, they are offline.
ODR methods are introduced as particularly useful to fulfill the emerging needs of conflict resolution in the world of Internet and the new channels and business models that require the utilization of e-commerce, e-business, telework, e-government, mobile e-commerce, among others. The possibility for consumers to access ODR offers perks such as easier, faster and less expensive disputes than resolving them before a court, and thus, impacting positively and encouraging the use e-commerce in the growth and expansion of the digital economy.
Several factors such as availability of time, expenses and other logistic complications could encourage the use of ODR, in an effort to achieve greater efficacy to solve a conflict. These mechanisms in general are presented as a useful tool of easy access and effectiveness to resolve disputes originated in the electronic world. Usually ODR cases have to do with not so great amounts of money, distant parties and issues of moderate complexity, in sum: smaller claims. But it can also be used for more traditional off-line disputes although is not the rule.
It is evident that lawyers and arbitrators, for example, have to adapt to these changing technologies and procedures since technology will continue impacting legal work and procedures. Instead of perceiving technology as an obstacle, attorneys can find opportunities to better serve their clients.
- Many people think that personal meetings and communication is the way to conflict resolution. However, the fact that thousands of disputes are being dealt with and agreed on through virtual means questions this supposition. In some cases, the utilization of virtual tools is completely necessary, like in the cases where a great geographical distance exists between the parts in conflict.
- It is believed that ODR is only appropriate for impersonal conflicts that emerge in the world of internet and that is not appropriate for family or interpersonal conflicts. This has not been proven. Online communication can be even more useful in situations where the parties have temperament problems, or where the history and the nature of the relationship can interfere with the conflict resolution.
- It is also assumed that traditional conflict resolution uses written documents and personal meetings to deal with the conflict. Recently, e-mail and other forms of communication are being used increasingly, such as synchronic and non-synchronic, interactive and non-interactive communication based on text, audio and videoconference.
- Transparency: the programs that support ODR should make available information about all the aspects of the service.
- Independence: it should operate independently of the business interests
- Impartiality: it should operate without any hidden agenda or bias supporting one of the party’s interests.
- Effectiveness: it provides the mechanisms to guarantee the enforcement of ODR outcomes.
- Fairness: it should follow the corresponding process standards to make sure that all parties have equal chances to express their views.
- Accessibility: it should facilitate utilization by consumers.
- Flexibility: it should be able to adapt its procedures to correspond the circumstances of a particular dispute.