ODR for Cross-Border E-Commerce Transactions 

Oluwaseyi OniHead of Corporate Governance, Jumia Group

What is E-Commerce?

The buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the Internet.

The purchasing, selling & exchanging of goods and services over the internet through which transactions or terms of sale are performed electronically.

Main Categories of E-Commerce

business-to-business (B2B)- Companies doing business with each other.

business-to-consumer (B2C)- Businesses selling to the general public.

consumer-to-consumer (C2C)- Consumers selling to other consumers.

Features of E-Commerce

Ubiquity- Being everywhere at once. Global Reach- not restricted by geographical

barriers. Universal Standards- To use E-Commerce features,

Individuals, businesses and governments all over the world only use one set of technological, media and Internet standards

Internet Richness- e-Commerce allows for the integration of video, audio, animation, etc. much better than other technologies (billboards, signs, etc.)

Features of E-Commerce (Cont.)

Interactivity- e-Commerce allows consumers to interact with the content.

Information Density- e-Commerce technology reduces information cost and raises the quality of the information. Makes information accurate, inexpensive and plentiful.

Personalization/Customization- Technologies within e-Commerce allow for personalization and customization of marketing messages. The recipient receives messages carefully tailored to their interests and needs.

Problems inherent in E-Commerce Transactions Problems inherent in Ecommerce Transactions

Susceptibility to Fraud Lack of Trust Logistics Infrastructure. Payment systems. Dependence of e-commerce businesses on the

ecosystem.

Customer: Tracking shows delivered but shipment not receivedAmazon: Warmest greetings [...] my name is Thor.Customer: Greetings, Thor. Can I be Odin?Amazon: Odin, Father, How art thy doing on this here fine day?Customer: Thor, my son. Agony raises upon my life.Amazon: This is outrageous! Who dares defy The All Father Odin! What has occurred to cause this agony?Customer: I’m afraid the book I ordered to defeat our enemies has been misplaced. How can we keep Valhalla intact without our sacred book?

AN ACTUAL CONVERSATION BETWEEN AN AMAZON CUSTOMER SERVICE AGENT AND A CUSTOMER

Amazon: This is blasphemy! Wherever this book has been taken to, I shall make it my duty to get it back to you! I fear it is Loki but I dare not blame him for such things. I shall have your fortune returned to you and thereafter we can create a new quest in order to get the book back to you.Customer: Very well my son.

Amazon: Allow me some time to round up my allies and complete this my father.

Customer: Do it for me Thor, but most importantly do it for the mortals whose destiny (and grades) rely on this book.

Amazon: Alas, the treasure has been returned to you. You now need to reinstate your book into your archive so that you may yet receive it soon. I shall have the Valkyrie deliver it to you as fast as their wings can move.Customer: Ok so roleplay aside I have my money back and reorder the book?Amazon: haha yes I have refunded you and you need to reorder the book.Customer: Great!Amazon: Have you placed the orderCustomer: Let me do that … doneAmazon: Okay let me edit it for you [...] That good?

Customer: Wow hooking me up for one day delivery? Sweet!Amazon: Haha yea man gotta get your book asap!Customer: I’ve heard Amazon has great customer service and this just proves it! thanks manAmazon: No problem, is there any other issue or question that I can help you with?Customer: Nah that was it. Really appreciate itAmazon: Anytime bro. Have a great day. Goodbye OdinCustomer: Bye my son.

Resolving Disputes arising from E-Contracts across State Borders The traditional means of resolving disputes is through the

Law Courts. Litigation would however not be suitable in resolving online disputes arising from transactions across borders due to the nature of these transactions.

Litigation by its very nature can be time consuming, expensive and very stressful , and as a result would not be suitable for resolving disputes arising from B2C E-contracts, as most of these disputes are usually over small claims, compared to the cost that would be incurred in litigation.

Alternative Dispute Resolution (ADR) would seem more suitable than litigation in resolving disputes arising out of B2C E-contracts.

Resolving Disputes arising from E-Contracts across State Borders (cont.) ADR is usually preferred to litigation because it is much

faster and cheaper than Litigation, as courts are usually congested with a backlog of cases which usually take years to be determined.

Even though ADR may be more suitable than litigation in dealing with disputes arising from E-Contracts across state borders, it is still not a perfect solution to dealing with these forms of disputes. There are still common problems that would still arise in dealing with disputes of this nature.

A problem which has not been resolved by ADR when dealing with Cross-Border disputes is the choice of law.

Resolving Disputes arising from E-Contracts across State Borders (cont.)

The terms in a B2C E-Contract are usually non-negotiable, and most times, not even read by the buyer, and even where they are, the buyer is more concerned with buying what is being offered by the seller, and usually not concerned with the terms of the contract.

A problem which has also still not been resolved by ADR is that of forum, the country where the dispute would be resolved.

There is also the problem of cultural and linguistic differences which must be taken into account.

What is Online Dispute Resolution(ODR)? Julia Hornle described ODR as -the use of new tools and

techniques (information management tools and communication tools) for dispute resolution.

Online Dispute Resolution (ODR) can be described as dispute resolution over the internet.

ODR incorporates the use of Information Technology and Telecommunication with the different ADR techniques.

There is sometimes a distinction made between dispute resolution proceedings conducted exclusively online and dispute resolution proceedings which are only supported by different elements of ODR.

E-Commerce Disputes in Nigeria

Negotiation in Resolving Disputes.

The Role of the Consumer Protection Commission.

The Electronic Transaction Bill is silent on the adjudication process of disputes.

Brief History of ODR

The birth of ODR dates back to 1996 with the initiation of three pilot projects: The Virtual Magistrate Mediate-net (University of Maryland). Online Ombuds Office(University of

Massachusetts).

ODR Procedures

Online Arbitration Online Mediation Online Negotiation Evaluation Cyber Courts

Essential Elements of ODR Systems

Impartial Neutrals Transparency Confidentiality Privacy Equality in the treatment of Parties.

Legal Requirements which must be met by ODR. Independence and Impartiality Confidentiality and Transparency Fairness Effectiveness

Advantages of ODR

Faster. Cost-Effective. Convenience. Issue of Jurisdiction

Disadvantages of ODR

Impersonal. Confidentiality Concern. Knowledge of ICT is critical. Limited Range of Disputes. Potentially Inaccessible.

Is ODR the Future of Dispute Resolution? Professor Ethan Katsh- “I think the field of ADR is coming to

recognize that the future is ODR. Maybe that’s a bit of an exaggeration, but I think it’s inevitable that ODR technology becomes a part of all dispute resolution practice. It has to be. As I’ve said several times, we have these machines that can do things that skilled arbitrators or mediators have to do. That’s not likely to put arbitrators and mediators out of business and lawyers. It is likely to challenge them because they won’t be able to use simple techniques that might have been useful in the past, or simply to handle very simple disputes that lawyers might have charged for in the past. We’re going to have more and more disputes. How mediators come to terms with this, how the mediation/ADR field comes to terms with this will be pretty interesting.”

Conclusion