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Alternative Dispute Resolving Mechanism in E-Commerce

Alternative Dispute Resolving Mechanism in E-Commerce


The emergence of the Internet has changed the World into one single globally connected village wherein the market has been transformed and people are more connected to each other also there is a high rise in economic activities. People are buying new and unique things cross-borders more frequently thus the economy of the countries is increasing. E-commerce involves the conduct of different businesses on the internet globally and this is growing rapidly thus it opens up a variety of employment in the industry. With the global approach kept in mind, it further opens up the market and removes the trade barriers making it a revolutionized market.[1] However, there are various challenges in resolving such disputes where various countries and their laws are involved and wherein the transactions are done on such autonomous online platforms, making it difficult to know the governance leading to customers’ lack of confidence and future investments.

Dispute Resolving Mechanism

Rapid growth in e-commerce has also increased the conflict-related concerns for businesses and consumers, mostly conflicts related to the law for trade and transactions in different countries. Various disputes arise such as delay or non-delivery of goods or services, refunding problems, etc. Thus to improve this there must be an effective dispute-resolving mechanism adopted that will not only have expertise in the field but also have an effective and speedy trial. Thus, the Alternative Dispute Resolution Mechanism is one of the best ways to tackle this problem. ADR will have less formal and less time-consuming processes and it will include arbitration, mediation, and negotiations. This process has expanded significantly lately and is also less costly considering the fees of counsel of the parties and the institutions.[2] Thus ADR works as an attractive alternative dispute resolution when it comes to e-commerce and the business involved in that. It is also considered as a more equitable approach to judgment for the parties involved and treating them equally and fairly, it further maintains the decency and the bond between the parties as it builds long-term relationships based on trust and Confidentiality. Confidentiality also plays one of the most attractive parts when it comes to ADR. When the dispute is related to a security system or any such technical problem then it is the best possible way to resolve such conflicts. However, there are a few negative impacts also involved mainly such as cultural differences and the extent of biasedness in the decision. Nowadays there is one more dispute-resolving mechanism emerging rapidly which is ODR when disputes related to transactions arise on or due to the internet then this innovative and imperative e-commerce dispute-resolving mechanism comes into the picture.[3] Thus to increase the scope of the ODR process there is a board including representatives from the international institutions working in the ODR fiethat ld could bring in some changes and make coordinations across the world for the smooth functioning of the same, Creating ODR awareness should also be considered and there should be undertakings signed by the national governments and big business communities for such initiatives. There are a few essentials in the ODR process that have to be included fundamental fairness principle inclusion, transparency, adversarial principle, legality, liberty, representation, etc. However, ADR can never completely replace the traditional litigation process due to the lack of precedents available due to its private nature. Therefore it will always remain as an alternative dispute resolution which includes speed, and cost efficiency.[4]


[1] Heiskanen, Veijo. "Dispute Resolution in International Electronic Commerce." J. Int'l Arb. 16 (1999): 29.

[2] Katsh, Ethan, Janet Rifkin, and Alan Gaitenby. "E-commerce, E-disputes, and E-dispute Resolution: In the Shadow of eBay Law." Ohio St. J. on Disp. Resol. 15 (1999): 705.

[3] Schneider, Michael E., and Christopher Kuner. "Dispute resolution in international electronic commerce." J. Int'l Arb. 14 (1997): 5.

[4] Hashim, Sahibzadah Uzair, Dispute Resolution Mechanisms in Electronic Commerce(Special Reference to Online Dispute Resolution Mechanism) (June 2005). 

  • The article discusses how the internet has turned the world into a globally connected village, leading to a surge in cross-border transactions.
  • The article highlights the need for effective dispute resolution in e-commerce, advocating for Alternative Dispute Resolution (ADR).
  • It introduces Online Dispute Resolution (ODR) as an emerging mechanism for resolving e-commerce disputes related to online transactions.

BY : Vaishnavi Rastogi

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