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Exploring the Ethical Frontiers of Online Dispute Resolution (ODR) and Online Arbitration (OArb)

Exploring the Ethical Frontiers of Online Dispute Resolution (ODR) and Online Arbitration (OArb)

International commercial arbitration has grown in popularity as a means of settling disagreements between corporate associates around the globe. International arbitration offers several advantages such as secrecy, expediency, unbiased and arbitrary arbitration, and global execution of rulings. To be sure if the opportunity to arbitrate can be delayed, jurisdiction is essential. With the shift from face-to-face communication to relying on mobile and web platforms for everyday tasks, the technological landscape of our lives has considerably altered. Conventional dispute resolution methods appear antiquated as we transition between online and offline environments. Alternative dispute resolution (ADR) and courts have not kept up with other industries regarding technology integration, and many underfunded courts find it difficult to incorporate technology beyond case management updates. In response to the demands of disputants, online dispute resolution, or ODR, has evolved. ODR encompasses technology and computer-mediated communication (CMC) in online and offline negotiation, mediation, arbitration, and other conflict resolution procedures. ADR is being utilized more and more to manage family difficulties, even though it was previously revolutionary for family disputes. Due to this, there are also additional ethical issues, such as the growing application of artificial intelligence (AI).

ADR practitioners who have found value in new technologies have pointed out that they may utilize CMC to increase communication, cooperation, and decision-making without having to spend time and money on in-person sessions. They have witnessed how ODR and more broadly digital communication settings allow us to obtain data, work together, and make choices in ways that were previously impracticable, if not impossible. In the new normal, parents who are divorcing or living apart are working together to create parenting arrangements online, and divorces are becoming more virtual. Given the shift in our lives to an online lifestyle following COVID-19, this is particularly evident. The growth of a "Drive-Thru" society has led to the creation of Online Dispute Resolution (ODR), which leverages the Internet, email, and other information technologies to limit or remove the need for face-to-face discussion. Due to its capacity to cross boundaries and avoid the limitations of other legal procedures that make it less appropriate for e-commerce and international conflicts, ODR has become more and more popular. Nonetheless, the surge in online transactions has intensified customer complaints against businesses situated in remote or unfamiliar areas, impeding their ability to pursue legal recourse.

An ethical way to eliminate barriers to justice is to use technology in alternative dispute resolution (ADR) to cut down on time, travel expenditures, and even the need for legal and ADR practitioner support. However, integrating technology into ADR also raises concerns. This investigates the advantages and moral conundrums associated with alternative dispute resolution (ODR), looking at the use of technology in new forms of arbitration, mediation, and negotiation as well as in systems that involve automated decision-making. It contends that ODR provides enormous potential to boost productivity and open up new channels for remedies, enabling people to settle conflicts swiftly and affordably without having to incur the expenses or inconveniences of travel or time away from work. It is important to pay attention to bound online arbitration (OArb) as a way to quickly and effectively settle customer complaints against online retailers.

Compared to traditional ODR procedures, OArb has more potential to please customers by providing thorough responses regarding the merits of their claims and prompt access to remedies. It also facilitates scheduling and communications in a rapid, flexible, convenient, and frequently more comfortable manner. By providing the liberal venue, immediate appeal from orders adverse to arbitration, appointment of arbitrators in the absence of agreement, limited review of arbitration awards, and treatment of awards as final judgments, the Federal Arbitration Act (FAA) and the Electronic Signature Act (ESign) enhance arbitration enforcement. They also make electronic contracts enforceable to the same extent as paper contracts. Technology will inevitably be used in conflict resolution, and it is critical to update the ethical framework. To maintain ethical performance, ODR best practices and standards must be developed, particularly in light of AI's encroachment into the legal industry. Effective and moral use of technology requires cooperation. ODR ethical norms are promoted in large part by institutions, organizations, and practitioners in the legal and ADR areas. Consumer arbitration now has a new option thanks to online arbitration (OArb), which also makes it more convenient, quick, and affordable. However, legislators need to address the challenges and fairness traps that OArb faces. A well-managed OArb would save businesses money by preventing lawsuits and class actions while giving customers a practical way to make claims.

References 

[1] Larson, David Allen. "Designing and implementing a state court ODR system: from disappointment to celebration." J. Disp. Resol. (2019): 77.

[2] Rule, Colin, Vikki Rogers, and Louis Del Duca. "Designing a Global Consumer Online Dispute Resolution (ODR) System for Cross-Border Small Value-High Volume Claims—OAS Developments." UCC LJ 42 (2010): 221.

[3] Bakhramova, Mokhinur. "ODR (Online Dispute Resolution) System as a Modern Conflict Resolution: Necessity and Significance." European Multidisciplinary Journal of Modern Science 4 (2022): 443-452.

[4] Schmitz, Amy J. "Drive-thru arbitration in the digital age: Empowering consumers through binding ODR." Baylor L. Rev. 62 (2010): 178.

  • ODR and OArb offer efficient and accessible means of conflict resolution, leveraging technology to overcome traditional barriers.
  • Integrating technology into ADR raises ethical concerns, particularly regarding privacy, fairness, and the role of AI in decision-making processes.
  • Effective implementation of ODR requires the development of ethical standards and best practices, necessitating collaboration among legal practitioners, institutions, and policymakers.

BY : Vaishnavi Rastogi

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