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The Scope And Importance Of Online Dispute Resolution (ODR) In E-Commerce


Nandhini Sahithiya C, Christ University


ABSTRACT


Online Dispute Resolution (ODR) has emerged as a vital mechanism for addressing disputes in the rapidly growing e-commerce sector. As digital transactions expand, effective and efficient dispute resolution methods are critical. ODR offers cost-effective and accessible solutions, particularly for international and low-value claims common in e-commerce. It employs techniques like mediation, arbitration, and negotiation via technology, enabling parties to resolve disputes without physically attending court, thus saving time and resources.


ODR addresses a wide range of issues, including contractual disputes, product quality concerns, and consumer protection matters. Unlike traditional litigation, ODR circumvents jurisdictional challenges inherent in international e-commerce, benefiting small and medium enterprises (SMEs) that often lack resources for cross-border legal proceedings. Additionally, ODR enhances consumer trust by providing a reliable mechanism for dispute resolution, encouraging repeat purchases and fostering e-commerce growth.


Despite its benefits, ODR faces challenges such as low awareness among consumers and businesses, data security concerns, and difficulties in enforcing decisions. Many companies prefer resolving conflicts internally, leading to unresolved complaints and dissatisfied customers. Governments and organizations have taken steps to promote ODR, such as the European Union’s ODR Regulation, which ensures fairness and transparency in consumer dispute resolution.


Integrating advanced technologies like artificial intelligence and machine learning into ODR platforms can further enhance efficiency by enabling real- time translation and automated support, overcoming language and procedural barriers. By addressing these challenges and raising awareness, ODR can realize its full potential as a reliable, cost-effective, and accessible solution for managing e-commerce disputes, ultimately fostering a sustainable and trusted digital marketplace.


Keywords: ODR, e-commerce, cross-border disputes, consumer trust, jurisdiction, ADR, digital technologies.



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Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878

Website: www.ijllr.com

Accessibility: Open Access

License: Creative Commons 4.0

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