1 ALTERNATIVE DISPUTE RESOLUTION OECD CONFERENCE Den Hague 11./12. December 2000 Constanze Picking DaimlerChrysler for GBDe IN E-COMMERCE

2 Global Business Dialogue on E- Commerce (GBDe) a worldwide, CEO-driven effort to develop policies that promote Global Electronic Commerce for the benefit of Business and Consumers everywhere with today 72 Members.

3 DEFINITIONS ALTERNATIVE DISPUTE RESOLUTION IN E-COMMERCE: Methods of resolving disputes related to obligations resulting from contracts concluded electronically between professional sellers of goods or providers of services and final consumers (B2C), operated by impartial bodies other than courts of law

4 ALTERNATIVE DISPUTE RESOLUTION Developed by business to provide: * speedier dispute * more informed resolution * more cost-effective by impartial experts

5 GBDe WORK DURING 2000 Brussels Seminar, March FTC, Consumers Union and HP Workshop, February and May Asia-Pacific Region Workshops GBDe Expert Meeting with the European Commission, June ADR/Trustmark Meeting in Miami, September

6 ACTIVITIES BY REGIONAL WORKING GROUPS Europe/Africa Working Group a comprehensive inventory of existing ADR system study on legal obstacles to ADR in European B2C e-commerce cooperation with institutions dealing with ADR, including the European Commission, OECD and ICC two-day workshop with ADR/Trustmark Service Providers, the European Commission, business associations, academics and Asia/Oceania contact point to discuss the requirements for successful regional and global ADR systems

7 ACTIVITIES BY REGIONAL WORKING GROUPS Americas Working Group cooperation with institutions dealing with ADR, including the Federal Trade Commission, the OECD, the US Department of Commerce and a number of consumer groups inventory of ADR systems in North America two workshops organized jointly with the FTC and in close cooperation with consumer organizations, to discuss ADR systems

8 ACTIVITIES BY REGIONAL WORKING GROUPS Asia/Oceania Working Group: a joint study team with Keidanren, plans to establish a link with ECom (Electronic Commerce Promotion Council of Japan) study on the existing ADR systems in Asia/Oceania, particularly in Japan identification of the weak points of the application of existing ADR systems (off-line) applied to B2C and C2C e-commerce

9 DISTINCTIONS BETWEEN Arbitration Mediation Conciliation/Negotiation

10 ARBITRATION Process whereby one or several independent arbiters invite the parties to submit the facts and their arguments and decide on the basis of equity or law. Arbitration is mostly binding.

11 MEDIATION Process whereby a mediator simply passes the proposal of settlement to the other party and the counterproposal back to the first party until the two have reached agreement. He does not intervene in the negotiations but registers the final agreement.

12 CONCILIATION/NEGOTIATION Process whereby an impartial conciliator actively guides the parties towards a fair solution without the need to investigate in detail the applicable law. Final decision in the hands of both parties: agreement contract no agreementfree to go to court

13 RECOMMENDATIONS TO INTERNET MERCHANTS Encourage the use of in-house customer satisfaction programs Propose the possibility of ADR Inform about conditions of ADR

14 RECOMMENDATIONS TO ADR SERVICEPROVIDERS Impartiality Qualification of ADR officers Accessibility and Convenience Speed Low cost for the consumer Transparency Adversarial procedure

15 RECOMMENDATIONS TO ADR SERVICEPROVIDERS Principle of Representation Applicable Rules Consumer Awareness

16 RECOMMENDATIONS TO GOVERNEMENTS International rules on competent forum and applicable law Encourage the use of customer satisfaction systems and of ADR Education and Training No discrimination between different ADR systems No mandatory criteria or accreditation systems

17 RECOMMENDATIONS TO GOVERNEMENTS ADR also on the basis of equity or codes of conduct Global access to application of ADR Application of modern technologies in ADR Binding Arbitration in B2C disputes should be possible in certain cases Procedural and form requirements for ADR should be kept to a minimum

18 RECOMMENDATIONS TO GOVERNEMENTS Adjust offline ADR requirements to the online context Policy cooperation between public and private sector

19 WORLDWIDE OUTREACH 1. Endorsement by all GBDe member companies 2. GBDe annual conference in Miami Circulated to  Business Firms  Trade Associations  Law Firms & Universities  National Governments  Consumer Organizations  European Commission/Parliament

20 NEXT STEPS Refine guidelines and solve open items:  Accreditation of Certification Bodies  Certification of ADR systems  against international standards or GBDe guidelines  against codes of Trustmark owners  Monitoring and Supervision

21 NEXT STEPS Organize one day-events with consumer organizations in Brussels/Washington/ Tokyo Create Consumer Confidence Website Establish transparent and neutral clearing house for ADRs Promote and advocate guidelines worldwide