Cross-Border ODR Pilot ODR should be nice and easy 6 February 2012 1 Buyer clicks on a website of the seller Buyer clicks on a website of a consumer center.

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Presentation transcript:

Cross-Border ODR Pilot ODR should be nice and easy 6 February Buyer clicks on a website of the seller Buyer clicks on a website of a consumer center (e.g. ECC-NET) or other recognized ODR provider (e.g. BBB) This flower is a hypothetical example of one of many logos or trustmarks of different ADR/ODR interconnected programs

6 February Again, this is a hypothetical example of one of cross-border ODR platforms participating in the global ODR system. The purpose of the next few slides is to show how a cross-border ODR platform or application might look like.

6 February

4

5 Initially, the cross-border ODR is workable for simple, narrowly defined fact- based claims and many e- commerce claims are like that. The system can be gradually extended in the future. ODR language

Goods or Services Not Received Agreed delivery date was on ___ [DATE], nothing was received by that date.  The seller must deliver the goods or services that are described in the contract.  The buyer has a right to receive the goods or services that are described in the contract. 6 February Item not received

Zboží nebo služby nebyly poskytnuté Dohodnuté datum dodání bylo dne ___ [DATUM], a k tomuto dni nic nedošlo.  Prodávající musí dodat zboží nebo služby, popsané ve smlouvě.  Kupující má právo obdržet zboží nebo služby, popsané ve smlouvě. 6 February Zboží nedošlo This slide illustrates how language issue can be resolved. It is possible to standardize the ODR process communication for simple, narrowly defined fact-based e-commerce claims and localize it in as many languages as possible.

First working draft: “… It also enables full unlimited participation into redress systems for persons who may have difficulty communicating effectively with textual communication. The use of ECRI will greatly facilitate participation through the reduction of barriers for certain populations.  ECRI License …..  Further development of ECRI …  ECRI  Claims in a Complaint” 6 February E-Commerce Resolution Interchange (ECRI) Item not as described ECRI is a name of a proposed ODR communication quasi-standard. We have prepared first working draft of ECRI. ECRI should be finalized during the proposed pilot.

6 February

Where the Complaint will go? ODR will include negotiation, mediation/arbitration decision enforcement 6 February To the seller if buyer clicks on a website of the seller. That means the seller has publicly opted for ODR To the seller and a consumer center or ODR provider if buyer clicks on a website of a consumer center or ODR provider. The center/ODR provider will forward complaint to a participating center/ODR provider in seller’s country. This provider will approach the seller so that the seller accepts ODR in this case

ODR programs participating in the cross-border ODR need to: (i)meet consistent criteria and operate under similar rules; (ii)either be accredited or reviewed by respective national regulator(s) prior to their participation; (iii)if possible be assisted by interlinked consumer centers providing guidelines to consumers and outreach to domestic online sellers; (iv)incorporate common ODR procedural language/communication standard understandable to all ODR providers and consumer centers, in order to enable self-resolution as well as third-party mediation/arbitration; and (v)operate as an online platform, implementing the common ODR language and minimum common technology requirements. What do we need? Anatomy of a global ODR 6 February Item shipped

Future global cross-border ODR systems must incorporate:  Minimum common ODR rules and standards for ODR providers and neutrals, i.e. results of the work of UNCITRAL Working Group III;  Cross-border ODR infrastructure interconnecting all ODR stakeholders; and  A viable way to set up and implement the common ODR rules and cross-border ODR infrastructure while at the same time supporting the establishment of various ODR programs on a global or regional basis competing and complementing one another. 6 February

UNCITRAL Working Group III 6 February

Central DB Cross-border ODR Exchange Architecture An ODR Exchange will be established to host Central Databases containing information necessary for the system regionally/ worldwide Every case in the database will have its data structured in the same way, for instance: Case ID: (8 integers) Complainant name: (60 characters) Complainant (60 characters) Respondent name: (60 characters) Respondent (60 characters) Transaction date: (date) Complaint date: (date) Website where complaint originated (URL) … Every case will also be classified with reason codes indicating the complaint type, the preferred resolution, the response and the offered resolution, making translation less of an issue 56:Item Not Received 58:Item Broken 66:Item Not Authentic 72:Item Not as Described … Proposed ECRI Standard 6 February 2012

Cross-border ODR Exchange Architecture ODR Exchange will include the following: - Necessary central databases (e.g. list of accredited ODR providers); - ODR communication standard (ECRI); - Minimum technology requirements on ODR providers (common technology protocol); - Application to operate the central databases; and - Implementation of the above issues provided as a service 6 February Item broken These are components of the ODR Data Exchange, one of the necessary instruments of a global ODR

Central DB ODR Exchange Technology neutral standard data structures will enable an ODR Provider to use its own application which interconnects with its existing case administration system Cross-border ODR Exchange Architecture ODR Provider ODR Provider can also obtain such application from a third party provider, together with quick updates of ECRI enhancements and support services (software as a service) National Consumer Protection Authority Local Consumer Protection Agency seller buyer 6 February 2012

Central DB ODR Exchange ECC-NET forms and look-and-feel Cross-border ODR Data Exchange Architecture ODR Protocol BBB forms and look-and-feel National Consumer Protection Center Global Trustmark seller buyer 6 February 2012 ODR Data Exchange will enable different ADR/ODR providers and participating consumer centers to keep their look-and- feel and still communicate with each other. It might also implement region-specific ODR programs (e.g. within EU) while keeping global interoperability.

Central Case DB ODR Exchange National Consumer Protection Authority Cross-border ODR Exchange Architecture seller If the seller does not implement issued ODR awards, the national consumer authority can take enforcement actions; there is a prevailing view that the decisions should be enforceable under the New York Convention; in addition, they might be enforced via private enforcement intermediaries (e.g. payment channels) and the default of the merchant may also be published by the ODR Exchange Enforcement via NYC Private enforcement via payment channels, naming- shaming 6 February 2012

ODR Exchange Cross-border ODR Exchange Architecture € € Seller 1-n ODR Exchange will not be handling any cases and will not market itself to consumers and/or online sellers. Users of ODR Exchange service (accredited ODR providers and consumer centers) will market its services publicly. Regional implementations of ODR Exchange can serve as a collection agent of regular small fees from online sellers for their use of the regional ODR logo (e.g. ECC-NET ODR), or an existing trustmark, or logo of an ODR provider (e.g. ADR.EU) to cover costs of case handling by regional or national ODR providers. In addition, ODR Exchange will contain principal information for buyers and sellers online (links to consumer centers, commonly structured statistics etc.) and can be connected with international public awareness campaigns. ODR Provider 1-n 6 February 2012

ODR Exchange Services of ODR Exchange will provide the following: -multi-lingual ODR application implemented in a cloud and provided as a white label service to accredited ADR/ODR providers and consumer centers; -maintenance and operation of central databases of the cross-border ODR system (e.g. database of accredited ODR providers and neutrals or black list of sellers which do not implement issued decisions); -providing consultations and implementation services to ODR programs; and -maintenance of a global ODR communication standard and minimum technical requirements so that ODR providers are -. able to implement their own unique ODR solutions consistent with the published - specification. 6 February

ODR Exchange I. ODR providers/consumer centers will receive: - updated specifications; - maintenance of central databases; - consulting and implementation services - ready to be implemented cross-border ODR solution; II. ODR providers/consumer centers will: - localize communication standard and ODR Rules; - promote implementations of ODR Data Exchange to consumers and online sellers in their respective countries. 6 February Not paid

ODR Exchange Pilot ( ODR Exchange pilot started in January Our goal is to verify and discuss cross-border ODR system which is workable, very simple, and which can work without basic regard to detailed provisions of applicable law, specific national rules for the protection of consumers etc. ODR practitioners from many countries participate, including from USA and Canada (BBB), Latin America (ILCE), EU (ECC- NET), Korea etc. New entities are joining… First draft documents for discussion and comments were distributed this week. All pilot documents are available at 6 February

Proposal to Pilot ODR Exchange First stage of the pilot will last from January to May 2012 and will include the following: -Verification and testing of the proposed functions of ODR Exchange application; -Finalization of the ODR communication standard and minimum technology requirements on ODR providers; -Clarification of costs involved for ODR providers with administering cross-border ODR disputes; -Necessity/desireability of some kind of coordination structure of the ODR stakeholders using ODR Data Exchange; - Contacts and discussions with payment channels and with associations of online sellers and large online sellers. EVERY PILOT PARTICIPANT WILL C COVER ITS OWN COSTS 6 February Discount

Proposal to Pilot ODR Exchange Results of the first stage of the pilot will be announced during UNCITRAL meeting in May During the second stage of the Pilot (till October 2012) the ODR Exchange will be finalized. We expect ODR Exchange to be put into live operation in the fall of February Replacement

Cross-border ODR Pilot Thank you for your attention. Zbynek Loebl 6 February