Redress and Alternative Dispute Resolution in EU Cross-Border E-Commerce Transactions1

TLDR

Effective dispute settlement is seen as a key way to boost consumer confidence in cross‑border online purchases, yet studies show that public uptake of online dispute resolution remains low. The study investigates why few consumers use ODR and how low uptake affects confidence in cross‑border e‑commerce. The authors broaden the definition of ODR, distinguishing between traditional “hard” processes and newer “soft” ones, and analyze the low uptake of hard ODR alongside the theoretical pros and cons of both approaches. They review successful hard and soft ODR examples and discuss the implications of these findings for EU ODR policy over short, medium, and long horizons.

Abstract

Abstract Effective dispute settlement is regarded as one of the means of enhancing consumer confidence in cross-border purchases over the Internet. Yet, studies of online dispute resolution (ODR) show, on the whole, poor uptake of ODR by the public. This paper is based on a research project carried out by the authors (funded by the European Parliament) which explored why so few people resort to ODR and what are the implications of low uptake for consumer confidence in cross-border e-commerce. The authors expand the traditional definition of ODR and introduce a distinction between what they term 'hard' or traditional ODR processes and the more novel 'soft' ODR processes. The low uptake of 'hard' ODR is critically considered, as are the theoretical advantages and disadvantages of 'hard' and 'soft' ODR. Successful examples of one 'hard' and one 'soft' ODR mechanism are reviewed. The authors conclude with considering the implications for EU ODR policy in the short, medium and long term.