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ALTERNATIVE DISPUTE RESOLUTION

OECD CONFERENCEDen Hague

11./12. December 2000Constanze Picking

DaimlerChrysler for GBDe

IN E-COMMERCE

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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

andConsumers everywhere with today

72 Members.

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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

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ALTERNATIVE DISPUTE RESOLUTION

Developed by business to provide:

* speedier dispute

* more informed resolution

* more cost-effective by impartial experts

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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

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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

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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

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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

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DISTINCTIONS BETWEEN

• Arbitration

• Mediation

• Conciliation/Negotiation

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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.

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MEDIATION

Process whereby a mediator simply passes the

proposal of settlement to the other party andthe counterproposal back to the first party

untilthe two have reached agreement. He does not intervene in the negotiations butregisters the final agreement.

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CONCILIATION/NEGOTIATION

Process whereby an impartial conciliatoractively guides the parties towards a fairsolution without the need to investigate indetail the applicable law. Final decision in thehands of both parties:• agreement contract• no agreement free to go to

court

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RECOMMENDATIONS TO INTERNET MERCHANTS

• Encourage the use of in-house customer satisfaction programs

• Propose the possibility of ADR• Inform about conditions of ADR

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RECOMMENDATIONS TO ADR SERVICEPROVIDERS

• Impartiality• Qualification of ADR officers• Accessibility and Convenience• Speed• Low cost for the consumer• Transparency• Adversarial procedure

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RECOMMENDATIONS TO ADR SERVICEPROVIDERS

• Principle of Representation• Applicable Rules• Consumer Awareness

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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

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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

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RECOMMENDATIONS TO GOVERNEMENTS

• Adjust offline ADR requirements to the online context

• Policy cooperation between public and private sector

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WORLDWIDE OUTREACH

1. Endorsement by all GBDe member companies

2. GBDe annual conference in Miami 20003. Circulated to

Business Firms Trade Associations Law Firms & Universities National Governments Consumer Organizations European Commission/Parliament

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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

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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