Online Dispute Resolution

The Online Dispute Resolution (“the ODR”) offers the ADR in a virtual environment for more than two decades. However, the ODR gained interest especially after the COVID-19 pandemic as a part of “the New Normal”, digitalization which brought new concepts into our lives. 

In the last decades, international and domestic businesses started using e-commerce significantly, naturally also creating various forms of disputes, including e-dispute. The disputing business partners or parties started using the ODR instead of the traditional “in-person” ADR methods or arbitration. This is mainly because the ODR offers many advantages such as saving time and money. 

To use the ODR method, an ODR platform is necessary. This platform consists of an online platform and equipment. This helps the parties to a cross-border dispute join the ADR or arbitration process without having to travel overseas and pay the associated high costs.

As a result of increasing cross-border transactions, the need for ADR mechanisms also increased. Eventually, the UNCITRAL adopted “Technical Notes on Online Dispute Resolution” in 2016. In this adopted text, the ODR focused on e-commerce at a low cost. Additionally, the ODR may also be used for business-to-business and business-to-customer disputes, arising from sale and service agreements. The ODR is mostly used in mediation and arbitration.