TECHNOLOGICAL ADVANCEMENTS IN ENFORCEMENT OF CONSUMER RIGHTS: ONLINE DISPUTE RESOLUTION

Abstract

A massive digital transformation has been underway for some time now and technology is becoming a part of our everyday lives. It has also crept into the arena of consumer policy where use of technology to resolve consumer disputes is being encouraged. With technology taking over, a huge number of consumer transactions are taking place online. This has given rise to sharp rise in disputes and conflicts which are unavoidable even if all parties act in good faith. Most of these are for low-value products and services, and hence a consumer has no incentive to invest time and money in court litigation or other out-of-court settlement mechanisms which are often lengthy and costly. Hence, the use of online platforms to resolve such disputes is being encouraged, so that consumers play an active role in exercising their rights. These mechanisms where disputes are resolved online using technology and software are called Online Dispute Resolution Mechanisms. It is becoming increasingly common in the West, where national authorities are developing public Online Dispute Resolution platforms to resolve minor disputes. However, despite its increasing popularity, the mechanism suffers from various risks and challenges. These include lack of clarity on the role of online platforms providing such mechanisms and lack of awareness and trust among consumers. Hence, before Online Dispute Resolution mechanisms replace or take over traditional dispute resolution mechanisms, it is important to address these issues to make the system more dependable and accessible to consumers.