Online Dispute Resolution Handbook of NITI Aayog

NITI Aayog is to launch Online Dispute Resolution handbook. It is an invitation to business leaders to adopt Online Dispute resolution.

About the Handbook

The Handbook highlights the need for the businesses to adopt Online Dispute Resolution mechanism. According to the handbook, the Online Dispute Resolution (ODR) is the resolution of disputes outside courts. This is mainly used to solve small and medium cases using digital technology. The Online Dispute Resolution adopts techniques of Alternate Dispute Resolution (ADR) such as mediation, negotiation, and arbitration.

United Nations

• The United Nations Commission on International Law adopted the UNCITRAL Conciliation Rules in 1980 and Model Law on International Commercial Arbitration in 1985. The UN has recommended the use to the Model Law and the rules to solve disputes that arises in international commercial relations.
• India enacted the Arbitration and Conciliation Act in 1996. The act incorporates several uniform principles of Alternate Dispute Resolution of UNCITRAL.

Benefits of Online Dispute Resolution

• The Alternate Dispute Resolution was brought as an alternative to going to court. However, it has become expensive lately. On the other hand, Online Dispute Resolution is inexpensive.
• There are shortages in availability of arbitrator in Alternate Dispute Resolution. This is issue is also addressed by Online Dispute Resolution as searching an arbitrator online is simple and quick.

Challenges in Online Dispute Resolution

• Lack of trust among consumers in Online Dispute Resolution.
• Most of the people are new to Digital Ecosystem and are hesitant to adopt a new method.

What is the difference between ODR and ADR?

ODR is a process that settles disputes outside courts using digital technology. It combines the technologies of Alternative Dispute Resolution Mechanisms. However, both ODR and ADR work towards achieving the same goal.

Online Dispute Resolution in India

The Online Dispute Resolution is in its infancy stage in India. With the E-Commerce industry growing in India rapidly, the number of disputes related to online transactions are increasing at faster rate. The Department of Consumer Affairs has rolled out Online Consumer Dispute Resolution Platform to address this issue.

Month: Current Affairs - April, 2021