E-commerce ADR plans afoot
E-commerce disputes could in future be resolved through Europe-wide small claims and alternative dispute resolution (ADR) procedures, according to plans approved in Strasbourg this week.
The proposed regulation - which would bind all member states - was put forward by solicitor MEP Diana Wallis, the rapporteur on the subject for the European Parliament's legal affairs committee, and voted on this week.
The system of dispute resolution attempts to tread a careful line between consumer and vendor interests.
Allowing consumers to pursue claims in their home courts could dissuade 'foreign' small and medium-sized businesses from investing in Internet expansion, the report said.
However, forcing consumers to pursue claims in foreign jurisdictions is costly and time-consuming for what are generally small claims, it concluded.
Ms Wallis said the regulation is needed as current provisions are 'extremely complicated and expensive' and not likely to be used by someone buying a book over the Internet.
'We need a system to deal with business to consumer disputes which will give both parties confidence to use e-commerce more widely in the future,' she said.
Another suggestion would also see jurisdiction clauses introduced in on-line consumer contracts, which would avoid traders being taken to court if they committed to a recognised ADR system.
A centralised electronic European Union casebook and judgement registry database - which would allow claims to be monitored - has also been suggested.
The European Commission also plans to work with banks and credit card companies to develop 'extrajudicial dispute resolution systems', for example, by encouraging bolt-on insurance for e-commerce transactions through credit cards.
The regulation now heads to a plenary session of the European Parliament with the hope that it will become binding by the end of the year.
Sue Allen
LINKS www.europarl.eu.int
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