US proposes trustmark to resolve disputes

Solicitors in England and Wales are to have the chance to air their views on an American Bar Association (ABA) plan for a global on-line dispute resolution 'trustmark'.

The ABA's task force on e-commerce and alternative dispute resolution has issued a preliminary draft report proposing guidelines for resolving disputes in e-commerce transactions, and intends to hold hearings in London and Paris this summer 'to receive feedback from international parties'.It also hopes to arrange further meetings, or at least video conferences, in Latin America, Africa, the Middle East, and Asia in the autumn.The trustmark would be a seal of approval and identify businesses that adhere to specific dispute resolution procedures with the aim of offering on-line customers confidence about the handling of their complaints.

The ABA plan envisages the trustmark being handed out by an authority to existing on-line dispute resolution (ODR) providers, which are often used by traders for customer complaints.The task force said the types of procedures and standards used by third-party ODR providers vary enormously.

This lack of uniformity damages consumer confidence in the whole ODR system, the report argued.

It highlighted in particular the problems of enforcement.'In many cases, the link between ODR and effective enforcement mechanisms remains unclear...

Without effective enforcement, the vitality of ODR may be severelyhindered.' The trustmark authority - the nature and funding of which is still open to debate - would have the power to keep providers under review and, if necessary, withdraw their trustmark.The task force said the 'beauty of a trustmark concept is that the trustmark provider could be an agent of continuous change'.

While stand-alone ODR protocols are updated less frequently, the report said, the authority could 'continuously monitor and update its practices'.In addition to the meetings to discuss the report, the task force is planning to issue a more detailed 'white paper' on ODR, as well as model disclosure provisions for ODR providers, concerning issues such as security, record retention, confidentiality, and conflicts of interest.LINKS: www.law.washington.eduABA-eADRNeil Rose