Enhancing the effectiveness of Online Dispute Resolution (ODR) mechanism in cross-border e-commerce transactions: A Comparative Analysis of Legal Frameworks. Challenges, and Opportunities

Abstract

This study examines the key legal and regulatory challenges affecting the enforcement and effectiveness of Online Dispute Resolution (ODR) mechanisms on peer-to-peer (P2P) e-commerce platforms in the United States (US), European Union (EU), and United Kingdom (UK). These jurisdictions were selected due to their significant roles in global e-commerce, distinct legal approaches to ODR, and varied regulatory environments, providing a comprehensive basis for comparative analysis. To achieve a deep understanding of these challenges, this research adopts a functionalist comparative methodology. This approach is particularly suited for this study because it enables an analysis of how different jurisdictions’ legal systems function in practice to support or hinder the resolution of disputes on P2P e-commerce platforms. Rather than merely comparing legal rules or doctrines, the functionalist approach focuses on how legal norms and institutions perform similar societal functions or address common problems. In the context of ODR, this allows for the identification of common challenges and effective solutions across different legal systems. Employing a functionalist comparative methodology, the research focuses on three primary comparators: the enforceability of ODR agreements and awards, data protection and privacy laws, and accessibility and user trust. The analysis reveals that while ODR mechanisms are essential for resolving disputes in P2P e-commerce, their effectiveness is significantly influenced by jurisdiction-specific legal frameworks. In the US, the Federal Arbitration Act supports the enforceability of arbitration agreements, facilitating ODR but raising concerns over consumer rights. The EU’s emphasis on consumer protection through directives and the General Data Protection Regulation (GDPR) enhances user trust but may hinder ODR efficiency due to stringent compliance requirements. The UK’s post-Brexit landscape strives to balance consumer protection with business flexibility, creating unique challenges and opportunities for ODR implementation. The study concludes that harmonizing ODR standards across jurisdictions and integrating emerging technologies like Artificial Intelligence and blockchain can enhance the effectiveness, fairness, and accessibility of ODR mechanisms globally. Recommendations include adopting international standards such as the UNCITRAL Technical Notes on ODR, ensuring compliance with data protection regulations, and educating users about ODR processes and their rights. These measures aim to strengthen user trust, improve dispute resolution outcomes, and support the sustainable growth of P2P e-commerce platforms worldwide.