Transcript ODR and China - Pace Law School

Development of ODR in China
XU Junke
China University of Foreign Affairs
Beijing, P.R.China
[email protected]
I. Introduction
 China's e-commerce in 2009
 The annual amount of transaction was approximately
RMB250 billion yuan
 there were as many as 15,600 e-commerce sites
nationwide
 B2Csite has seen visitors totaling 246 million
 B2C reported a market gain of RMB22.02 billion yuan
 More than 50% enterprises set up B2C marketplace on
line
statistics from http://www.china.com.cn/news/index.htm, 2010.1.27
The online retail market of B2C in China from 2008 to 2009
The graph is from http://www.qq.com/，2010.1.27
Various kinds of disputes
 The common disputes of B2C e-commerce have the
following items:
 1. The disputes of the quality on goods or service
 2. The disputes on the related fee payment
 3. The disputes about the returns and refund
 4. The disputes about no performance of a contract
 5. The disputes about termination of service without
reasonable cause
 6. The disputes about consumer’s privacy being
invaded.
The arrival of the era of Internet and booming
of e-commerce calls for ODR mechanism.
ODR, integrate of network technology and
ADR, is adaptable to the global e-commerce
environment.
II. The current status of ODR in China
China ODR is divided into four categories
1. The Online Dispute Resolution Center of CIETAC (also
known as the Domain Name Dispute Resolution Center
of the CIETAC).
2. Online Dispute Resolution Center
3. Internal Complaint Mechanism
4. Online Petitions
1.The Online Dispute Resolution Center of
CIETAC
 At present the center mainly settles CN/Chinese domain
name disputes, common address disputes, SMS URL
disputes and electronic business disputes.
 In addition, the center settles the disputes over com,
net and other generic top-level domain names accepted
in the name of the Beijing Secretariat of the Asian
Domain Name Dispute Resolution Center.
2.Online Dispute Resolution Center
 In June 2004, China's E-commerce Laws Nets and
Beijing Deofar Consulting Ltd. set up the “online
dispute resolution center".
 The center aims at offering information exchange
platform and solving the disputes related to
electronic commerce fairly, justly and promptly.
 It adopts, among others, a complete set of rules and
fee charging standards for online negotiation,
mediation as well as ChinaODR authentication
protocol.
3.Internal Complaint Mechanism
 Internal Complaint Mechanism refers to the system
established by the provider of network transaction
platform and used to accept consumer complaints,
communicate with consumers and settle the
disputes involving consumption through
consultation.
 Taobao platform produced about 180 million
transactions in 2009, and the resolved consumer
rights disputes on 900,000 occasions
4.Online Petitions
 Online Petitions are adopted by many nonprofit organizations such as association and
the consumer protection groups, such as:
China's Electronic Chamber
Electronic Commerce Association of Beijing
E-commerce Industry Association ofShangai
III. Obstacles in operating the
mechanism of ODR
 1. Information network technology
 2. The credit system
 3. Government support
 4. Laws and regulations
1. Information network technology
 The network environment and coordination system
need to be updated constantly; the technology
relating to security of online communication and
protection of personal privacy should be improved;
 The "digital divide" phenomenon is becoming much
more problematic along with the continuous
development of communication technology in
recent years.
2. Credit system
 It is an important aspect of developing B2C ecommerce to establish online trust and strengthen
the consumer confidence.
 In China, the credit consciousness is very weak
 Enterprises, customers and government rely
excessively on the trust of public power, which can
hinder people from using ODR.
3. Government support
 A fundamental principle of ODR is to cross state
power decided by the internet.
 The government should not interfere excessively.
 But without government regulation the e-commerce
may go wrong.
4. Laws and regulations
 Today, if ODR can further development, it needs to
improve the legal environment.
 The proper legal regulation can increase the
efficiency and fairness of ODR.
IV. Future development of ODR in China
 1.Cooperation among enterprises, consumers,
government, and nongovernmental organization
should be strengthened.
 2. Strengthening international exchanges and
cooperation
1.Cooperation among enterprises, consumers,
government, and nongovernmental organization
should be strengthened
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1) Establishing credit mechanism online and offline
2) Leading role of the enterprises
3) Self-discipline of industry
4) Promotion of the government
2. Strengthen international exchanges and cooperation
 1) China should pay attention to the latest concepts
from the international community
 2) China needs to draw on the experiences and
technology of the developed countries.
V. Conclusion
 China has taken steps in ODR practice. However, it
is still only a fledgling, work needs to be done for
improvement.
 China also should take active measures to cultivate
their online dispute resolution mechanism based on
the e-commerce features and international pratice
needs.
Thank you!