The OAS-ODR Proposal: Functional Case Flows Colin Rule Director of Online Dispute Resolution, PayPal UNCITRAL ODR Meeting Vienna March 30, 2010

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Transcript The OAS-ODR Proposal: Functional Case Flows Colin Rule Director of Online Dispute Resolution, PayPal UNCITRAL ODR Meeting Vienna March 30, 2010

The OAS-ODR Proposal:
Functional Case Flows
Colin Rule
Director of Online Dispute Resolution, PayPal
UNCITRAL ODR Meeting
Vienna March 30, 2010
1
Origins of this Proposal
• We’ve had more than a decade of these
discussions
• Several strong attempts have been made at
building similar systems, but none have truly
taken root
• This discussion today represents the best chance
we’ve ever had to make a system like this a
reality – the time is now
• This design represents the state-of-the-art in
terms of technical design and quality ODR
practice
2
The OAS-ODR Proposal
• Developed since Nov. 2009
• Based on input gathered from
a wide variety of stakeholders
•
Designed to be:
–
–
–
–
Scalable
Transparent
Free of systemic bias
Appropriate for low value claims
• Enables continuing innovation
and system evolution as new
entities connect into the
common protocols
20010 UNCITRAL ODR CONFERENCE
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Case Flow
Case Flow
Global
Administrator
OAS
Case
DB
XML
National
Administrator
XML
XML
National
Administrator
The overall structure is a central administrator, who maintains
the global case database, and n ODR providers/national
administrators, each approved by the global administrator
AsiaODR
Case Flow
Global
Administrator
OAS
Case
DB
XML
XML
XML
Buyer
EU National
Administrator
A buyer files a complaint with
their local ODR provider/national
administrator in the EU
US National
Administrator
AsiaODR
Case Flow
Global
Administrator
OAS
Case
DB
XML
Buyer
EU National
Administrator
XML
XML
The EU National
Administrator sends
a notification of the
case filing to the
global case
administrator
US National
Administrator
AsiaODR
Case Flow
Global
Administrator
OAS
Case
DB
XML
Buyer
EU National
Administrator
XML
AsiaODR
XML
The global case
administrator looks up
the vendor and sees
that the vendor’s
preferred ODR
provider is the US
National Administrator
– and sends a
notification there
Seller
US National
Administrator
Case Flow
Global
Administrator
OAS
Case
DB
XML
Buyer
EU National
Administrator
XML
AsiaODR
XML
The seller reviews the
information submitted
by the buyer and files
a response, which US
National Administrator
sends back via the
global administrator
Seller
US National
Administrator
Case Flow
Global
Administrator
OAS
Case
DB
XML
Buyer
EU National
Administrator
XML
AsiaODR
XML
the global
administrator sends
the seller’s response
to the EU National
Administrator. The
buyer elects to end
communication and
escalate to the
arbitrator.
Seller
US National
Administrator
Case Flow
Global
Administrator
Neutral
OAS
Case
DB
XML
Buyer
EU National
Administrator
XML
AsiaODR
XML
the central
administrator selects
a neutral from a
third, uninvolved
ODR provider. The
neutral evaluates
the information and
renders a decision.
Seller
US National
Administrator
Case Flow
Global
Administrator
OAS
Case
DB
XML
XML
AsiaODR
XML
Buyer
EU National
Administrator
Seller
US National
Administrator
The seller and buyer are then
informed of the neutral’s decision.
Case Flow
Global
Administrator
the global administrator keeps
records on all cases filed,
categories, and outcomes so that
they can monitor overall
performance
OAS
Case
DB
XML
XML
XML
Buyer
EU National
Administrator
AsiaODR
Seller
US National
Administrator
Enforcement
Enforcement
Global
Administrator
OAS
Case
DB
XML
XML
AsiaODR
XML
Buyer
EU National
Administrator
Seller
US National
Administrator
Once a case is decided, the
outcome is communicated to the
seller’s preferred administrator
Enforcement
Global
Administrator
OAS
Case
DB
XML
XML
AsiaODR
XML
Buyer
EU National
Administrator
Seller
US National
Administrator
The seller is instructed to move
the money appropriate to the
outcome of the case
Enforcement
Global
Administrator
OAS
Case
DB
XML
AsiaODR
?
XML
XML
Buyer
EU National
Administrator
Seller
US National
Administrator
After a certain period of time
(7 days) the buyer’s ODR provider
checks with the buyer to ensure
the money has been received
Enforcement
Global
Administrator
OAS
Case
DB
XML
XML
AsiaODR
XML
Buyer
EU National
Administrator
Seller
US National
Administrator
If the buyer indicates the money
has not yet been received, the
global administrator is notified
Enforcement
Global
Administrator
OAS
Case
DB
XML
XML
AsiaODR
XML
Buyer
EU National
Administrator
Seller
US National
Administrator
The global administrator then
works with the seller’s preferred
ODR administrator to enforce the
outcome through other channels
Money Flow
Money Flow
Global
Administrator
Administrator collects
monthly fees from all
participating vendors
Seller
Seller
Seller
XML
OAS
Case
DB
XML
XML
Buyer
EU National
Administrator
AsiaODR
Seller
US National
Administrator
Money Flow
Global
Administrator
OAS
Case
DB
XML
XML
XML
Buyer
EU National
Administrator
AsiaODR
Seller
US National
Administrator
Sellers pay a small fee
to the global
administrator for each
case filed against them
Money Flow
Global
Administrator
OAS
Case
DB
XML
XML
XML
EU National
Administrator
US National
Administrator
Every approved ODR
administrator receives a monthly
payment from the global
administrator
AsiaODR
Money Flow
Global
Administrator
Neutral
OAS
Case
DB
XML
XML
XML
Buyer
EU National
Administrator
AsiaODR
Seller
US National
Administrator
Once a case is closed, the global
administrator forwards payment to
both the buyer and the seller’s ODR
administrator and the ODR
administrator that provided the neutral
Money Flow
Global
Administrator
OAS
Case
DB
XML
XML
XML
EU National
Administrator
US National
Administrator
Buyer
Seller
If the buyer and seller work
through the same ODR provider,
that provider gets both the buyer
and seller payments
AsiaODR
Money Flow
Global
Administrator
OAS
Case
DB
XML
XML
AsiaODR
XML
Buyer
EU National
Administrator
Seller
US National
Administrator
If the seller does not pay in
response to an award against
them, the global administrator
may elect to pay the buyer directly
from collected dues
Structure
Structure
Global
Administrator
XML
OAS
Case
DB
XML
XML
XML
XML
Buyer
EU National
Administrator
US National
Administrator
Businesses and payment
channels may also integrate into
the system and represent their
sellers directly
AsiaODR
Conclusions
• Current justice systems are not an option
for cross border, small value, high volume
claims
• The barriers are not just legal – they’re
practical
• Courts will never handle these volumes
• There is a clear global consensus around
the best approach: online dispute resolution
• We are the people who have the ability and
responsibility to address this problem
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Conclusions (2)
• I urge UNCITRAL to take this issue on as
part of the eCommerce Committee
• We are kicking off a Working Group this
evening to:
– Fully develop an implementation plan
– Gather input from global stakeholders
– Secure support from online businesses, NGOs,
and national consumer protection authorities
• We will present our final recommendation
at an ICANN-hosted conference in
Vancouver at the end of this year
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