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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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 3 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 29 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 30