Online Dispute Resolution In E-Commerce: Balancing Consumer Protection And Arbitration
Rushikesh Singar, LL.M., Deccan Education Society’s Shri. Navalmal Firodia Law College, Pune, Savitribai Phule Pune University
ABSTRACT
The rapid growth of electronic commerce has transformed consumer transactions and increased the need for efficient, accessible, and cost- effective mechanisms for resolving disputes. Online Dispute Resolution (ODR) has emerged as an important alternative to traditional litigation by facilitating the resolution of disputes through digital platforms, online negotiation, mediation, and arbitration. However, the increasing use of arbitration clauses in standard-form online contracts raises concerns regarding consumer consent, unequal bargaining power, procedural fairness, and access to justice.
This paper critically examines the role of Online Dispute Resolution in e- commerce, with particular reference to the Indian legal framework. It analyses the Consumer Protection Act, 2019, the Consumer Protection (E- Commerce) Rules, 2020, and the Arbitration and Conciliation Act, 1996, to understand the relationship between private arbitration mechanisms and statutory consumer remedies. It also considers relevant judicial decisions and international developments concerning online dispute resolution. The study highlights challenges such as excessive dispute resolution costs, lack of transparency, digital exclusion, data protection concerns, and the potential misuse of mandatory arbitration clauses. It argues that although ODR can enhance efficiency and convenience, its effectiveness depends on transparency, affordability, impartiality, and informed consumer consent. The paper concludes that a balanced, consumer-centric ODR framework should promote alternative dispute resolution while safeguarding statutory consumer rights and ensuring meaningful access to justice in the digital marketplace.
Keywords: Online Dispute Resolution, E-Commerce, Consumer Protection, Arbitration, Mediation, Electronic Contracts, Access to Justice.
