Abstract

This article discusses potential issues of current European Union regulations in regard to the online dispute resolution, together with potential reasons for low popularity of this way of resolving disputes. The author analyses Her Majesty’s Courts and Tribunals Service (HMCTS) reform programme in England and Wales and compares the online dispute resolution systems as integral parts of courts to the ones functioning independently in the private sector. The article examines the potential for new legal framework promoting the development of online dispute resolution systems in either the private or public sector or in both of them.

Highlights

  • According to Věra Jourová, European Commissioner for Justice, Consumers and Gender Equality, there are too many European Union citizens who don’t trust their justice systems and wait too long for justice to be served (The 2019 EU Justice Scoreboard)

  • The goal of this article is to review European Union regulations on online dispute resolution and identify the legal gaps that impede on wider recognition of initiatives in the private sector and potential legal risks of current regulation. This goal is achieved by identifying the issues of a jurisdiction of online dispute resolution and its correlation to the rule of law, recognizing regulatory gaps and reasons why society does not entrust their disputes to systems promoted in the private sector as well as discussing the perspectives of further European Union regulations on further development of online dispute resolution systems

  • Article 2 of the Regulation 524/2013 expands the scope by indicating that the regulation shall apply to the out-of-court resolution of disputes concerning contractual obligations stemming from online sales or service contracts between a consumer resident and a trader, where both of them are based in the EU, Norway, Iceland or Liechtenstein (European Commission’s Online dispute resolution (ODR) Regulation (No 524/ 2013), meaning that low value requirement is no longer relevant as long as a dispute is in relation to certain contractual obligations

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Summary

INTRODUCTION

According to Věra Jourová, European Commissioner for Justice, Consumers and Gender Equality, there are too many European Union citizens who don’t trust their justice systems and wait too long for justice to be served (The 2019 EU Justice Scoreboard). The goal of this article is to review European Union regulations on online dispute resolution and identify the legal gaps that impede on wider recognition of initiatives in the private sector and potential legal risks of current regulation. This goal is achieved by identifying the issues of a jurisdiction of online dispute resolution and its correlation to the rule of law, recognizing regulatory gaps and reasons why society does not entrust their disputes to systems promoted in the private sector as well as discussing the perspectives of further European Union regulations on further development of online dispute resolution systems. The rising potential of transferring online dispute resolution functions from a private sector to a public one

WHAT DO WE MEAN BY ONLINE DISPUTE RESOLUTION?
DEFINING THE JURISDICTION OF ODR
IS OUR RULE OF LAW IN JEOPARDY?
THE HMCTS REFORM PROGRAMME
CONCLUSIONS
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