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The Case for Online Dispute Resolution

By Mark Grossman
October 02, 2003

Whenever you have buyers and sellers, you will inevitably have disputes, and the online world is no different. What the online world lacks but needs is an inexpensive, quick, efficient and impartial method of dispute resolution. What we have now is a patchwork system for dealing with these issues and I'm not optimistic that major improvements are coming anytime soon.

Today, when you make a purchase online and then have a dispute with your seller, there is no quick and easy answer to resolving the problem. This isn't necessarily a uniquely online problem either. For example, just the fact that most consumer purchases are for relatively small amounts creates a problem. You can't exactly hire a team of lawyers, bring in three arbitrators and serve subpoenas because your Beanie Baby arrived without its birth certificate.

While my Beanie Baby example might be a bit flip, it does help make the point that even small arguments need a method of dispute resolution that's perceived as fair to all concerned. Moreover, the online world is different from going to your local store for a multitude of reasons. We must come up with better ways to deal with disputes that arise online or face the consequences of consumer fear of online buying because of concerns about things like bad service, broken promises and fraud.

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