A Fresh Look At Online Dispute Resolution

Existing Dispute Resolution Mechanisms for Cross-Border B2B and B2C Transactions: Serving State, Business and

Consumer Interests?

A BBB Perspective

29 March 2010, Vienna, Austria

“I don't look to jump over 7-foot bars: I look around for 1-foot bars that I can step over. “

Warren Buffett

“The perfect is the enemy of the good.”Voltaire

Better Business Bureau

• Today:– Background on the BBB;– Current cross-border dispute resolution activity;– Role of formal courts system in cross-border consumer

redress;– “One size fits all” approach is unwise -- maybe

unworkable;– Important role of NGO’s – particularly SROs – in this

cross-border consumer environment.

Better Business Bureau

• Founded in 1912 – nearly 100 years of service;• A non-profit, North American organization;• 123 BBBs in U.S. and Canada;

• Mission: leader in advancing marketplace trust by:– Creating a community of trustworthy businesses; – Setting standards for marketplace trust;– Encouraging and supporting best practices;– Celebrating marketplace role models, and; – Denouncing substandard marketplace behavior.

BBB Complaints Processed2005 - 2009

*

* 978,519 complaints processed in 2009, excluding BBB AUTO LINE

BBB “Cross-Border” Consumer Complaints - 2009

Top 9 Source CountriesBBB Compared with e-Consumer.gov* - 2009

* NOTE: 2009 e-consumer.gov statistics annualized to provide estimated comparative data. U.S. and Canadian statistics removed from both sets.

BBB/TrustUK Agreement

• Average Value of All Cases – U.S. $963• Average Value of Fraud Cases – U.S. $1,357

• Average Value of Auction Fraud Cases – U.S. $1,538

Fraud – 36% of Total

BBB/TrustUK Agreement

58%

Fraud – Type of Fraud1

1 54 total fraud complaints

“I don't look to jump over 7-foot bars: I look around for 1-foot bars that I can step over. “

Warren Buffett

“The perfect is the enemy of the good.”Voltaire

Build On What Is Working

• Bear in mind:– Consumer dispute resolution is working – even in cross-

border disputes;– Harmonized, minimum standards/codes will be critical;– Trustmark programs, NGOs and SROs should be part of

the solution;– Governments have an important role to play in

eliminating fraud and abuse;– We need to continue to build on what is already working.

A Fresh Look At Online Dispute Resolution

Thank YouExisting Dispute Resolution Mechanisms for Cross-Border B2B and B2C

Transactions: Serving State, Business and Consumer Interests?

A BBB Perspective

29 March 2010, Vienna, Austria