A. INCENTIVES TO PARTICIPATE IN AN ODR PROCESS. – Parties’ participation in the ADR/ODR process greatly depends on the associated costs and the level of trust parties have in the overall ODR process. • COST-EFFECTIVE AND ECONOMICALLY JUSTIFIABLE ODR PROCESS – Parties shall be incentivized to participate at the ODR mechanisms by ensuring free or low-cost process to consumers and by indicating economic benefits for traders (e.g. trader’s participation in ODR process limits the number of chargebacks issued against him which can ultimately affect the interest rates that the trader pays per transaction; efficient resolution of consumer disputes enhances the consumers’ confidence in the fairness of the marketplace and consequently increases the commercial activity of traders, etc.); • CREATION OF GLOBALLY RECOGNIZABLE AND REPUTABLE TRUSTMARK – The role of the trustmark is to assist consumers in recognising reliable traders and ADR entities by setting conditions for displaying (e.g. high rate of resolved disputes) and withdrawal of a trustmark (non-compliance with the adopted standards by ADR/ODR entities; traders’ refusal to participate in the ADR proceedings or to comply with final outcomes) and designating public institution that will be monitoring compliance with the adopted standards. B. INCENTIVES TO SETTLE COMPLAINTS: • AN EFFECTIVE AUTOMATED NEGOTIATION TOOL – Creation of this tool enables most disputes to be resolved in its base, before progressing into the next stage(s), i.e., without the intervention of neutral third parties towards facilitation of settlements and imposition of decisions (e.g. UNCITRAL adopted pyramid shaped ODR scheme). • REDUCTION OF CASE FEES AS A MEANS OF REWARDING PARTIES WHO SETTLE COMPLAINTS EARLY – The purpose of this incentive is to encourage parties to settle meritorious complaints before they progress to procedures in which a third party is appointed and case fees are requested. • COST PENALTIES - Cost sanctions may be used for encouraging parties to settle their disputes when appropriate, instead of employing more costly adjudicative models (e.g. in case of consumer complaints against members of the Association for British Travel Agents (ABTA), the CEDR Solve Consumer Arbitration Scheme provides that when the consumer-complainant is awarded less than was previously offered by the trader, the consumer would be ordered to pay an amount that is equal to the registration fee). • MULTI-TIERED DISPUTE RESOLUTION PROCESSES - A multi-tiered ODR process can be used as a model for the future ODR mechanism under the auspices of HCCH, as it is implemented in the majority of consumer disputes. In fact, not only is this already the model employed by many ombudsmen in Europe but it is also the approach being proposed by UNICTRAL for the resolution of e-commerce disputes. • THE PUBLICATION OF ADJUDICATED DECISIONS – The publication of decisions would have at least three important roles: first, to bring transparency to a process in which the parties do not contest on an equal footing, and in which traders are repeat players while consumers are inexperienced users; secondly, to
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