Online dispute resolution mechanism as an effective tool for resolving cross-border consumer disputes in the era of E-commerce

Purpose This paper aims to analyze the need to protect the interests of cross-border online consumers, the current framework in India for disputes arising through cross-border consumer transactions, its limitations and the way forward. Design/methodology/approach The research methodology adopted for this research paper is doctrinal. It involves analyzing primary sources, such as statutes, case laws and legal provisions, along with secondary sources, including academic journals, books and legal commentaries, to critically evaluate existing legal frameworks and identify gaps in addressing online dispute resolution (ODR) mechanism as an effective tool for resolving cross-border consumer disputes in the era of e-commerce. Additionally, articles, books, journals, reports and materials from websites, libraries and databases have been consulted playing a vital role in completing the research work. Findings Taking inspiration from the European Union (EU) and various recommendations/reports, India can meet the goals of low-cost and quick disposal in cross-border consumer disputes wherein the service provider and consumer are located in distinct jurisdictions. The most practical strategy to achieve unified legislation in this area is to offer a model law to all nations so that it may be implemented in each of them. Also, there is a need for a distinct platform to resolve conflicts through ODR, just like the EU ODR Platform. Further, NITI Aayog, in its report, also highlights the importance of ODR by providing the policy plan for implementing ODR in India. To maximize the benefits of integrating technology in dispute resolution, the government should take a proactive approach by leveraging new tools. However, it should also take a careful approach to minimize the related risks. Research limitations/implications Researching “Online Dispute Resolution Mechanism as an Effective Tool for Resolving Cross-Border Consumer Disputes in the Era of E-Commerce” faces limitations such as jurisdictional variability, rapid technological changes, limited data availability, diverse user experiences and language barriers. However, one of the most significant challenges is the potential bias in literature, which necessitates a critical evaluation and objectivity in research. Practical implications The practical implications of researching “Online Dispute Resolution Mechanism as an Effective Tool for Resolving Cross-Border Consumer Disputes in the Era of E-Commerce” include improving the efficiency and accessibility of dispute resolution for consumers and businesses, fostering trust in e-commerce and promoting cross-border trade. Effective ODR mechanisms can reduce the time and cost of traditional litigation, enhance consumer protection and provide a standardized approach to handling disputes internationally. This research can inform policymakers, legal professionals and researchers, and it also highlights the crucial role of stakeholders in developing robust legal frameworks and technological solutions to support fair and transparent ODR systems. Social implications The social implications of researching “Online Dispute Resolution Mechanism as an Effective Tool for Resolving Cross-Border Consumer Disputes in the Era of E-Commerce” are profound. They include increased consumer confidence in online transactions, enhanced access to justice and the promotion of global digital inclusion. Effective ODR mechanisms play a crucial role in fostering trust in e-commerce, which is essential for the growth of the digital economy. More importantly, they empower consumers, especially those in remote or underserved areas, by providing accessible and efficient dispute resolution. This empowerment encourages more inclusive participation in the digital economy and supports social equity by ensuring that all consumers have the means to resolve disputes fairly and transparently. Originality/value The paper focuses on a rapidly evolving area at the intersection of law and technology. By addressing the unique challenges and opportunities presented by cross-border e-commerce, this research contributes novel insights into improving ODR systems, fostering international consumer protection and enhancing global trade efficiency. It fills a gap in the existing literature by providing a comprehensive analysis of the legal, technological and practical aspects of ODR, offering valuable recommendations for policymakers, businesses and legal practitioners. These recommendations are not just theoretical, but practical, empowering the audience with the tools to navigate the complex landscape of cross-border e-commerce.