Introduction
The UNCTAD recently came up with a report titled ‘Technology and the Future of Online Dispute Resolution Platforms for Consumer Protection Agencies (UNCTAD/TCS/DITC/INF/2023/5).’
The report not only explores the impact of technology on the future of ODR platforms, particularly in relation to consumer protection agencies, but also highlights how the existing system runs in certain member states and how it can be further improved. (For Instance, in Brazil’s National Consumer Secretariat (SENACON), more than 90 percent of disputes are successfully resolved through online channels within 5 days and without the need for direct involvement from SENACON. This system not only saves valuable time to consumers but also saves State’s resources.)
The report discusses some most well-known emerging technologies potentially applicable to online dispute resolution platforms for consumer protection.
Blockchain and Distributed Ledger Technologies (DTL)
Blockchain technology has gained substantial attention for its potential applications in ODR platforms. However, it remains one of the most controversial and least explored technologies within the ODR space.
Blockchain is an open and public distributed ledger that employs a proof of work (PoW) consensus mechanism, using bitcoin (the token) as part of its economic incentive system. These fundamental features endow Bitcoin with its primary attributes, including decentralization, immutability, transparency, peer-to-peer interactions (without intermediaries), borderless operations, and permissionless access.
The immutability and transparency of blockchain technology make it an attractive option for ODR systems. By leveraging smart contracts, ODR systems can automate the resolution of disputes and facilitate secure, trustless transactions between parties. For instance, a smart contract could be used to automatically disburse funds to a consumer once a dispute has been resolved.
Artificial Intelligence (AI)
AI is a broad and intricate field with a fundamental goal of replicating human cognitive and decision-making abilities to solve complex problems. AI projects often focus on addressing challenges that demand various levels and facets of human intelligence. Its adaptability and versatility make AI relevant and valuable in diverse fields and industries.
In the context of ODR, the potential of AI is significant, especially in addressing current challenges such as the shortage of human resources for tasks that are not easily automated. AI technologies have the capacity to automate repetitive and predictable tasks, allowing human resources to be allocated to more intricate and nuanced matters. Moreover, AI can play a crucial role in analyzing vast datasets to identify patterns and trends, providing valuable insights that can inform decision-making within dispute resolution processes. This can enhance the efficiency and effectiveness of ODR systems.
However, implementation of AI in ODR may face some challenges and risks such as:
- Ensuring privacy and data security.
- Balancing automation and human intervention.
- Ethical concerns such as fairness, bias, and the potential for unequal access to justice.
These concerns can be addressed by acknowledging and addressing these challenges followed by evaluation and refinement of AI systems in the context of ODR.
Collaboration between AI experts, legal professionals, and consumer protection agencies is vital for designing AI systems that cater to the unique requirements of ODR and address concerns such as privacy, data security, and ethical considerations.
Chatbots
Chatbots are computer programs created to engage in natural language interactions with humans, typically through the internet. Like any computer program, the definition and capabilities of chatbots evolve as technology advances and new features become available.
At its most basic level, a chatbot can be designed using a rules-based approach, where it is programmed with a predefined set of responses for specific user inputs. In this approach, the chatbot selects an appropriate pre-written response from a database or a set of options based on the user’s input, without employing artificial intelligence (AI) techniques.
Chatbots can be used in ODR to provide users with automated assistance in navigating the dispute resolution process such as:
- Triage and classification
- Information gathering and case initiation
- Status updates and reminders
- FAQ and self-help
By automating these functions, chatbots can help to reduce the workload of human case managers and improve the speed and efficiency of the dispute resolution process. Additionally, chatbots can provide users with 24/7 access to dispute resolution information and support, improving overall accessibility and user experience.
When incorporating chatbots and other technologies into dispute resolution systems, it’s crucial for developers and consumer protection agencies to proceed with caution.ensure that the chatbot’s knowledge base is properly trained and updated to reflect the current laws and regulations governing consumer protection in their respective jurisdictions. Additionally, it is important to provide consumers with access to human experts who can review and verify the accuracy of information provided by the chatbot, thereby mitigating potential risks and enhancing the overall effectiveness of the system.
Conclusion
The future of ODR platforms for consumer protection agencies is extremely promising, with a variety of new and emerging technologies that have the potential to enhance the efficiency and effectiveness of these systems.
However, several challenges exist, such as a lack of technological expertise, budget constraints, and legal framework gaps in many countries. A potential solution to address these challenges is a collaborative effort between United Nations member states and the private sector. This collaborative initiative aims to develop an open-source software that can be customized to meet the specific needs of different countries and consumer protection agencies. The primary goal of this software is to provide an adaptable, free ODR platform that can be implemented by various member states’ consumer protection agencies, enabling them to efficiently resolve disputes and protect consumers.
Establishing a shared framework and standards promotes commonalities among systems, enabling interoperability for cross-border cases. This enhances the accessibility and effectiveness of ODR platforms on a global scale, ultimately improving consumer protection and dispute resolution services for citizens worldwide.
