October 24, 2023

Online dispute resolution is the process of resolving conflicts using the Internet. It is taking place on various platforms and types in many nations. It is stated that the ODR systems in place now are early indicators of the global dispute resolution scene that will emerge in the Digital Age.

It is clearly evident that such a form of arbitration falls under the purview of online arbitration. When arbitration is done virtually, the involved parties must communicate via email regarding the choice of law, sign an online arbitration agreement digitally, identify the precise location of the computer system where the arbitration will take place, and decide where the arbitrator’s award will be signed. When we talk about “online,” we indicate that communication is happening through an electronic channel, namely the Internet.

Online Dispute Resolution: Its Emergence


  • According to the experts in RJS Coaching institutes, with the growth of e-commerce, performing business operations over the Internet requires a stable system. ODR provided a fix for this issue.
  • eBay launched an experiment project in 1999 to offer online dispute resolution services for disagreements between buyers and sellers who were using its online marketplace.
  • By 2010, eBay’s ODR technology was managing more than sixty million complaints annually.


  • ODR’s progress and the proliferation of ODR platforms were spurred by this model’s success and the internet’s explosive growth. In 1999, a total of twenty-one new ODR programs were introduced.
  • A small number of well-run platforms, such as the Mediation Room, Smartsettle, and Cybersettle, have had a significant influence on the dispute resolution industry.


  • Government interest in the latest addition to the dispute resolution environment was piqued by the achievement of a few of the private ODR platforms.

Online Dispute Resolution: Advantages

According to various RJS Coaching institutes, the ODR has numerous advantages as well. They are:

  • Through reduced case resolution times and the elimination of the requirement for legal counsel in some situations, alternative dispute resolution (ODR) offers the potential to lower legal expenses.
  • ODR promotes rapid settlement in a flexible and informal manner as opposed to the inflexible court procedures that have been in place for decades. It does away with the requirement for travel and schedule synchronization.
  • ODR tools, which reduce the adversarial and complex nature of the dispute resolution process for the parties, are based on cooperatively reaching an agreement. Examples of these tools include online negotiation and mediation.
  • ODR is able to be accessed at any time and from any location with internet access, depending on the parties’ needs and convenience.
  • One of the most frequent issues in Indian courts is now the ODR method, rather than document storage.

Online Dispute Resolution: Disadvantages

According to various RJS Coaching institutes, the ODR has numerous disadvantages as well. They are:

  • A strong national technological infrastructure is a requirement for ODR integration. Inadequate regulations of this kind are likely to hurt people with less access to digital infrastructure.
  • About 38% of Indian households, according to the Ministry of Electronics and Information Technology, are computer literate. Thus, there is a demand for both targeted activities to popularize the fundamental skill sets needed for using ODR services and programs aimed at increasing internet connection in rural areas.
  • It covers online impersonation, data and document leaks during ODR proceedings, tampering with digital evidence, and digitally delivered agreements and awards.
  • The skepticism has multiple roots, ranging from doubts about technology to concerns about the enforceability of ODR decisions.
  • Whether through an independent mutual agreement or an express contractual stipulation, the parties must agree in order to initiate the ODR procedure. Without this, any impartial decision reached will not be legally valid or enforceable against the parties.

Conclusion and Recommendations

Even while recent reforms have put India on the right path, we still need to promote the use of ODR as a fundamental dispute-resolution process. ODR enforcement must be increased in view of the rise in transactions via the Internet. To accomplish NITI Aayog’s assertion that India has the perfect opportunity to become the hub of advances in Open and Distance Rendering, we need to address the issues of funding, infrastructure, and governmental support. Some of the recommendations are as follows:

  • Globally, the first step that needs to be taken is the enactment of a distinct legislative framework.
  • Security measures are to be implemented in ODR, with a focus on avoiding over-reliance on IT principles as each nation has its own set of rules tailored to its own needs.
  • A distinct online arbitration process ought to be started.
  • People are conscious of the ODR mechanism as a useful instrument for conflict resolution.
  • A suitable infrastructure should be started with foundational support from conventional arbitration principles in order to ensure an appropriate and efficient process of ODR.
  • For ODR to be successful in India, specialized institutions that can offer instruction, research, training, and policy are required.

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