Bricks and Clicks: Online Dispute Resolution Mechanisms and Implementation of Online Arbitration in Turkey for Cross-Border Business to Consumer E-Commerce Disputes

Abstract

The lack of effective legal remedies builds barriers before business to consumer (hereinafter B2C) electronic commerce. In this regard, online dispute resolution (hereinafter ODR) mechanisms remedy this need through offering alternative ways to craft a more reliable market by increasing the confidence of consumers to enter into cross-border electronic commerce. With this feature, ODR mechanisms accord Turkey valuable opportunities to attract more businesses and consumers. Particularly, within the ambit of arbitration, online arbitration may be more easily implemented in Turkey because the current arbitration regulations of the country satisfy the necessity international standards that are sought for efficient and efficacious arbitration procedure. There are, of course, some challenges to online arbitration, such as arbitrability, enforceability, and determining a lex arbitri. These issues mainly arise out of courts’ efforts to interpret laws in a way most favorable to consumers. As an initial step to promote online arbitration, arbitral institutions may incentivize this mechanism via their rules. Further, to broaden the scope of Turkish institutions’ availability to cross-border users, negotiations for Turkey’s accession to ODR platform provided within the European Union should be furthered.

Keywords: Online Dispute Resolution, Online Arbitration, Business to Consumer, Electronic Commerce, Cross-Border

JEL Classification: K00, K40