Before this, imports equal to or less than €22 were exempt from VAT.

AliExpress has announced that it will be collecting VAT from its EU customers for orders equal to or less than €150 and £135.

This might affect your shopping experience and e-commerce business significantly.

Here’s everything you need to know about AliExpress VAT for EU and UK consumers.

If you’re from the United States, here’s your guide to AliExpress Sales Tax and refund policy.

Get educated on other popular services and your rights such as eBay, Shein, AliExpress, Alibaba, Airbnb, Freelancer.com, Upwork, Tesla, and PayPal.

Key Terms You Need To Know

Value-Added Tax (VAT)

VAT is a consumption-based tax that applies to all goods and services, both tangible and intangible, traded for consumption within the borders of the European Union.

It is only applicable to individuals who are importing for their own consumption. People who make imports on behalf of the company they work at for example are exempt from the VAT collection by AliExpress.

That is to say, all goods imported to the EU from a foreign seller or a foreign marketplace are subject to VAT, whereas goods exported to customers outside the EU are not normally subject to VAT.

The tax is paid by the consumer, also known as the buyer, but the seller is considered the “taxable person” because they are responsible for remitting the collected taxes to the concerned tax authorities.

VAT is collected in every transaction made before the final product reaches the final consumer.

Buyers who’ve paid VAT when buying raw materials can deduct the amount they paid when they sell their products. This process is referred to as fractional collection of VAT.

It is meant to ensure the neutrality of the tax regardless of how many transactions are involved.

The Import One-Stop Shop (IOSS)

The IOSS was launched for e-commerce businesses and sellers to collect, declare, and remit their VAT obligations for online sales of imported goods.

As of 1 April 2021, EU member state businesses can register on the IOSS portal and obtain the IOSS VAT identification number. The IOSS number consists of 12 alphanumeric characters.

Businesses outside the EU member states will have to appoint and EU-established middle main to finish the VAT requriements on there behalf.

This electronic portal is targeted at electronic sellers and marketplaces, such as AliExpress, that have customers in the European Union.

When the seller doesn’t use IOSS, the buyer has to pay the VAT and a customs clearance fee.

SOLVIT

For all disputes and problems regarding VAT, taxpayers are advised to have recourse to means of redress such as SOLVIT.

SOLVIT is an online service provided by the EU, Iceland, Norway, and Liechtenstein with the goal of reinforcing your rights as an individual or a business.

It aims to resolve any VAT-related issues and find solutions within 10 weeks.

AliExpress VAT rules for packages Imported into Europe

As of July 2021, AliExpress has started collecting VAT on all orders shipped to a member state of the EU.

If you live in the EU, you will see “VAT added at payment” under each item on AliExpress.

However, the VAT can be included in the price by the seller. In this case, you shouldn’t pay any extra taxes.

If the seller doesn’t explicitly state that the VAT is included, contact them and inquire about any taxes or customs duties that you have to pay.

The VAT rates vary depending on each member state. The European Commission states that each state has standard and reduced rates.

Standard EU VAT rates apply to all non-exempt goods and services, and it stands at a minimum of 15% of the taxable amount (article 98 of the common system of value added tax)

There is no maximum for the standard rate, and each member state is free to set its own.

Find your country’s detailed standard and reduced VAT rates in the European Commission’s VAT rates list.

When it comes to reduced rates, member states can apply one or two, and they must be equal to or above 5%.

These reduced rates are only applicable to eligible goods and services listed below (Annex III)

AliExpress VAT rules for packages Imported into The UK

Importing goods into the UK from a foreign state may require you to pay VAT. The goods you import from AliExpress determine whether you should pay VAT at all, and if so, at what rate.

Just like in the EU, some goods are subject to standard VAT rates whereas others are eligible for reduced VAT rates in the UK.

What’s more, the UK also has zero rates for certain goods.

In the UK, most AliExpress products are subject to a 20% VAT rate as a standard rate. The reduced VAT rate is equal to 5% and it’s only applicable to certain goods such as children’s car seats, artworks, and artifacts.

Products such as foods and children’s clothes are exempt from the VAT and are eligible for a zero rate VAT.

When shopping at AliExpress from the UK, you will be required to pay your VAT obligations if your order is equal to or less than £135.

£135 is also the threshold at which UK citizens are required to pay customs duties for their imports.

For orders that exceed £135 of value, the buyer will be required to pay VAT in addition to customs duties, which are only applied on imports that are over £135.

Yet while VAT is not collected for orders under £135, UK citizens will still be required to do customs clearance.

The New VAT for Europeans: What Has Changed For AliExpress Shoppers?

The new EU VAT rules bring changes to your shopping experience at AliExpress, such as faster and easier imports and less involvement of customs in orders less than €150.

Prior to the latest VAT regulations, EU shoppers paid VAT only on items that were equal to or more than €22.

To verify that your items are exempt from VAT based on their value (less than €22), the authorities had to do customs clearance where they ensure that the imported goods are legal and correctly valued.

The new VAT regulations abolished the €22 threshold, making all imports subject to VAT.

AliExpress, however, will not collect VAT on orders that are equal to or above €150.

The shopper will have to pay their VAT plus customs duties for orders equal to or above €150 at the time of import. Otherwise, the packages may be detained by the customs authorities.

And following the new regulations, all AliExpress sellers are now required to include the AliExpress IOSS number in their import declaration into the EU.

When AliExpress sellers add the IOSS number to your package, the customs will not detain them nor will they charge you with VAT or any other customs fees.

What If AliExpress Orders Are Shipped From EU and UK warehouses?

AliExpress has warehouses in several EU countries with the help of Cainiao, the majority-owned logistics company. There are currently AliExpress warehouses in Spain, France, Poland, the Czech Republic, the UK, Germany, and Italy.

Orders shipped from AliExpress EU warehouses are subject to VAT. This is because while the selling point is within the EU, the sellers are still non-EU citizens and traders.

Orders shipped from AliExpress UK warehouses are also subject to VAT since the seller is a non-UK citizen.

AliExpress Refund Policy: Is VAT Refundable?

There are many reasons why you might request a refund at AliExpress. Such reasons could be not receiving your order on time, not receiving your order at all, receiving a mismatched or damaged order, or receiving a counterfeit product.

Generally, you and the seller can agree to make a refund, either partial or full, without the involvement of AliExpress.

If you fail to reach an agreement on the amount of refund or if a refund is possible at all, you can escalate your claim to AliExpress.

To request a refund on AliExpress, you should:

• Initiate a dispute by selecting the concerned order and clicking “Open Dispute” from the “My Orders” page.
• You and the seller negotiate an agreement.
• If no agreement is reached, AliExpress Case Management Team will intervene to study your dispute.
• The Case Management Team will generally reach a resolution within 48 hours.

If you need more information in this regard, check our detailed guide on AliExpress disputes how to win every AliExpress dispute.

But will you get a VAT refund on AliExpress?

If AliExpress determines that you are eligible for a full refund, you will receive the total amount that you have paid at checkout, including any VAT.

However, any taxes or duties incurred by the customs or the logistics company are not refundable by AliExpress.

If you are eligible for a partial refund, the amount you receive may or may not include the VAT you paid. You will be able to set the amount of your claim before initiating the dispute, so make sure you cover your VAT too.

How To Get a VAT Refund If You Were Taxed Twice by AliExpress and Local Customs?

When you pay VAT at check-out on AliExpress, you are automatically exempt from paying any additional taxes or duties to your local customs when you receive your packages.

Remember that this is only true for orders under €150 in the EU and £135 in the UK.

If your customs charged you VAT after it was collected by AliExpress, you are entitled to a refund by AliExpress.

To get a VAT refund on AliExpress, you should:

• Contact AliExpress customer service
• Provide the invoice of import VAT issued by your logistics provider
• Provide proof of payment of that invoice (that you have paid VAT to your customs)
• Provide any customs documentation on the release of goods and the shipping label of the package

Conclusion

AliExpress is now collecting VAT on behalf of tax authorities in the EU and UK. However, for orders equal to or above €150 in the EU and £135 in the UK, AliExpress will not collect any VAT.

In this case, the buyer is required to pay VAT and any other customs duties upon the arrival of their packages. They are also responsible for customs clearance.

VAT rates in the EU range from 17% in Luxembourg to 27% in Hungary with reduced rates reaching 5% for eligible items.

In the UK, VAT is set to 20% on almost every imported package from outside of the UK.

Moreover, orders shipped from EU and Uk warehouses are also subject to VAT because ALiExpress, is considered a foreign seller.

AliExpress might include the VAT amount in the item’s price or notify you that you will be charged a given VAT rate at checkout.

To avoid any ambiguities or misunderstandings, always contact the seller before making any payments.

The post Everything About AliExpress VAT in the EU and the UK appeared first on ODR Guide.

State sales tax has been gradually implemented in different states. This tax is collected by foreign sellers such as AliExpress from American consumers.

There are currently 45 states in the US that impose the sales tax. In some cases, these taxes can affect your shopping experience drastically.

Luckily, even if you live in one of the 45 states that impose this tax, you are only charged sales tax if Alibaba Group has a sales tax nexus or economic presence in your state.

Here’s everything you need to know about AliExpress sales tax for US shoppers and how to avoid it.

If you are in the UK or European Union, you may refer to Everything About AliExpress VAT in the EU and the UK and for a refund guide AliExpress Refund FAQ: Tips On How To Successfully Get a Refund.

While you’re at it, here are some comprehensive guides to a safe and successful AliExpress and Alibaba shopping along with a comprehensive reply to the most common Q&As in AliExpress Disputes: A Comprehensive Q&A guide.

TIP: Always keep your business Taxes clear and do not be afraid for seeking assistance in your TAX submissions and legal forums.

VAT Vs. State Sales Tax: Is It the Same Thing?

VAT, short for Value-added Tax, and state sales tax have as many similarities in common as differences.

Both state sales tax and VAT are taxes imposed on merchandise purchased from a foreign seller or marketplace i.e those outside the consumer’s country.

VAT is the worldwide imposed tax on purchases from a foreign seller. More than 170 country requires VAT collection from all foreign sellers.

The US, however, is not among the 170 countries. In fact, it doesn’t have a national tax on goods purchased from a foreign seller or marketplace.

What it has, however, is a tax imposed at the state level known as state sales tax. 38 states have local sales taxes, and 45, in addition to Washington DC, have state sales tax.

The rates of VAT and state sales tax vary greatly. Because VAT is adopted at the national level, it generally has a fixed rate. State sales tax changes almost yearly and varies between the states.

The major difference between VAT and state sales tax is who pays the tax. 

State sales tax is collected from the final consumer only. Businesses involved in the selling process, such as resellers, are exempt from paying this tax.

Conversely, VAT is collected from each transaction leading to the final consumer.

What is Sales Tax Nexus?

Sales tax nexus is when a foreign business has a significant economic presence in a state that has a state sales tax.

The significant economic presence can be in the form of physical presence, employees or salespeople, drop shippers, or inventories.

If a foreign business has any of these factors of economic presence or nexus in a state, they are required by that state to collect sales tax from US consumers.

AliExpress and Alibaba, AliExpress’s parent company, certainly have an economic presence in the US. AliExpress has warehouses and drop shippers all over the US, while Alibaba has U.S sellers and small businesses.

Therefore, they are required to collect sales tax.

It is noteworthy to know that unless your state has an AliExpress nexus, you will not be charged a sales tax on your AliExpress orders. This is true even if your state is one of the 45 states that have state sales tax.

What Are the Rates of State Sales Tax?

If you don’t live in Alaska, Delaware, Montana, New Hampshire, or Oregon, you probably have to pay sales tax when shopping from AliExpress. Find 2021’s sales tax rate in your state in the following table.

Generally, the sales tax you would pay is calculated by multiplying your purchase price by the tax rate. 

Note that the rates in the table above are the base rates, which means these are the minimum rates applicable by your state.

Your state’s sales tax rate can increase depending on the type of goods you’re ordering from AliExpress. 

Some states exempt you from the tax if you’re buying groceries, prescription drugs, feminine hygiene products, or intangibles, such as Arizona, California, Florida, Iowa, Michigan, and more.

Other states exempt you from the sales tax if your order is under a certain value and in an eligible category of goods such as clothing.

Examples of these states include Massachusetts with a threshold of $175, New York $110, and Rhode Island $250.

Because all states have different regulations, there’s an exhausting list of exemptions based on the goods type of the purpose of the purchase.

It is best to learn about your state’s regulations before making any huge order from AliExpress.

There are other taxes that might incur besides state sales tax, such as customs import duties, import taxes, and others.

The best way to not end up paying more in taxes than your purchase’s value is to be well aware of what you’re owed in taxes and duties.

AliExpress Sales Tax Exemptions

Some people and organizations are exempt from paying sales tax. 

As explained earlier, sales taxes are only paid by the final consumer. This is good news for small businesses and resellers because they will not be charged sales taxes when shopping at AliExpress.

Moreover, many states exempt charitable, religious, and diplomatic organizations from sales taxes.

Resellers that are eligible for sales tax exemption must provide an exemption certificate. The certificate must be approved by the state in which they operate.

Luckily, 38 states approved a Uniform Sales and Tax Resale Certificate.

When Shopping at AliExpress, you can provide this exemption certificate in order to not be charged the tax.

You might also use it to get a refund after you are charged the tax by contacting AliExpress Customer Support.

AliExpress Sales Tax: How It Works

AliExpress is required to collect sales taxes from US consumers who live in the 45 states that impose this tax since it’s a China-based marketplace.

Sometimes, the sales tax is included in the price or the shipping fees set by the seller. Most often than not, however, the sales tax is not included in either the price or the shipping fee.

When the tax is not included by the seller, AliExpress will notify you of the sales tax and its value before checking out.

AliExpress is required by U.S law to collect sales tax, but if you checked out without paying any taxes, you might be required to pay them by the customs of the post office that delivered your order.

To avoid any complications or paying twice, ask your AliExpress seller about any taxes or customs duties that you need to pay. Make sure whether the tax is included in the total of your order or if it will be collected by AliExpress at check-out.

How Does AliExpress Collect Sales Taxes?

Like VAT, sales taxes will be collected automatically by AliExpress. You will not have to do anything from your end if everything goes smoothly. Every time you make a check-out, the tax will be collected by AliExpress if not included in the item’s price by the seller. 

What if I order a product from a US warehouse on AliExpress?

AliExpress has several warehouses across the US. When ordering products from a US warehouse, you might still be charged a sales tax for two reasons:

1. If you live in a state that requires AliExpress state sales tax collection
2. If the warehouse is located in a different state than yours. This is because state sales tax can be imposed on purchases between states.

Origin Vs. Destination Sales Tax

Origin sales tax and destination sales tax refer to which state’s rate is applied when an interstate purchase takes place, the seller’s or the buyer’s.

In the US there are 12 origin-based sales tax states: Arizona, California, Illinois, Mississippi, Missouri, New Mexico, Ohio, Pennsylvania, Tennessee, Texas, Utah, and Virginia.

If the seller is based in one of these states, he collects sales tax at the rate of his state.

If the seller is based in a destination-based sales tax state, all states except the 12 aforementioned ones, he collects sales tax at the rate of the buyer’s state, the destination of the order.

However, sellers are only required to collect taxes if they have nexus in the buyer’s state.

While you may avoid paying customs import duties, you might still be charged sales tax when buying from an AliExpress US warehouse.  You might be also charged local sales tax in addition to state sales tax.

Why am I charged sales tax on AliExpress?

AliExpress is required by some states to collect state sales tax from US consumers. This sales tax will be remitted to the concerned state’s authorities.

How to Avoid Sales Tax on AliExpress?

If you live in a sales tax state and you are not a reseller, you might still be able to avoid paying sales tax. To avoid paying sales tax on AliExpress:

• Consider shipping your order to a no-sales tax state because AliExpress does not collect taxes on their behalf.
• Check if your state has an AliExpress or Alibaba nexus. If not, you will not be required to pay a sales tax.
• If you live in one of the states that have a threshold value for sales tax, such as Massachusetts, New York, and Rhode Island, try to keep your orders under that threshold in order to avoid paying the sales tax.

AliExpress Customs Import Taxes

All orders from AliExpress, i.e China, are imports that are regulated by the U.S Customs and Border Protection (CBP). The import duties and taxes vary depending on what you’re importing and its value.

The good news is, that there’s a value threshold for the import duties to be collected from you. AliExpress Imports below $800 will not be taxed by the CBP.

When your order is less than $800 per day, you will be exempt from paying sales tax in AliExpress. This includes all your purchases in a single day. If your order is shipped in more than one package or box, the customs might open them to verify their value and whether they exceed $800.

Other duties and fees might be charged by the CBP depending on your item, its value, and weight.

All duties and fees are paid at the post office that delivered your packages.

Customs Import Taxes on Gift Packages

According to US CBP, Imports marked as gifts for someone other than the buyer are exempt from customs duties if their value does not exceed $100.

Conclusion

AliExpress is required by many states in the US to collect sales tax from American consumers who make purchases on the marketplace.

Currently, there are 45 states that impose collecting states sales tax on foreign sellers. However, only sellers with nexus in the concerned state are required to collect taxes.

When buying from AliExpress, you will be charged a sales tax if you reside in one of these states. 

The sale tax might be included in the price or shipping fee by the seller. It might also be charged directly by AliExpress before your check-out.

In addition to sales tax, you are required to pay customs import duties if your order exceeds $800.

You can avoid paying sales taxes at AliExpress by shipping your item to a state that doesn’t impose state sales taxes or a state with very little AliExpress economic presence.

The post AliExpress Sales Tax: Everything You Need to Know appeared first on ODR Guide.

When a dispute arises between a host and a guest, Airbnb allows the two parties to work out a solution together. If they fail to reach an agreement, they go through Airbnb Resolution Center (ARC).

Moreover, disputes that were not successfully resolved may end up in binding arbitration or courts. For this, they set country-specific dispute resolution processes.

This article is your guide to everything related to Airbnb’s dispute resolution. Keep reading if you are an Airbnb user! PS: If you are considering legal action (as we will discuss) later, you may obtain forms and assistance from here.

You may also check out these other guides of dispute resolution in AliExpress, Alibaba, Shein, Amazon, Upwork, Freelancer.com, Paypal, and eBay.

The Process of Dispute Resolution: How Airbnb resolves disputes?

Airbnb encourages amicable dispute resolution between guests and hosts through their message thread. Such disagreements can arise due to host damages, refund requests, payments or guest experience.

When the two parties fail to reach an agreement within 72 hours, one of them can request mediation by Airbnb.

Requesting Airbnb’s mediation takes place in the resolution center within 60 days of the reservation’s checkout date. The Airbnb customer service will review the communication and transactions history as well as any supporting documents then issue a decision.

Luckily, if the mediation decision is not satisfactory, you may appeal it. This process is region or country-specific. This means the process changes depending on where you live: USA, EEA (Plus Switzerland and UK), or China.

Here’s how Airbnb resolves disputes in:

Airbnb disputes the United States

1. Mandatory pre-arbitration dispute resolution:

Informal negotiation with Airbnb is a mandatory stage in which you are required to negotiate and discuss the dispute through their customer service at least 30 days before initiating the arbitration. US-based users are required to send a notice of the dispute to Airbnb by mail and receive a notice from Airbnb at their address.

If parties are unable to reach an agreement within 30 days, they proceed to the next stage. Both parties are allowed to seek relief in a small claims court instead of arbitration.

2. Binding Arbitration with AAA:

Parties can initiate arbitration with the American Arbitration Association. This can take place via the phone, video conference, by paper, or in person. When it comes to fees, you will pay your arbitration fees and the arbitrator’s fees as stated by the AAA consumer rules.

Airbnb might pay all the arbitration fees and expenses if the arbitrator determines your fees are excessive. The award of the arbitration is binding.

Airbnb disputes in the European Union, Switzerland, and UK

If you believe Airbnb mediation team mishandled your dispute, you can appeal it by contacting customer service. If the result is unfavorable, you might take your complaint to the European Commission’s online dispute resolution.

However, Airbnb clearly states that they are not committed nor obliged to use this ADR platform to resolve disputes.

EEA, Switzerland, and UK users have the right to file a claim against Airbnb in a court in your country or an Irish court.

Airbnb disputes in China

1. Transactions within China: Arbitrating with CIETAC

Chinese users of Airbnb China can submit disputes against Airbnb to the China International Economic and Trade Arbitration Commission (CIETAC). Moreover, the tribunal must consist of three arbitrators and take place in Beijing. The arbitration award is binding and non-appealable.

2. Cross-border transactions: Arbitrating with SIAC

Disputes arising between Airbnb and Chinese citizens who use Airbnb services other than Airbnb China must be submitted to the Singapore International Arbitration Center (SIAC).

The sessions must take place in Singapore and three arbitrators must preside over them.

Detailed coverage on Arbitration and dispute resolution in China can be read in Online Dispute Resolution in China: The Ultimate Guide of ODR Platforms and E-Courts.

Expected Costs of Airbnb Dispute Resolution

US users arbitrating with AAA should expect to pay $200 in consumer case filing fees. Other fees including case management fees and the arbitrator’s compensation are paid by the business, Airbnb in this case.

Chinese users arbitrating with CIETAC should expect to pay at least $15 as a registration fee and a handling fee of at least $928.

Chinese users arbitrating with SIAC should expect to pay $1745 as a case filing fee, at least $2807 as administrative fees, and arbitrator’s fees of at least $4,618 for a single arbitrator excluding taxes.

Airbnb Guest Refuses to Pay Claimed Damage: What Should You Do?

In the instance where you suffered some property damage because of a guest’s stay, you request to have the damages compensated by the guest.

If all negotiations with the guest fail, and he/she refuses to pay after 72 hours, you must escalate the dispute to Airbnb through their resolution center.

Depending on whether you charge security deposits or are covered by Airbnb Host Guarantee, you should expect these three scenarios:

1. Involve Airbnb by escalating the dispute to them. The guest might accept the solutions put forward by Airbnb’s customer service.

2. If you charged the guest a security deposit, you can request to collect it within 14 days after the guest’s checkout.

3. If you didn’t charge a security deposit, but you are eligible for Airbnb Host Guarantee, you should submit a host guarantee payment request form in addition to damage evidence.

You have a maximum of 14 days to submit this request after the guest checks out or before the next guest checks in.

Airbnb Security Deposit: Should You Charge?

A host can charge a security deposit of $100 to $5000, which means guests have to deposit the required amount before checking in. But charging deposits may not be a 100% positive choice.

Depending on your priorities and experience, charging deposits can be a hit or miss. While security deposits indeed give a sense of security, they might be affecting your occupancy rate.

This is because many guests will avoid booking your place it.

If you are a super host who is enjoying a high occupancy rate and great reviews, charging security deposits might not affect you negatively. Conversely, it might be a great way to prevent disputes of refunds.

If you prioritize your occupancy rate and are relatively new to hosting, you may want to slow down before charging deposits. In the end, it all depends on your own choices and circumstances.

Airbnb Dispute Resolution Center: Expected Time to Resolve a Dispute

Guests are allowed a period of 72 hours (three days) to respond to your dispute during the amicable negotiation. After involving Airbnb, the time it takes to resolve the dispute varies depending on the severity of the claim, the evidence, and the means of contact.

Disputes involving large amounts of money take longer to resolve. Likewise, having conclusive proof accelerates the determination process.

Moreover, hosts on the Community Center find that calling Airbnb customer service speeds up the resolution process.

Airbnb Insurance: Host Protection Insurance

Unlike Airbnb Host Guarantee that covers damages to your property, the Host Protection Insurance protects you from liability to injury or property damage claims filed against you by hosts or other people staying in your home.

This insurance policy guarantees up to $1 million of protection, and you don’t need to do anything to benefit from this service.

All hosts who gave agreed to Airbnb terms of service and have created listings are automatically eligible for this insurance. This excludes hosts in China and Japan and hosts of experiences.

Damages and injuries including intentional crimes, loss of income, sexual assault, and others will not be covered by this insurance.

The insurance claim goes as follows:

1. Intake form completion: You should download the Insurance Program Intake Form, fill it, and submit it

2. Claim review by an insurance Adjuster: the adjuster will contact for details of the claim.

3. Claim investigation by the adjuster: the adjuster investigates and settles the claim in accordance with the terms of the Host Protection Insurance policy and applicable law.

Suing Airbnb in Small Claims Courts

While agreeing to Airbnb’s terms of service waves your jury trial and class-action lawsuits rights, you still have the to suing them in courts.

As long as your disputed amount equals or is less than $10,000 ($27,664 in Canada, £10,000 in England and Wales, £5000 is Scotland, €5000 in EU), you can file a suit in a small claims court.

Small claims courts are usually more affordable and faster than other courts. So you should expect to pay a minimal amount for filing the case and other administrative fees. You may also consider talking to a lawyer beforehand.

Winning a case gives you the ability to reimburse all the fees from Airbnb. Losing, however, does not require you to pay anything more.

The most common claims raised in small claims courts against Airbnb are refused refunds, uncompensated property damages, extra fees, and booking cancellation.

Therefore, if you believe you are a victim of one of these, you should consider using them. Here’s the full process:

1. Send a demand letter

A demand letter is a means of requesting money or property from the sued party, Airbnb in this case. It shows your intent to sue them if they don’t compensate you.

While this can be expressed via a text message or email, a letter is the best option. This demand letter should include your personal info, the amount of money you owe, reasons and evidence, payment details, and deadline. You should mail this to Airbnb.

2. Complete the plaintiff’s claim form

This might differ depending on the court where you are suing Airbnb. You can find the complaint form on the court’s website along with any other required forms.

You should fill the form and file it following the court’s rules. Filing fees must be paid when the claim form is filed.

3. Serve the lawsuit to Airbnb

This is where you let Airbnb know that you filed a lawsuit. This requires sending copies of the filed papers to them in any way you choose.

Conclusion

Going through Airbnb Community Center and other forums revealed that getting compensated by Airbnb or by the host is heavily dependent on how strong your evidence is.

The Airbnb Resolution Center offers a fast and easy way to resolve disputes yet it has no power to enforce its solution on either guests or hosts. Therefore, it might not be as effective as you would wish it to be.

The best way is to stay ahead of disputes by taking preventive measures such as having insurance, charging deposits, and being eligible for Airbnb Host Guarantee.

However, If you are unable to prevent disputes, you might consider arbitrating your claim with Airbnb or suing them in a small claims court.

The post Airbnb Dispute Resolution: The Only Guide You Need appeared first on ODR Guide.

So what should you do if you fell victim to a scam or faced an unpleasant experience such as not receiving your order?

Luckily, there are a few things you can do to get a refund or a return from Shein, and this guide will show you exactly how.

Check these guides on how to open and win disputes on e-commerce giants and platforms including AliExpress, Alibaba, Shein, Airbnb, Paypal, Freelancer.com, Amazon, and eBay.

Shein Policy on Online Dispute Resolution

When it comes to adopting ODR, Shein lags behind significantly compared to other e-commerce websites. Here’s a summary of its policy in the US, EU, UK, and Asia.

1. The United States:

Users and consumers in the United States are the only exceptions when it comes to online dispute resolution with Shein. When disputes related to Shein services or terms, US citizens are invited to follow these steps:

• Start the initial dispute resolution, which will take place via email. Shein prompts you to contact them at [email protected] to address any concerns. According to Shein, most disputes are solved in this stage. These negotiations cannot be skipped or avoided by either party.
• Agreement to binding Arbitration with Judicial Arbitration and Mediation Services (JAMS). If the initial dispute resolution does not succeed to resolve your claim within 30 days, either party can initiate arbitration with JAMS. If you initiate it, you will pay the filing fee that must not exceed $250.

Shein will pay any addition stated by JAMS as well as the arbitration expenses. Moreover, Shein will reimburse any portion of the $250 filing fee that is more than what you would otherwise have to pay to file suit in a court.

The award of the arbitration is binding.

To learn more about JAMS, you may read Your Quick Guide to JAMS ADR Platform: Mediation, Arbitration, and Dispute Resolution Services

2. European Union:

Although Shein features the European Commission’s Online Dispute Resolution Platform, it asserts that they will not participate in it whatsoever, “We are neither obliged nor willing to participate in dispute resolution proceedings before a consumer arbitration board.”

Therefore, if you are an EU citizen and wish to resolve any dispute with Shein, you should take your claim to the courts of Ireland or the country where you reside. In this case, you may consider talking to a lawyer for further action.

3. UK, Asia and India:

Similar to citizens of the EU, users and consumers from UK, Asia, and India cannot start any dispute against Shein through any consumer arbitration institution. Therefore, all claims against Shein must be taken to the courts of the UK, Singapore, and India respectively. In this case, you may consider talking to a lawyer for further action.

Shein Order Not Delivered: What To Do Next?

There are many scenarios of not receiving a Shein order but mainly either it is delivered but not received or never delivered in the first place. We will walk you through the step you need to follow in each case.

Shein Order Delivered but Not Received

If you received an email stating that your order has been delivered to you, but you did not receive anything, you need to:

– Get in touch with the customer service as soon as possible. Shein offers customer service through online chat, phone, or email. Try the online chat option first.

– Explain the situation to the agent and provide them with the delivery details and the tracking number.

– Choose whether you want a reshipment or a refund. The agent will ask you to confirm that you will inform them if the original order arrives.

– If you choose a refund, they will direct you to apply for a refund on the website. Be notified that shipping costs will not be refunded, and you will either pay for the return label or ship at your own expense (the return label costs $7.99 for US buyers, £1.99-£4.5 for EU buyers, and ₹65 for Indians). Read below to see how you can apply for a refund.

Shein Order not Delivered:

If your Shein package was not delivered by the delivery time set by the website, you should:

– Log in to your account and head to the “My Orders” page.

– Select the order in question and check its shipping and delivery details.

– If the order is shipped, you will be able to track it and view its status.

– If you cannot track the order whatsoever, contact the customer service as soon as possible and let them know you want to cancel the order and apply for a refund.

Applying for a Refund

In both scenarios, a refund is a viable option if you don’t want to wait longer for a reshipment or for your order to finally show up. However, you cannot apply for a refund like a regular return case.

If you don’t receive an order that has been shipped, you will not be able to cancel the order nor return it. This is why you have to contact customer service first and explain the situation to them. What you should do next depends on what they advise you to do. If they ask you to apply for a refund, you should:

– Select the order in question on your “My Orders” page

– You will see two options next to your order, track and return. Select return item and proceed as requested.

– Keep in contact with the customer service to properly navigate through the whole process.

– Inform them where you want to receive the refunded amount, your Shein wallet, or your payment account.

Bottom line is, with Shein, you really don’t have much choice when it comes to undelivered, unreceived, or missed orders. You should always get in touch with their customer service if you face any of these unfavorable incidents. Luckily, the multiple contacting options available make resolving issues easier.

Shein PayPal Purchase Disputes

If you use PayPal as your payment method when shopping from Shein, you can resolve payment and refund disputes easily through PayPal’s Resolution Center and benefit from their Buyer Protection.

PayPal Refund Disputes

If you purchased a Shein product using PayPal, but it didn’t arrive at all, you can open a dispute on PayPal and communicate with the seller amicably. If the seller does not refund you within 20 days, escalate a claim. Here’s how to do it:

– Go to the resolution center and select the dispute you wish to escalate.

– Select escalate to PayPal.

– Add any relevant information concerning your situation and submit it.

– PayPal will contact you via email for any updates.

This process usually takes 30 days or less. If you are covered by PayPal’s Buyer Protection, you will be refunded the whole amount plus the original shipping fees.

PayPal Return Disputes

If you are unsatisfied with an item you purchased on Shein via PayPal, but it’s defective or missing parts, PayPal gets your back too. You can return the product through PayPal and get a refund too. If you live in the US and are eligible for the Return Shipping on US service, you can ship the order back free of charge within the US.

Here’s how you can return your purchase through PayPal’s return label:

– Within 45 days from the purchase date, you should initiate the return process on Shein by selecting the return item from the “My Orders” page.

– You will receive return instructions from the customer service.

– Inform the service that you will return the order with PayPal’s shipping label. This means you will not use Shein’s $7.99 return label. You must be notified that your first return on any order will be free when you use Shein’s label.

– Head to MultiOrder shipping and click create new

– Add the required information such as the return address, which is given to you by Shein, and save them.

– Pay and print the label

– PayPal will send you a confirmation email that will include a tracking number. The same will be sent to Shein.

– Once the returned order is received by Shein, your return will be processed within 5 days, and you will receive your refund on your PayPal account.

The cost of the shipping label varies depending on the return address. The good news is you won’t be charged for the printing or the tracking.

Conclusion

When it comes to resolving disputes, Shein offers a very limited number of options. Other than returning defective products that take place directly on their website, they significantly rely on their customer service when it comes to refund, delivery, or payment issues.

Therefore, to receive a refund on a missing or unreceived order, you will need to contact Shein’s customer service to direct you to the process of a reshipment or refund then proceed as detailed above.

However, orders paid using PayPal will get extra options on refunds and returns.

The post Shein Order and Delivery Disputes: What To Do If Not Delivered! appeared first on ODR Guide.

With the dramatic growth of internet users, e-commerce markets, and online transactions comes a growing number of disputes. Traditional dispute resolution methods have proved deficient in resolving these disputes for drawbacks such as the location of the involved parties, long processing times, and high costs.

China is home to 989 million internet users, world-leading e-commerce giants worth 1.2 trillion dollars, 872 million users of e-payment methods. Parallelly, one would ask, what is the status of ODR providers in China? There are three internet courts, e-tribunals, and more than 30 online arbitration institutions in China.

For a foreigner, how can a business out of China initiate a commercial dispute against a Chinese company or business? To initiate an international commercial dispute with a Chinese party, apply to mediation via the International Commercial Expert Committee (CICC) or the China (Hangzhou) Intellectual Property and International Commercial Mediation Cloud Platform (CCPIT) or for arbitration via the China International Commercial Court or the China International Economic and Trade Arbitration Commission (CIETAC and CCPIT).

What are the expected arbitration costs in China? The minimum expected cost for arbitration in China is $3,100 and varies depending on the center and the disputed amount.

See the list below for cost breakdown:

1. Registration fees: (USD) $1,550 (Average ranges $15 to $930).
2. Center Fees: (USD) $1,550 plus percentage of the disputed amount (Could reach to a minimum of $2,000).

So, What are the expected time for arbitration in China? The average expected for arbitration in China is 4 months to 6 months. It is important to note that many factors such as the value and complexity of the dispute affect the expected resolution time.

Below is a summary of the main online mediation and arbitration providers in China and E-courts.

Covid-19 impact and the increase in e-commerce is also discussed in Online Dispute Resolution ODR in China and its future and The Impact of Coronavirus on Arbitration and ODR.

Speaking of online platforms, one of the rising causes of disputes are those related to cryptocurrency, check our analysis and information on this in How To Dispute a Crypto Transaction? Full Guide

Types of ODR providers in China

ODR is provided in judicial and extrajudicial institutions in China, each specializing in different dispute fields. Extrajudicial ODR providers are divided into three categories: Online mediation platforms for pre-trial mediations, online arbitration platforms developed by arbitration institutions, and self-contained platforms developed by e-commerce platforms.

1- Judicial ODR platforms

A. Online Mediation Platform

To save people the time and expenses of litigation as well as giving them more access to justice, China introduced the online mediation platform in early 2018. This platform connects all the 3502 Chinese courts, 32937 mediation institutions, and 165333 mediators.

In 2020, the platform has successfully resolved 5.2 million disputes. 65 percent of them were successfully resolved. Since its creation, 13.6 million disputes were settled.

The mediation on this platform has to be concluded within 30 days. If the dispute is unresolved, the involved parties will be referred to trial.

B. Courts of the Internet

China’s three online e-courts are located in Hangzhou (2015), Beijing (2017), and Guangzhou (2018). Moreover, there are online tribunals founded inside the traditional courts in different cities and provinces across China such as Shanghai, Shenzhen, Wuhan, and others.

The role of these online courts is to rule over e-commerce related disputes. These disputes could be concerning contracts or purchases, financial loans, services, and copyright… etc. they offer 24-hour online access and self-service. Interestingly, these courts adopt mediation as the dispute resolution method.

According to judges from these courts, more than 700 dispute is resolved every year.

2- Extrajudicial ODR platforms

A. Online Arbitration Institutions :

According to China Arbitration Institution, more than 30 out of 255 arbitration institutions in China provide online arbitration. Disputes arbitrated online account for more than 40 percent of all the arbitrated disputes in 2019, and with an enforcement rate of 75 percent.

Some reputed arbitration institutions that have adopted online arbitration are the China International Economic and Trade Arbitration Commission (CIETAC)’s Domain Name Dispute Resolution Center (DNDRC) and the CIETAC Online Dispute Resolution Center.

B. Online People’s Mediation Committees:

Also known as civil mediation committees, the People’s Mediation Committees (PMCs) are autonomous organizations where the mediators are not judges or lawyers and whose role is to mediate civil disputes. Many PMCs provide online mediation services with the aim of promoting mutual understanding and agreements. One famous example of an online people’s mediation platform is Bayu Peacemaker.

C. Self-Contained Online Resolution Platforms:

The self-contained platforms are the internal ODR systems of e-commerce websites such as the ODR of Alibaba Group’s Taobao, Jingdong, and Gome. Alibaba.com’s Taobao and Tmall are leading e-commerce websites.  The consumer-to-consumer (C2C) Taobao and business-to-consumer (B2C) Tmall have incorporated their own internal ODR in which their customer service handled disputes. For details on how to initiate a dispute on Alibaba, check out How to Win Disputes on Alibaba: The Ultimate Guide.

In 2013, however, the disputes were handled by amateurs from the public. Moreover, Taobao.com launched the User Dispute Resolution Center in 2012 to resolve disputes between them and traders, which later expanded to include disputes between traders and consumers.

International E-commerce Disputes on ODR platforms

The high costs and long processing periods required to complete a cross-border dispute of the traditional litigation way are huge obstacles facing e-commerce users. Luckily, there are many e-commerce dispute resolution platforms that accept international cases.

1- The Hangzhou Internet Court Cross-border Trade Tribunal

The Hangzhou Internet Court has established a cross-border trade tribunal in 2020. The tribunal is specializes in international e-commerce disputes.

This is the first People’s Court in the country to conduct a centralized trial of cross-border digital trade disputes in accordance with the law. Immediately after its establishment, the court heard its first case between a Singaporean user and Alibaba’s Tmall who claimed that the received order, a computer, did not match the purchase contract.

2- One Stop: China International Commercial Court Platform

China International Commercial Court’s One Stop is another court that serves as an e-commerce dispute resolution platform where international or domestic litigants can choose between mediation, arbitration, or litigation.

The platform is home to different reputed arbitration and mediation institutions such as the China International Economic and Trade Arbitration Commission (CIETAC) and the China Council for the Promotion of International Trade Mediation Center (CCPIT).

3- China International Economic and Trade Arbitration Commission (CIETAC)

When it comes to international arbitration, the China International Economic and Trade Arbitration Commission is leading the way in China. It resolves foreign-related commercial cases as well as domestic cases where it accepted 739 international cases out of 3615 total cases in 2020.

CEITAC prides itself on its lower fees when it comes to international disputes and shorter time to conclude a dispute compared to other international arbitration services around the world.

Accessing and Using These Platforms as a Foreigner

The process of applying to an e-court, arbitration, or mediation service is somehow similar across their websites. Let’s take China International Commercial Court’s One-Stop as an example.

Chinese ODR platforms that offer international e-commerce disputes usually have their websites in English besides Chinese. This allows international users to easily and quickly access and understands all the procedures.

The flow chart:

1. Users have to register and log in to their accounts on the One-Stop platform

2. After logging in, you choose the resolution method you see most fitting to your case in the platform offers different ones.

3. A. Mediation: If you choose mediation, you then have to submit the necessary materials, which will then be reviewed by the website. Afterward, you will choose the mediating entity that will handle your case, namely mediating with a member from the Commercial Expert Committee or with a mediation institution. If the mediation concludes successfully, the CICC will issue a conciliation statement or judgment. If the mediation fails, you will be directed to litigation.

3. B. Arbitration: If you choose to arbitrate your case, you will immediately be asked to choose an arbitration institution from the ones listed on the platform. After that, you will fill the institution’s application form, arbitral awards application, and others. The judgment of arbitration is binding and non-appealable.

3. C. Litigation: initiating litigation starts with pleadings submission, which will then be reviewed by the court in charge. Following the case registration, hearing sessions will be scheduled. The final decision will follow.

In some cases, these e-courts will adopt asynchronous trials that allow international litigants who live in different time zones to participate in the hearings. The litigants are allowed to log in and record their answers to questions posed by the opposing party or the court at any time. The judge will be able to oversee the entire recorded arguments and access any shared documents.

Litigating E-commerce Disputes with Chinese E-Courts: Pros and Cons

Pros of Chinese E-Courts:

1. Chinese e-courts are cost-effective even in international claims. For example, if the disputed amount is $1000, your fees are $10 only.

2. Chinese courts enforce the judgments easily on Chinese defendants.

3. they are less time-consuming than traditional courts.

4. they offer asynchronous trials.

Cons of Chinese E-Courts:

1. You must have a contract with the seller that is not only electronic such as those via email. Otherwise, these courts will not consider it an e-commerce case.

2. The e-commerce seller must be located within the court’s jurisdiction. That is, they have to be in Hangzhou, Beijing, or Guangzhou. Most big e-commerce markets are located in these cities.

3. if the seller is not located within the e-courts cities, the delivery location must be within them. If neither the seller nor the delivery location is in 2. The e-commerce seller must be located within the court’s jurisdiction. That is, they have to be in Hangzhou, Beijing, or Guangzhou, you have to refer to the traditional courts.

4. You need to have a Chinese mobile phone number to register and initiate the process.

5. You will not be able to complete the authentication as it requires a WeChat or AliPay face recognition and both are bound to Chinese Banks only. In this case, you have to use a Chinese Lawyer to complete the authentication on your behalf.

6. You will have to submit a notarized and certified copy of your passport by the local Chinese embassy or consulate in your country to the Chinese lawyer. This adds more expenses.

Expected time and costs

the processing time and costs using these platforms vary greatly depending on the case, third-party service providers, the resolution method such as mediation, arbitration, or litigation.

However, you should expect the following fees.

Court costs: If the platform is hosted by a court or in case of litigation, court costs and other fees are payable for each court order applied for and will include at least an acceptance fee and an application fee.

Third-party Service fees: if the platform includes and allows third-party mediation or arbitration institutions, their service registration and acceptance fees will apply.

For example:

Arbitrating with China International Economic and Trade Arbitration Commission: arbitration is usually concluded within four to six months, fees differ depending on the type of dispute and the center handling it: some cases require a registration fee of around $1550 in addition to a percentage of the disputed amount of at least $1550. Others will require a minimum registration fee of $15.51 and a handling fee of at least $930. When arbitrating with the Hong Kong Center, the registration fee is $1028.87 in addition to at least $2057.74 from the disputed amount.

Therefore, you should expect to pay at least $3100 to arbitrate with CIETAC.

Conclusion:

ODR platforms in China are evolving slowly but surely. With the Covid-19 pandemic hitting China aggressively, courts were obliged to look for other alternatives to in-person hearings and filing. Moreover, alternatives to litigation also proved to be more suitable to solve online born disputes such as e-commerce and copyright disputes.

From courts of the internet such as the Hangzhou Court to online mediation and arbitration platforms such as CIETAC and One-Stop, Chinese citizens, as well as internationals, are now able to fight back when they are victimized by any Chinese e-commerce market such as Taobao, AliExpress, or Tmall.

The post Online Dispute Resolution in China: The Ultimate Guide of ODR Platforms and E-Courts appeared first on ODR Guide.

As such, scams and swindles are necessarily bound to happen in such a huge market. For these, Alibaba has a designed dispute team that is ready to take your complaint and follow it up.

According to Alibaba’s Social Responsibility Report of 2017-2018, 95% of all cases mediated by their team were successful.

In this guide, we will show you how to initiate a dispute on Alibaba and how to win it, along with other important terminology such as:

What does PI mean in Alibaba? PI in Alibaba means Performa Invoice. It is an official quotation for your order and delivery terms and conditions. It is an important cornerstone in your case if you have a dispute on Alibaba.

What does a PO mean in Alibaba? PO in Alibaba means Purchase Order. It is a summary of your order details.

Upon initiation of a dispute, one could expect the following durations for negotiation and settlement of disputes on Alibaba:

Since you’re here, check these dispute guides on AliExpress, Amazon, eBay, Shein, Airbnb, Freelancer.com, PayPal, and BNPL methods. If you are doing business regularly with companies based in China, you will find this useful Online Dispute Resolution in China: The Ultimate Guide of ODR Platforms.

While you are at it, you may also read how Ali Express sales tax works in the USA and how to avoid it in AliExpress Sales Tax: Everything You Need to Know and if you are in the UK or European Union Everything About AliExpress VAT in the EU and the UK and of course, for the refund policy FAQs in AliExpress Refund FAQ: Tips On How To Successfully Get a Refund.

How to Win the Dispute on Alibaba:

1. Document everything that’s not written:

This can be via taking screenshots or recording the product’s description and communication history. By gathering as much evidence, you will be shielded against the seller’s attempts to undermine your case by changing the descriptions or denying any promises.

2. Fill and send a PO – What does a PO mean in Alibaba?

A PO is short of Purchase Order. This is a summary of the product you’re ordering, and consequently, your defense when you receive anything less.

3. Request a PI – What does PI mean in Alibaba?:

PI in Alibaba is short for Performa Invoice. This is your joker card, seriously. If you don’t have a detailed PI, or worse, none at all, you might as well cancel your dispute.

This is because a PI represents the seller’s intention and consent to sell a certain product. It will protect you against any claims from the seller that might forfeit your refund right.

4. Make sure the PO and PI are matching:

This will guarantee that you and the seller see eye to eye when it comes to the product’s specifications. As mentioned earlier, you have to make sure the product details are similar on both documents,

4. Use Trade Assurance:

This will minimize your chances of getting scammed in the first place because you will be dealing with trustworthy sellers. If a dispute arises anyway, you will be 100% covered.

5. Request pre-shipment inspection:

This will shield you against damaged, counterfeit, and different products before they are shipped. It will also save you a great deal of time, money, and disappointment.

6. Do not cancel the dispute on the seller’s request:

Many sellers will try to manipulate you into closing the dispute by promising a refund or other lures. You should know that if the seller had any intentions of refunding, you wouldn’t have had to initiate a dispute in the first place.

Disputes and Scams on Alibaba:

Regardless of whether you are a new or a regular customer of Alibaba, you can fall victim to a scam at any moment.

They can happen at payment, before ordering, or after ordering.

Alibaba’s rules page lists a number of severe and general disputes that could occur on their website.

Here are a few examples of scams and causes of dispute on Alibaba that you need to be aware of:

1.  Buying a fraudulent product listed as genuine.

2. Price increased after you place your order.

3. No product compliance certificate is presented.

4. Receiving outright different, delayed, or damaged products.

5. Receiving a product that does not match the written specifications and quality

6. Receiving less than the quality ordered and paid for

7. Contract related issues such as refused refunds

Initiating the Dispute Process on Alibaba:

If you are victimized by any of the previously mentioned scams or others, you shouldn’t worry. You can follow some steps to get a refund or get your right order with Alibaba’s dispute resolution scheme.

It’s imperative to note that you can only initiate a dispute if you have already completed an initial payment or paid the balance.

To initiate a complaint on Alibaba against a supplier or a seller, you need to:

Initiate Negotiation:

1. Visit Alibaba’s complaint center after logging in.

2. Depending on your situation and the type of order you placed, you will choose one of the following dispute types: Trade Assurance order dispute, wholesale order dispute, or offline trade dispute.

3. Upload relevant and valid proof that the supplier or seller is at fault. Proof could be: copies of the sales contracts, transaction records, and quality control reports

At this stage, Alibaba will intervene in the negotiation process between you and the seller and will only notify the seller about receiving a complaint. You and the seller will have from 3 to 30 days to reach an agreement.

During this process of negotiation, the seller is obliged to respond to your proposal within 5 days.

Failing to do so will escalate a dispute against them automatically. Similarly, if you don’t reply to the seller in due time, your complaint will be canceled.

However, if the seller refuses to settle, you can escalate a dispute starting from day 4 of the negotiation process, which will get Alibaba’s dispute team to intervene.

Request Mediation by Alibaba:

Alibaba will mediate between the involved parties through its dispute resolution system.

Alibaba mediation procedure

1. Once the dispute starts, the system will determine whether you or the seller need to submit proof depending on the type of dispute. If you have already presented the evidence, the dispute proceeds to step 3.
2. Depending on the system’s judgment, you or the seller will be required to provide proof within 3 days. Failing to do so, the system will cancel the dispute.
3. Alibaba’s dispute mediation team reviews the evidence provided.
4. If the proof provided is enough, the dispute proceeds to step 6. If the proof is found insufficient, Alibaba will inform the evidence provider to add more.
5. The mediation team reviews the added proof.
6. After all required proof is provided, the team will make a determination.

The decision that the mediation team makes if in your favor, can lead to a refund that excludes any service fees.

It will lead to complain case record publishing on the seller’s profile for 90 days if the dispute falls under the general dispute cases. If it’s a severe dispute, however, it will lead to the seller’s account termination and blacklisting.

What happens when Alibaba’s mediation fails or Alibaba dispute is not resolved by negotiation?

When the dispute is not resolved through amicable negotiation or if you are dissatisfied with Alibaba’s final assessment, your last option is to apply for arbitration in the Hong Kong Arbitration Centre (“HKIAC”) and notify Alibaba of your application within 20 calendar days after Alibaba’s final assessment.

This means that you have a maximum of 20 calendar days from Alibaba’s final assessment to apply for arbitration and notify the same to Alibaba.

If each of you and the seller does not notify Alibaba of your application for arbitration within the prescribed time. The determination will be final and binding on you.

Things You Need to Know Before Initiating a dispute on Alibaba:

Purchase Order (PO) – Meaning of PO in Alibaba:

This is a document that you will issue to the seller to show your intention to buy certain products. In this document, you will add as many details concerning your order as possible, including the product’s name, material, color, applicable standards, quantity.

It should also include your company’s information, purchase order number, the supplier’s details, delivery address, and your requested delivery time.

Performa Invoice (PI) – Meaning of PI in Alibaba:

This is a preliminary invoice that the seller will issue to you as a response to your PO. It should include your details as stated in your PO, the supplier’s details, delivery address, port of discharge, product details, unit price, and bank account details.

The product details and the supplier’s details are crucial. Make sure the product details match those on your PO and the supplier’s details match what’s on their profile. If they do, you can accept it and request a commercial, final invoice.

Trade Assurance – Meaning of Trade Assurance in Alibaba:

This is a free service from Alibaba to help you distinguish trustworthy sellers from those with new or suspicious profiles. By using it, you can converse with the supplier on Alibaba and create a contract there.

When you order a product from a Trade Assurance supplier, you are covered against scams and undesired ends.

This is especially efficient in case your order is damaged, delayed, or does not meet the quality standards agreed upon with the seller.

Pre-Shipment Inspection on Alibaba:

When you place a Trade Assurance order, you can also request a product quality control from the supplier before shipment.

This will ensure that your products are in good shape and that any damages are within the agreed percentage.

Expected time and cost for Alibaba disputes

According to Alibaba’s help center, the time needed for the dispute to be solved cannot be specified or generalized. This is because each case will have different response times from the involved parties and the evidence providing and reviewing times.

However, you can expect a maximum dispute resolution period of 90 days.

When it comes to costs and fees, the mediation service provided by Alibaba is free. Nonetheless, the pre-shipment inspection by Alibaba’s approved companies will cost you anything between $48 and $188.

Other costs can be in the form of taxes. These fees will not be refunded.

Conclusion

Online dispute resolution processes can be time, money, and energy-consuming, and this is why it is worth it to do anything you can to win them.

This guide detailed for you the necessary things you need to know and do to win a dispute on Alibaba. Things like having a PO, PI, and Trade Assurance will make all the difference.

On Another note, you may also check our detailed Q&A on AliExpress’s most commonly asked dispute questions in AliExpress Disputes: A Comprehensive Q&A guide and if it is legal to buy items from Alibaba and Aliexpress for selling on Amazon in Is It Legal To Resell Products On Amazon?

The post How to Win Disputes on Alibaba: The Ultimate Guide appeared first on ODR Guide.

Cancellation of sports events such as marathons and triathlons is very upsetting to participants as they have been planning and practicing for the event and also, risk the loss of registration fees and other related costs.

The big question on everyone’s mind is, what happens when a marathon or triathlon such as IRONMAN is canceled.

Can I get back my race event registration fees? The chances of recovering all the race registration fees are low. The best option is accepting a postponed entry in an upcoming event. If you do not have that option, minimize losses by accepting the partial refund offered by the race event organizer.

The next thing that will pop into your mind is most likely, that is unfair, what can I do with corporate organizers such as World Triathlon Corporation (Organizer of the IRONMAN triathlon) who canceled my race?.

Can I sue the race organizer? Individually suing the race organizer for canceling the race is not worth your money or time. However, Joining a class action lawsuit is your best and most economic option.

How can I avoid losing money due to race cancellation by organizers in the future? To avoid the risks of race cancellation, buy race cancelation insurance which costs on average $50 – $165, depending on the race fees and category. You will have to claim it separately, but you would recover most of your costs.

Depending on your insurance plan, you will most probably end up with:

1. Full refund, might be subject to some admin charges.
2. Redund of entry fee, less 15% excess. Example; nirvanaeurope insruance terms and conditions.
3. Receive a 75% credit (% depends on plan) to future races of your choosing. Example, Platinum Racing refund insurance option for purchase to cover events cancelled due to Covid-19.

Please keep in mind that most insurers require the event to be at least 15 days from the date of purchase.

For local events with the majority of local participants, you may opt for legal action in small claims court as the governing rules are the local rules which most participants are aware of and share the same risks.

You can read more about the small claims courts processes if you have a similar issue but with local organizers and smaller fees in Small Claims Court in the USA: Facts You Need To Know Before Filing.

You might also consider checking other informative posts for disputes with big corporations such as Upwork at Upwork Resentment and disputes between you and Upwork. How to win a dispute against Upwork.

Sports events basic terms and conditions

If you register for any events such as the IRONMAN race you will have unique terms and conditions that you will have to agree to in order to successfully register for the race. These terms and conditions might vary slightly across different regions, but will most likely consist of the following waivers in favor of the race organizer:

• The race orgainizer has the right to delay, cancel or modify the event – At their will.
• The race orgainizer has the right to delay, cancel or modify the event due to safety concerns.
• The race orgainizer has the right to delay, cancel or modify the event due to acts of god or public disasters.

Is suing the marathon or triathalon race organizer an option?

Suing the race organization, such as World Triathlon Corporation, by yourself is not an option. It is expensive and time-consuming to individually sue a race organizer corporation by yourself.

The costs and fees outweigh the benefits, and most lawyers will not accept the case as its value is probably less than the cost threshold they can accept.

However, you can join in class action lawsuits. More about class action lawsuits below.

My race is cancelled ? what shall i do next?

Depending on your situation, the following scenarios apply:

The marathon or triathalon event is potponed

It is not recommended to initiate a dispute or legal action in this case. While accepting the postponement of your entry, express your concerns and voice all your complaints in writing.

You might be able to extract some more concessions out of the organizers. Usually, first responders are able to extract more from the organizers than those who settle later.

If you can not accept the proposed date, request changing your entry to any similar race. Unfortunately, the terms and conditions of the race give the organizers the right of postponing the race as stated above.

Therefore, your best option is to negotiate any kind of race entry to avoid losing all your money.

I do not have a race cancellation insurance and my race got cancelled

Request and initiate complaints against the race organizers to obtain whatever concessions possible. You will get the most if you voice your complaint as early as possible.

The more the settlement process takes time, the fewer chances you can recover any losses amicably.

I have cancellation insurance, How can I claim my money back?

You will have to contact your insurance agency and fill the necessary forms along with evidence of cancellation, such as E-mails to obtain a payout.

Depending on your insurance plan, you will most probably end up with:

1. Full refund, might be subject to some admin charges.
2. Redund of entry fee, less 15% excess. Example; nirvanaeurope insruance terms and conditions.
3. Receive a 75% credit (% depends on plan) to future races of your choosing. Example, Platinum Racing refund insurance option for purchase to cover events cancelled due to Covid-19.

Class action lawsuit against marathon and race organizers (like IRONMAN)

What is a Class Action lawsuit?

A class action lawsuit is a legal procedure that allows one or more plaintiffs to file a “combined” lawsuit on behalf of a large group of people.

By doing that, the economic barrier and cost preventing a single member of the group who was affected by the actions of the defendant are removed.

In the case of marathon and triathlon race cancellations by the organizer, many of those affected can join in a class-action lawsuit to recover some of the losses they suffered, or at least, force the organization to change the future race policies.

Is the Class action lawsuit worth my time?

Joining a class action lawsuit is worth one’s time as you will not be doing any legal work or follow up by yourself.

You will register your name and information which be subsequently added to the list along with the others making part of the lawsuit.

If the class action lawsuit is won, you will receive the money, less the attorney fees, divided upon all the participants in the list, bearing in mind that lead plaintiffs receive the most money.

How much money will I get from the Class action law suit?

On average, a handful of dollars. Do not expect to recover all your losses or huge sums of money if you win the class action lawsuit against the marathon or triathlon race organizers.

However, you will be able to punish the companies (in case you win the case) and pursue them to change their course.

In the case of the IRONMAN class action lawsuit, it seems that the case is lost in terms of money, but, it has been made very clear to the IRONMAN cooperation that they will have to change their behavior in the future in order to retain participants.

How much will a class action law suit cost me?

In usual situations, the class action lawsuit will not cost you anything. The lawyer firm initiating and filing the class action lawsuit will be paid by getting a bulk share of the money received in case a settlement is reached.

A class-action lawsuit will usually cost you nothing. The lawyer who is filing the class action lawsuit will get his share of the final settlement. They just put your name on the list amongst others and the money is divided up accordingly.

In cases where the event is limited and on a local level, a lawsuit can be initiated in the small courts. More about the Courts systems in USA’s Virtual Courts: Here’s What You Need to Know and in case you are in the European Union and think you have a dispute with an organization, consider raising it as explained in the EU ODR Platform: The Ultimate Guide for Successful Dispute Resolutions.

The silver linning

Due to the strict terms and conditions, it is hard to win a lawsuit against marathon organizers and Triathalon cooperations such as IRONMAN. On a personal level, your best option is to negotiate to postpone your race entry or accepting a partial refund.

Also, in times of uncertainty on travel rules and restrictions, opt for race cancelation insurance. It might cost you up to $50 – $150 more, but you will be able to recover a big portion of your fees.

Please keep in mind that other costs such as plane tickets or hotels might not be covered, therefore, make sure to include them in the insurance policy.

If you can, try adding as much contingency as possible, such as booking in free cancellation hotels or arranging other kinds of insurance.

On a “Class” level, a class action lawsuit will most likely be lost due to the strict terms and conditions but will definitely make an impact on the race organizers.

The post Triathlons and marathons race cancellations, refunds options, and disputes. How to get your money back appeared first on ODR Guide.

Although you must be honest with your insurer, there are things that you should definitely keep to yourself.

Generally, if you were involved in a car accident that you thankfully survived, some will prompt you to call your insurance as soon as possible, if not right on the scene.

However, car accidents can make you anxious, shocked, and confused regardless if you suffered from injuries or not. This state of mind is not ideal for making objective or correct statements.

Moreover, your insurance company is not a friend nor a foe. It’s simply a business that will do anything to succeed by paying less and paying quickly. You may also consider reading more about this subject especially with self-driving cars, like our article on Tesla insurance or even reading about Lemon Law which is more common than you think and affects many car drivers.

With this in mind, let’s check the 9 things you should never tell your insurance adjuster.

For other kinds of disputes such as credit disputes and sports event cancelation, have a look at Don’t Dispute Your Credit Report Online: The Guide to Successful Credit Disputes and Triathlons and marathons race cancellations, refunds options, and disputes. How to get your money back

1- Admitting Guilt:

It’s my fault, I’m partially at-fault, I’m sorry, I apologize etc.

First and foremost, you don’t want to sabotage your whole claim with a headlong apology. Apologies entail admission of liability, at least this is how the adjuster will see it. Even if you are only being polite to the other driver or their insurer, you must bear in mind that it will not help but will surely harm you.

More importantly, don’t utter the words “it’s my fault” under any circumstances. More often than not, investigations will reveal more details on the incident than you initially had. Therefore, the other involved driver might be found partially or fully responsible for the accident. You don’t want to wrongfully blame yourself and end up recovering a very low amount of money for your damages.

2- Downplaying Your Injuries:

I’m uninjured, I’m okay, I’m fine etc.

While you might actually feel okay after the accident, you shouldn’t declare that right away to your insurer because some injuries will manifest after a period of time.

Give yourself some time to visit a doctor and prepare a thorough medical report before letting the insurance adjuster in on any details concerning your health after the accident.

When you rush an answer concerning your damages to your insurer, they will also rush a settlement that will be much, much less than what you actually deserve and need.

3- Speculating about What Happened:

I guess, I think, I’m not sure but… etc.

Precise and concise is your golden rule when it comes to dealing with your insurer’s investigator. That is to say, you should really say nothing more than what you are asked about.

The adjustor is paid to look so closely at everything you say, and speculations are their favorite loopholes to get the information they want. Therefore, when the adjustor poses a question that you don’t have a factual answer to, don’t answer it.

If you do, anything speculative you say will be used, certainly against you, in determining the settlement you get.

4- Giving Names and Contacts:

I called my parents, I spoke to my doctor, I told my partner… etc.

More people mean more opinions, and therefore, more discrepancies. This can never be good in your case.

When you give the investigator names of people whom you contacted after the accident and might have told some details, he will try to contact them to gather what they know.

However, one can never control what others will remember and in what order they will remember it. This means that the investigator is now presented with different versions. Eventually, this leaves more room for speculations and more room for the adjuster to downplay your damages.

You should know that you don’t have to share any information with the adjustor more than the accident’s facts. So be careful of giving the adjustor names or contact information of anyone who’s aware of the accident.

5- Giving Official Statements:

This is my official statement, you can record this

This one is easy: don’t give your or the other driver’s insurer a recorded or official statement under any circumstances. The only time you can do that is when your attorney advises you to do so. The attorney will tell you what to say and how to say it.

This is because recorded statements are always favorable to the insurer. They can be manipulated, misconstrued, and taken out of context to fit the insurer’s story, and you won’t be able to do anything about it since it’s your official statement.

There’s no law that obliges you to give a recorded or an official statement unless your insurance contract requires it.

So when it comes to official statements, you should either let your attorney handle it or never give one.

6- Letting the Insurer Know That You Don’t Have an Attorney:

I don’t have an attorney, I don’t work with attorneys

If you don’t currently have an injury attorney, don’t let the insurer know that. Instead, try to get yourself one as soon as possible.

An attorney will solidify your claim and force the insurer to take your claim more seriously.

7- Requesting a Quick Settlement:

Let’s get this done with, I want to settle this quickly, I don’t have time… etc.

Insurance adjusters usually have many cases to settle, probably hundreds, a month. They will always offer a quick, low-price, settlement and see if you are willing to take it.

If you show despair, they will offer you a rock-bottom offer that might not cover your damages at all.

No matter how exhausting the process is, don’t offer a quick settlement or accept one. Instead, you can negotiate with the adjuster or hire an injury attorney to negotiate on your behalf.

8- Setting a Number to Your Damages:

I just need this amount, I think this amount will do/ it’s fair.

Calculating an accident’s damages is subjective. Most people will not know how to do it and will downplay them to the costs of maintenance.

However, your damages include medical bills, lost income or ability to make income, your pain and suffering, and maintenance costs. To determine the value of these damages, it is generally accepted to calculate the total tangible costs, hospital bills, lost income, and maintenance and multiply it by a figure from 1.5 to 6 depending on the severity of your case.

There’s always the better option of counseling an attorney who will be able to determine your claim’s value more accurately.

But a rule of thumb is to never take the adjuster’s first number. It is always lower than what you deserve.

9- Giving Unnecessary Information:

I was talking to my son when, my car was already customized, I wasn’t driving fast

Details such as your speed or your car’s status before the accident are not ones you would like to share with the insurance company. Mostly because they are unnecessary and because the adjuster will use them to argue that you are guilty and at fault.

Other unnecessary information such as describing what you were doing when the accident happened can severely harm your cause.

Just as mentioned in number 4, you don’t have to give any excess information. The law only requires you to inform the insurance company when the accident happens and to provide the necessary information only.

Conclusion

Your insurance company is not your friend, and you can’t get so comfortable when dealing with it after a car accident. This is because you have different interests and goals.

While you are trying to get the best offer to cover your expenses, your insurer is trying to pay the least amount possible.

This is why you must make sure your claim is strong and invulnerable. One way of  doing so is to refrain from saying these things after an accident:

1. It’s my fault/I’m partially at-fault/ I’m sorry/ I apologize etc.
2. I’m uninjured,/ I’m okay/ I’m fine etc.
3. I guess/ I think/ I’m not sure but… etc.
4. I called my parents/ I spoke to my doctor/ I told my partner… etc.
5. This is my official statement/ You can record
6. I don’t have an attorney/ I don’t work with attorneys
7. Let’s get this done with/ I want to settle this quickly/ I don’t have time… etc.
8. I just need this amount/ I think the said amount will do/ it’s fair.
9. I was talking to my son when/ My car was already customized/ I wasn’t driving fast

Bear in mind that even if you decide to initiate a car insurance arbitration to get a better settlement offer, these things weaken your case too.

The best way of not falling into these traps is by counseling an attorney. If you have other questions on settling car accidents in private, you may find this article interesting by Forbes Advisor.

The post Don’t Say These 9 Things to Your Insurer after an Accident: The Guide to Successful Car Insurance Settlement appeared first on ODR Guide.

Online dispute resolution is an alternative. A change. Like rules and courts started as an alternative to sword fighting, ODR is a new alternative. Change cannot be avoided, therefore we should be focusing on addressing all the pros and cons of ODR and from all points of view as we will all inevitably use ODR (most probably, you already did without knowing! )

My thoughts are below. Happy reading!

To read more about ODR especially from the literature point of view check out; What is ODR (Online Dispute Resolution)? What does ODR mean? and Online Dispute Resolution: The Advantages and Disadvantages.

Common issues with ODR

When discussing ODR, a wide variety of advantages are presented such as:

1. Overcoming travel and location restrictions.
2. Anticipated decrease in costs. Mainly due to less travel, remote working and ability to share documents online
3. Reduced dispute resolution time. This is due to reduction in lost time from travelling, coordination and agreeing on face to face meeting, and in exchanging hard copy documents.
4. Justice delayed is justice denied! The ability to speed up “justice” indirectly affects economies and businesses in a positive manner as it improves investor confidence.

However, many issues that arise in practice are not discussed nor is it presented in a concise manner. This might be due to the lack of a centralized or “approved” platform for ODR, which can provide consistent feedback. Before going into the drawbacks of ODR, below are a few reasons which might explain why there is not enough information on the disadvantages of ODR:

1. First of all, like the advantages of ODR, there is no enough empirical studies to elaborate on both; the Pros and Cons of ODR and over a long period of time.
2. Not all countries have a similar stance on ODR. Therefore, it is hard to obtain verified data especially when issues of enforcement of ODR awards is still not clear.
3. While the UNCITRAL “UNITED NATIONS COMMISSION ON INTERNATIONAL TRADE LAW” did issue technical comments in 2017 on ODR, global consensus on ODR is still not achieved.
4. On another note, one might consider that one ODR drawbacks stems from its online advantages! Since ODR can be conducted online, there is no border restrictions. Therefore, people in china can be associated in a dispute with people from Sweden via a Canadian or American ODR platform. As you, can see many doubts can arise from the respective disputants due to the variety in language and culture between them.
5. Can Zoom meetings be considered as ODR? We need a dedicated platform for ODR – Not coordinated zoom meetings. This platform must be able to capture and externally record the meetings to ensure that the meeting was conducted on a fair manner and has some sort of judicial support.

For example, I recently attended an “Ad-Hoc ODR” Zoom meeting (as an observer) between 3 disputants and an external expert. One party spoke for nearly 2.5 hours without interruption and when the other party tried to explain his case, he started experiencing “mike” issues. Consequently, the expert ended the meeting without all parties having the same speaking chance due to “mike issues” and did not even mention this in his “Minutes of Meeting”

Practical drawbacks of ODR

1. Anything online is not private. Period. Cyberattacks are on the rise and no platform is safe from hacking attempts. In addition to that, there is concerns from the use of simple hack and tricks such as using an external screen recorder to record an ongoing session.
   • From work experience, I started noticing that some managers (not necessarily in a dispute) start two meetings at the same time through different platforms such as Zoom and WebEx, then, will use the recording function in one to record the original meeting without the knowledge of the participants.
2. Even with globalization, barriers still exists. Some of the disadvantages of ODR are not inherent from the process itself but from the differences between disputants themselves. A dispute might arise within business partners from France and India. In that case, even if English is used as the language of dispute, you cannot guarantee the full proficiency and ability of both sides in presenting their case correctly. To make things worse, one party might be at right but fail to correctly present their case! Such instances are bound to happen and will make people shy away from ODR in the future.
3. Conflict of interest. Individuals, Large corporations, hedge funds, venture capitalists..etc can be in invested in ODR companies through shell companies which might influence the decision of certain disputes. Many questions can come up, for example, they can influence the AI coding to be more biased towards certain entities such as Amazon or Facebook or even influence those assigned in complex cases.
4. Concerns on justice. This subject is discussed extensively in the literature mainly on the impacts of ODR in justice in terms of:
   • Procedural Justice (determining how fairly people are treated),
   • Distributive Justice (determining who gets what).,
5. These issues stem from the fact that not all people have the same level of access to the internet or “tech-savviness”. Not all countries have the same internet speed, access to the internet, and similar costs. A certain platform can be blocked in one country and so on. Many other issues such as body language and the ability to express oneself are also discussed extensively in the literature. For example, in many companies the person authorized to go into dipsute is usually (to some extent) older and less tech savy than those who are actually part of the dispute. This evident in Engineering or design firms, which are owned by one or more person but managed and operated by a different/ younger team.
6. Ability to actually negotiate and obtain reasonable concessions. Indirect communications usually results in one party being less well to give some concession or change their position in order to resolve a dispute. Disputants sitting at the comfort of their homes or office will most likely not be able to fully undertand or accept the other party point of view in many aspects.

Disputants tend to forge that ODR is not about enforcing rights, but about resolving and settling disputes reasonably.

Suggestions for improving ODR

Few additional suggestions to the usual ones discussed in the literature are suggested, such as:

• Implementing an eligibility clause for using ODR. This means that the contract in question and the disputants have the same capacity to go into ODR, represet themselves reasonably in ODR and have no bariers or issues with ODR.
• Use of bloch chain technology to increase the trust in the use of ODR and solving some of its security issues.
• A new convention specifically for ODR to internationally ratified.
• Focusing on fairness and quality of service and not on making it cheaper.

There are other suggestions that are a bit different but require more elaboration (Personal thought), namely; the use of a hybrid approach.

This is a Traditional ADR approach (Offline) infused with ODR. The ADR procedure can be initiated offline (the traditional way) and once the ADR process commences (for example, arbitration), a mix of “In-Person” and (Online) sessions and proceedings will be carried.

The use of a specific ODR platform for some aspects of the arbitration process can be preset into the arbitration agreement. The purpose is to reduce some of the arbitration costs and reap the benefits of both ADR and ODR.

Wrong approach towards ODR

It is human nature to go overboard and forget the original goal or intent of their actions. Overcomplicating processes and focusing on automation is one issue that plagues online customer service platforms.

The use of bots, automatic replies, and virtual assistants is not handy. Everybody knows that this is just a way to reduce human input, and hence costs. The use of AI and bots to gather or filter information by relying on certain keywords or behavior is not helpful especially for those who are not accustomed to using the internet (for things other than normal browsing or watching youtube videos). In addition, the interface and speed are usually not helpful which further acts as a barrier towards mass adoption.

This is evident in monetary disputes that are solved by AI. Where one party may on purpose go for high reductions in demands directly at the commencement of the settlement process to shift the algorithm to his favor as he/she is “trying to resolve the dispute”. This ignores the fact that the initial money claimed was probably much more than what is fair.

Other global risks for ODR

These are described as global risks as they affect the internet as a whole. Deep fakes might result in severe corruption and defrauding in online hearings and cases involving expert witnesses. It can be resolved by implementing additional security requirements such as secret verification codes, fingerprints, and double authentications by other parties too. The use of blockchain technology will play an important role in the security process too.

Other security issues include manipluation of data and hacking to gain leverage.

The last issue is political and is concerned with worries about enforcing the use of private ODR providers in international disputes which might cause political issues to arise.

Final Thoughts

ODR is here to stay. A new convention, similar to the new york convention, may be the first step for worldwide adoption and consensus on ODR awards and for seeking remedies to its drawbacks.

The post Personal thoughts on Online Dispute Resolution and its future. appeared first on ODR Guide.

Technology is insinuating itself into every area of our lives, changing our notions of how global society should operate, and how we resolve disputes will be no different.

ODR, like ADR, is a range of processes. ODR is a how not a what.

Most dispute resolution processes will likely migrate online, and ODR will be relevant to almost every kind of dispute. Professor Frank Sander’s concept of the multi-door courthouse is an apt model for ODR systems designers because online processes can offer a nearly infinite range of “doors” customized for nearly every kind of dispute. In addition, Professor Sander’s suggestion that ADR providers “fit the forum to the fuss” is also particularly relevant to ODR since there are both more “fusses” and more “forums” in the online environment, necessitating a wider range of redress processes to handle the broader spectrum of potential issues.

You may also find this interesting, Trust and Security in Online Dispute Resolution.

More Disputes

The demand for ODR comes mainly from the growth of online disputes, such as from eCommerce transactions or “on-demand economy” disputes that cannot be managed face-to-face. There is also likely an increasingly inadequate supply of mediators and arbitrators as the numbers of disputes increase and where face-to-face options might be available, but the disputes involve low values.

The following assertions contain a number of hypotheses about the growth in the number and range of disputes. The first assertion is verified largely by what we know about eCommerce disputes. Still, at least some of the other assertions in the list represent untested hypotheses and provide a framework for future research.

1. The number of disputes increases whenever transactions and relationships increase.
2. The more novel the activity, the greater the likelihood of disputes. The first iteration of an innovative product or activity rarely anticipates all the disputes it will generate.
3. The more valuable the item or issue in question, the more likely it is a problem or grievance will turn into a dispute.
4. The more data that is collected, processed, and communicated, the more opportunities for disputes. The more data that is collected, the more bad data there is.
5. Speed and time pressures lead to disputes. If value is likely to erode quickly, as is often the case with technology, pressure to protect and aggressively extend its value increases.
6. Increased complexity in relationships and systems creates more opportunities for disputes. In the words of computer scientist Peter Neumann, “Complex systems break in complex ways.” When informing shareholders about a federal investigation of problems in correcting errors, Experian stated, “We might fail to comply with international, federal, regional, provincial, state or other jurisdictional regulations, due to their complexity, frequent changes or inconsistent application and interpretation.”
7. The easier it is to complain (by filling out an online form or sending an email), the more disputes there will be.
8. The lack of transparency in algorithms leads to disputes.
9. The less attention given to preventing disputes, the more disputes there will be.

More on causes of disputes in construction: 8 Examples of Small Disputes in big Construction.

More Forums

Alongside the challenge of more disputes is the opportunity for developing more and novel avenues for resolving disputes. “More” does not simply mean a larger selection of what is already in existence. “More,” in this context, translates into the adoption of digital tools and systems that provide solutions to problems (small and large). And it is the use of information technologies in new ways that anticipate and prevent disputes.

By generating more disputes, technology has made access to injustice easy. Technology also presents opportunities to develop new forms and formats that facilitate access to justice. While some private companies may resist providing data about numbers or types of disputes handled, all have some incentive to provide information about the processes they employ to handle disputes. Facebook, for example, provides a series of screenshots of the process one can use to file a complaint.

The increasing number of ODR companies and governmental entities are also likely to post descriptions of their systems. There has recently been a growth spurt of ventures that are either already in operation or in various stages of development. They are all likely to serve as data sources. These include the following:

1. Private firms: Modria, Youstice, SmartSettle, Picture it Settled, Mediateitonline.com, NetNeutrals, Virtual Mediation Lab
2. The Hague Institute for Innovations in Law (HiiL)
3. British Columbia Civil Resolution Tribunal
4. UNCITRAL
5. EU Directive on ODR
6. UK Online Small Claims Court
7. Stop Errors in Credit Use and Reporting (SECURE) Act-Proposed legislation in the United States to facilitate error correction in credit reports.

17 Opportunities Distinguishing ODR from ADR

ODR presents so many novel capabilities and opportunities for dispute resolution that it requires a new research agenda to better define its optimal application. Simply applying prior face-to-face models for processes and ethical rules is inadequate.

There are many unanswered questions around ODR, and it will take time to both define the necessary questions and analyze data collected from ODR to determine best practices. While many new research needs will likely become apparent over time, here is an initial list of the issues researchers will need to tackle in the near future to distinguish ODR from traditional ADR practice:

1. What will be the dispute systems design in the online environment?
2. Models for building trust, convenience, and expertise via technology
3. Skills needed for effective ODR service delivery
4. Use of data for prevention of disputes when ODR provides much earlier access to disputants in the overall dispute lifecycle
5. Similarities and differences between technology-assisted negotiation and mediation
6. Areas of overlap between ODR and ADR, including the optimal use of technology inside of a face-to-face dispute resolution process
7. Use and role of apology in online processes
8. Sense of participation and voice in asynchronous, text-based interactions
9. Statistics on the percentage of agreements reached and upheld, especially in comparison to ADR and particular forms of ADR. There is a long-standing statistic that face-to-face mediation leads to agreements in approximately 85-90% of the time. Is online mediation similar? What variables can be isolated in online mediation that can affect the success rate?
10. Demographics: What are the demographics of those who are providing ODR? Is ODR replicating the same demographic patterns that ADR has been consistently critiqued for over the past 30 years: mostly white middle-class people providing services, especially when they are volunteers, for lower-income populations, disproportionately urban people of color? Is technology making headway in broadening who is giving and receiving services?
11. Breadth of data collection: it should be easier to gather data from a broad range of sectors (family, commercial, criminal, civil, education, environmental, public policy, etc.) and from across the globe. This will provide very useful comparative data. It can also provide a valuable overview of the landscape by types of technology, type of demographic, type of dispute resolution process, etc.
12. What types of technologies are being used most (i.e., video conferencing, texting, emailing, mobile phones, chat rooms, etc.)?
13. What barriers have people experienced in adopting technology or employing ODR for neutrals, for disputants? Breaking down these categories by demographics such as gender, age, race, ethnicity, language, and – for disputants – being a respondent or complainant, being an individual or a business, etc.
14. What types of processes that involve dispute resolution, but are not typically seen as ADR, are increasing in use with the help of technology? One critique of the ADR field, from those external to it, is that there are other professions that handle disputes that have not usually been included in “the ADR profession” but are routinely turned to for handling disputes. This has narrowed the field and the professionalization process. Since ODR provides even more opportunity for inclusion, access, and creativity, it is an opportunity to gather data that would help us learn about who and how people are using technology to resolve or prevent disputes.
15. Links between the collection of data in ODR and access to justice
16. Transparency in face-to-face processes versus ODR use of algorithms
17. How to conduct effective training in ODR, how it differs from ADR training, and whether ADR training should be a prerequisite for ODR practitioners

Conclusion

Looking into the future, it is clear that the lines between ODR and ADR will continue to blur until it is very hard to tell one from the other. Technology is insinuating itself into every area of our lives, changing our notions of how global society should operate, and how we resolve disputes will be no different. Eventually, ODR may be how we resolve most of the problems in our lives, with algorithmic approaches even more trusted than human-powered resolutions.

The only question is how long this transformation will take to play out. The pace of that change will largely be determined by how quickly we can consolidate the lessons learned from ODR projects to date and conduct new research to answer the remaining questions about how ODR can be made most effective. A decade ago, the notion of ODR as the default means of redress for both online and offline disputes sounded like science fiction, but with the pace of technological change, such an assertion now seems most likely.

At some point soon, it may seem obvious that such an outcome was inevitable. Human ingenuity has found solutions to previously insoluble problems for many decades. Now, as we wrestle with the ramifications of a fully and digitally connected world, we face new challenges that were unimaginable a generation ago. 

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