ABSTRACT

Technological advancement has impacted every sphere of human endeavours including the dispute resolution space. Dispute is bound to happen between parties in commercial transactions. Traditionally, such dispute was known to be resolved through the adoption of any of the alternative dispute resolution mechanisms which requires parties meeting physically at an agreed location. However, the advent of Covid-19 in Cameroon hampered the operation of physical meeting for dispute resolution, hence, the adoption of Online Dispute Resolution (ODR) mechanism which is a novel development in Cameroon. It is against this background that this research seeks to examine the redress mechanisms available to consumers in online transactions in Cameroon. This research adopted a qualitative research methodology using doctrinal method of research. It places reliance on library resources. The findings reveal that, there is no specific regulation for the operation of ODR in Cameroon which may pose danger for enforcement ODR agreements or its award. More so, high cost, poor or lack of internet services, inadequate ICT knowledge, poor power supply, amongst others are also potential challenges for smooth operation of ODR in Cameroon. The research concluded that ODR mechanisms seems to be the most effective means for providing access to justice for online consumer and resolution of disputes without the need for physical contact. It was recommended that the Arbitration and Conciliation Act should be amended to recognise electronic signatures and virtual disputes resolution process and treat issues relating to enforcement of online terms of settlement or agreement.

CHAPTER ONE

GENERAL INTRODUCTION

The world of commerce has changed drastically in the last couple of decades. Before the advent of the internet and electronic commerce, transactions were carried out face to face and in close proximity. However, the internet has brought with it a faster, and in some instances more efficient ways of doing business, now businesses can offer their products and services to individuals in locations which they would hitherto have been unable to. This is an illustration of the immense advantages which online businesses have brought to the commercial environment. This chapter provides an introductory overview of the study. It embodies the background to the study, statement of the research problem, research questions and objectives, literature review, theoretical framework, justification for the study, significance of the study, scope of the study, definition of key terms and synopsis of chapters.

1.1 BACKGROUND TO THE STUDY

Consumer protection has increasingly become a critical and significant issue in national, regional and international market places. The reason is not far-fetched, as it is a veritable technique of addressing imbalances between suppliers and consumers, and to correct the inherent disparities in the market relationship between the duo in terms of bargaining power, knowledge and many other resources[1]. The advent of globalization has also intensified the need to protect consumers as the world has become a single global market for global consumers and for the sale of different commodities and services.[2]

The growth of Information and Communications Technologies (ICT), notably the emergence of the internet in the late 1990s and the widespread usage of mobile technology in recent years, has had a significant impact on the business world and consumers in particular. The old way of commerce is taking on new forms, resulting in a shift in the seller-buyer relationship.[3] The internet has ushered in a new era of commercial transactions that is both faster and more efficient.[4] Furthermore, the numerous problems that previously accompanied both international and national economic transactions have already been relegated to history.[5] This is due in part to the internet’s numerous advantages to consumers, traders, and the economy. Commercial transactions can now be carried out through the internet between parties from all over the world who may never meet in person.[6]

Technological development has a huge impact on all areas of socio-economic processes. Today trade cannot be imagined without the use of information and communication technologies. With the development of digital economy, the growth of distance trading and online services, new mechanisms are needed to resolve disputes arising between participants in commercial transactions.[7] In Cameroon, consumer abuses and exploitation are most discernable in the use of fake foreign labels to attach to inferior foreign and local goods and products, erasure of expiring dates from expired goods. Some antibiotic capsules contain talcum powder and the sale of substandard products (the litany of these wrongs is endless) with total disregard for the consumer’s rights, health, welfare and interest[8]. A fourth party may from time-to-time act as a neutral mediator in resolving a dispute by implementing procedures for automating negotiations and assisting in finding options for an agreement.[9]

The emergence and application of electronic commerce in developing countries like Cameroon was not fully accepted by the Cameroonian public. This is due to the implications it has across the entire spectrum of consumer protection. Unsafe goods can be purchased online, and unfair or unlawful economic operations can be carried out using distance communications, resulting in blatant and ongoing violations of consumer rights.[10] However, because of the COVID-19 outbreak and the country’s necessary lockdown, citizens were unable to go about their daily lives[11]. This, on the other hand, encouraged the use of electronic commerce in Cameroon. Businesses were compelled to engage in electronic transactions with their customers. In contrast to the conventional way of business, consumers could no longer scrutinize products before purchasing them[12]. However, due to the increased use of the internet for commercial transactions, several legal and social difficulties have arisen, posing substantial challenges to e-commerce activities in Cameroon. These difficulties have caused ambiguity and a lack of consumer confidence in electronic transactions, as well as acting as a deterrent to enterprises adopting ethical business practices. Thus, online consumers must be protected, and the entire e-commerce industry must be regulated.[13]

Due to the increasing use of the Internet worldwide, the number of disputes arising from Internet commerce is on the rise. The explosive expansion of the use of the Internet makes it possible for businesses to expand their markets and render services to large groups of e-consumers. While off-line transactions can lead to problems and disputes, the same is true for online transactions. In other words: e-commerce transactions will without a doubt result in electronic transactions. With more and more businesses being conducted through electronic commerce, dispute arising from misunderstanding, conflicting interest or malicious actions are inevitable.[14] The difficulty of obtaining satisfactory redress in the wake of disputes may render recourse illusory. This difficulty stems from the distance that separates the two parties, the different legal frameworks, the cost and complexity of legal actions. As such, dispute in online transactions are broad in scale both in quantity and complexity.[15] To guarantee the long term effects of e-commerce, there is the need for an effective dispute resolution mechanism.

 The nature of electronic commerce questions the adaptability of the traditional litigation system and alternative dispute resolution used in commercial disputes to e- commerce. Although it is possible for these old systems to be used in e-commerce, it would be opined that there is the necessity to develop new dispute resolution tools that would accommodate electronic commerce. While preserving the traditional function of resolving disputes, new information and communication technology should be made available to those mechanisms.[16]

As new information and communication technology is widely used in commercial activities, it should likewise be made use of by mechanisms formulated to monitor such activities; the court mechanism and alternative dispute mechanisms should be reformulated to introduce the use of internet in dispute resolution. However, the present legal remedies in the context of online transactions are not the most effective means of redress because of the nature of long-distance transactions and jurisdiction problems. Given that consumer transactions generally involve small amounts of money, it is unrealistic to oblige disputing parties to submit large filing fees for arbitration.[17] With the present mechanisms, a case could be prolonged for a year or longer, a ridiculous stretch of time for a dispute. Thus, only when it is demonstrated that disputes can be heard more quickly and disposed of more effectively with the use of the Internet that the net effect will achieve consumer trust in real consumer protection.[18] It would be held that the Cameroonian courts should step up the use of computers in general and internet facilities in particular in the area of dispute resolution so as to be up to date with the era of e-commerce. The internet has fundamentally changed social and economic life, the legal field needs to follow suit and adopt new policies in dispute resolution. Development should be made to accommodate technological improvements or else outdated theories might likely obstruct the smooth functioning of dispute resolution.[19]

The increasing public interest in online shopping during this pandemic was actually used as a part of the seller to get profits in various ways. In fact, the public can submit a complaint if they encounter practices, including purchasing goods that are not in accordance with the agreement (goods that arrive are different from those shown in advertisements); goods purchased do not arrive (not yet received by consumers); items that are damaged / cannot be used.[20] Not only that, the issue of unilateral cancellation carried out by business actors; the time of arrival of the goods is not as promised; a very long refund (refund); and experiencing fraud in the local marketplace system that causes losses to consumers can also be reported to the agency. The development of information technology in ecommerce trade has really helped people shop during the Covid-19 pandemic. However, the convenience of shopping online will cause legal problems if it is not followed by a security system for transactions on the internet, because it opens up loopholes for fraudsters to break into password accounts that result in consumer losses.[21]

Today’s information and communication technology has been utilized in the social life of the community, and has entered various sectors of life, including the government sector, the business sector, banking, education, health and personal life. The benefits of information and communication technology, apart from having a positive impact, are also recognized as providing opportunities to be used as a means of committing new crimes (cyber-crime) so that protection efforts are needed. Thus, it can be said that information and communication technology is like a double-edged sword, where in addition to making a positive contribution to the improvement of human welfare, progress and civilization, it is also a potential and effective means of carrying out acts against the law.[22]

1.3 RESEARCH QUESTIONS

1.3.1 Main Research Question

• How effective are the mechanisms put in place to redress consumers disputes in online transactions?

1.3.2 Specific Research Questions

• What is the concept and nature of consumer’s protection in online transactions?
• What are the methods of redressing consumer disputes in online transactions?
• How effective are the redress mechanisms for consumers in online transactions in Cameroon?
• What recommendations could be made to address the problems raised?

1.4 RESEARCH OBJECTIVES

1.4.1 Main Research Objective

• To examine the effective of the mechanisms put in place to redress consumers’ disputes in online transaction.

1.4.2 Specific Research Objectives

• To analyse the concept and nature of consumers protection in online transactions.
• To analyse the methods of redressing consumer disputes in online transactions.
• To investigate the effectiveness of redress mechanisms for consumers in online transactions in Cameroon.
• To make recommendations that can be used to solve the problems raised.