Abstract

Examines the emerging and promising phenomena in the information technology era ‘electroniccommerce’. Endow with the definition explicate idiosyncratic features of electronic commerce. Along with other aspects of electronic commerce ‘the dispute settlement in electronic commerce’ as a vital challenge is analysed. Different settlement mechanisms are discussed despite the fact that special concentration is given to the new ‘Online Dispute Resolution’ mechanism. Conclusion is drawn while making some recommendations to enhance the quality, efficiency and effectiveness of the dispute resolution mechanisms.

Introduction

World is changing ever since the computer technology has arrived. Especially with the advent of the Internet, things started changing with a more rapid pace. Internet has played a major role in transforming the world in to a global village. Internet has tremendously enhanced people to people contact. This new technological scenario is transforming the structure of marketplaces today, and in the future, the changes it brings may be even more dramatic than those witnessed in recent years.1 Definitely like other beneficial effects of these new technologies there is big boost to economic activity as well. Before the advent of the Internet, consumers bought products and services from distant countries only in rather exceptional cases and instead, shopped at local or national establishments. Now the Internet has, along with other electronic commerce media, elevated the weaker party onto the global plane.2 Electronic commerce – business conducted over the Internet and other computer networks – is growing explosively. The Internet is a global medium that is open across all frontiers, and once posted, a website is global from the outset. Likewise, transactions, as well as commercial and promotional material on websites become global.3

The development of electronic commerce offers significant employment opportunities at large, particularly in small and medium-sized enterprises, and in future will stimulate economic growth and investment in innovation by the companies, and can also enhance the competitiveness of the industry, provided that everyone has access to the Internet.4 Electronic commerce is also helping to break down trade barriers; open markets and is revolutionising spending habits. It offers business substantial efficiency gains and consumers greater choice, better service and lower price. Business-to-consumer e-commerce is driving the new economy trend towards a more consumer oriented service culture which is the hallmark of the new economy. To compete in the global electronic market place, the companies will have to put the consumer first.5