ONLINE DISPUTE RESOLUTION AND PRIVACY CONCERNS
Introduction
With globalization and the advancement of technology, Online Dispute Resolution serves as a practical solution to solve the greater number of cases that are not likely to be solved with conventional court. Yet, ODR systems are not without major privacy concerns, especially concerning the issue of identification data and other financial assets data. This is the reason that the ability to share this information electronically provokes questions about confidentiality and security of the data which is why the protection of data must be one of the primary concerns for ODR platforms. ODR systems are under pressure to conform to these data protection regulations such as GDPR, while keeping the process on digital platforms effective and accessible.[1] Ensuring that sensitive and personal information is protected at the same time as creating easy-to-use processes will go a long way in ensuring that people trust ODR as a method of dispute resolution in the growing online environment.[2]
Privacy Concerns in ODR
It is necessary to further discuss privacy issues in ODR since these platforms process different types of sensitive data. The primary data type consists of user identification data, financial records related to the transaction, and all communication between the disputing parties. First, it is the general predisposition of any technology-linked conflict resolution system, but it is especially problematic in the present ODR system since electronic tools use electronic means of operations and communications; in this context, the potential risks include hacking, data leaks, unauthorized access, as well as improper use of one’s personal information.[3] These vulnerabilities can deform the confidentiality and integrity of the process of the dispute resolution therefore having severe consequences for the parties to the dispute.
ODR platforms are also bound to several legal requirements, mainly the international data protection laws and the GDPR. Some of the general features of GDPR include consent where users have to opt into data collection processes; minimization where only necessary data is gathered from the users; and the right to be forgotten view users can ask for their data to be erased. These sanctions put significantly high responsibilities on the ODR platforms concerning how they deal with such information.[4]
Further, privacy and data protection laws vary from country to country; a problem that ODR platforms with cross-border negotiations face. This disparity makes compliance challenging and reduces the potential of ODR systems delivering secure and reliable dispute resolution services across the world.
Global Data Protection Laws and Their Impact on ODR
The General Data Protection Regulation (GDPR) is a detailed regulation that talks about Data protection and privacy regulation in the EU region. Some of the main components include the right of data subjects to access, rectify, and erase data; or limitations to processing in the best interest of data subjects. ODR platforms should address the GDPR since such platforms deal with personal data when mediating disputes. Non-compliance can result in stiff sanctions as well as loss of reputation within and external the organization.[5]
However, although GDPR has a very significant role, the ODR practices are also affected by other laws of data protection like CCPA and legal regulations in the Asia-Pacific region. These laws focus on protecting consumer rights and put so many conditions on the collection, processing, and sharing of personal data. Hence there is a need to ensure that ODR platforms change their strategies and policies to fit the numerous operational laws it faces.
One of the challenges that ODR platforms face is jurisdictional problems wherein parties that belong to different countries with divergent regulatory requirements are in a dispute. This makes compliance exercises even more challenging and can lead to companies violating the law without knowing it.[6] Maintaining compliance with these divergent legal frameworks is difficult since it entails constant surveillance of the existing laws on an international level and can incur major operational costs to ODR providers.
Practices for Data Security in Online Dispute Resolution
Security of data used in ODR is always significant especially due to the inherent sensitives of the information being used. Final layer protection has to be applied since information is vulnerable during transmission, and only the intended recipient should access it. Moreover, the use of good security authentication measures like MFA enhances security as it vouches for the user identity in more than one means thus effectively barring the intruders.
Implementing solutions such as cloud and server storage systems is a necessity to protect user data from breaches. Such solutions should have adequate security features in order to discourage illegitimate access. In addition, audit trails need to be kept at the ODR system level to record all activities that transpire in the process to reconsider or decrease the influence of bias when making decisions.[7]
To reduce risks even further, the ODR platforms should anonymize data wherever possible, that is, remove any personally identifiable data from the database.[8] This practice helps to minimize the Exposure Factor in case of a data breach. It is also important to periodically review security needs so that problems are found and solved before they occur.
Last but not least, the important step is gaining consent adequately and specifically from the users. This paper initially posited that ODR platforms must give their users an understanding of how they manage their user data for them to maintain the user’s trust and conform to GDPR.
Ensuring Accessibility and Privacy in ODR
Accessibility and privacy tensions are a major concern in the development of ODR platforms. As valuable and necessary, the best interfaces and smooth workflows are for active participation, it is crucial to use privacy measures at the same level to protect valuable information. This is important because ODR systems interact with personal identification data and financial records making it a prime area for breaks-in.
In this regard, user education becomes a very important factor. There is value in raising awareness of users on the protection of their data, identification of attacks, particularly phishing, and compliance with other secure computing practices to enrich the general security status of ODR platforms.[9] Moreover, compliance with privacy by design principles makes it possible to analyse privacy concerns in the context of ODR systems’ development to incorporate them into the process from the beginning.
However, as the issues of privacy advance, there is significant pressure on ODR platforms to develop as well. Introducing the benefits of ODR as an easily accessible, safe, and efficient method of conflict-solving can contribute to increased trust and utilization of online platforms addressing both key resolution mechanisms and privacy matters.
Author: Sahil Singh, in case of any queries please contact/write back to us at support@ipandlegalfilings.com or IP & Legal Filing
[1] https://www.livelaw.in/lawschool/articles/future-of-justice-technology-alternative-dispute-resolution-260027
[2] https://juristsjunction.in/2024/05/01/online-dispute-resolution-challenges-recommendations/
[3] https://arbitrationblog.kluwerarbitration.com/2020/09/25/online-dispute-resolution-platforms-cybersecurity-champions-in-the-covid-19-era-time-for-arbitral-institutions-to-embrace-odrs/
[5] https://unctad.org/system/files/official-document/tcsditcinf2023d5_en.pdf
[6] https://arbitrationblog.kluwerarbitration.com/2020/09/25/online-dispute-resolution-platforms-cybersecurity-champions-in-the-covid-19-era-time-for-arbitral-institutions-to-embrace-odrs/
[7] https://www.iaeng.org/publication/WCECS2014/WCECS2014_pp199-204.pdf
[8] https://iacr.org/archive/crypto2001/21390309.pdf
[9] https://nliulawreview.nliu.ac.in/blog/revolutionizing-justice-niti-aayogs-odr-blueprint-for-india/
