december 12, 2000 naoshi “ozzie” shima vp, internet business development nec corporation adr, a...

December 12, 2000December 12, 2000

Naoshi “Ozzie” ShimaVP, Internet Business Development

NEC Corporation

ADR, a Japanese ViewADR, a Japanese ViewADR, a Japanese ViewADR, a Japanese View

E-mail : [email protected]

Copyright (c) 2000 NEC Corp.

GBDe ObjectivesGBDe Objectives• GBDe: Global Business Dialogue on eGBDe: Global Business Dialogue on e

-Commerce-Commerce

• Established in 1998Established in 1998

• Worldwide, CEO driven effortWorldwide, CEO driven effort

• Development of policies to promote glDevelopment of policies to promote global e-Commerceobal e-Commerce

• For benefit of businesses and consuFor benefit of businesses and consumers everywheremers everywhere

<http://www.gbde.org><http://www.gbde.org>

Copyright (c) 2000 NEC Corp.(OECD: October, 1998)

Principle of Governmental/Principle of Governmental/Private Sectors CooperationPrivate Sectors Cooperation

1. Private Sector Leadership Development

2. Stable Legal Environment Given by Government

3. International Coordination

Asia, OceaniaEurope, Africa

Americas

e-Commerce


JapanJapanJapanJapan

USAUSAUSAUSA EUEUEUEU

Global Policy DiscussionsGlobal Policy Discussions

Global Global GovernmentalGovernmental

/Business /Business DialoguesDialogues

Global Global GovernmentalGovernmental

/Business /Business DialoguesDialogues

Transatlantic Governmental/ Business Dialogues

Japan-EU G

overnmental/

Business D

ialogues

Japa

n-U

S G

over

nmen

tal/

Bus

ines

s D

ialo

gues


GBDe OrganizationGBDe Organization

BUSINESS STEERING COMMITTEE

AMERICAS ASIA/OCEANIA EUROPE/AFRICA

Issue Working Group

Issue Working Group

Issue Working Group

Issue Working Group

Issue Working Group

REGIONALCHAIR

REGIONALCHAIR

REGIONALCHAIR

EXECUTIVE COMMITTEE

GLOBALCHAIR

Issue Working Group


TrustmarkTrustmark

ADRADR

Personal DataPersonal DataProtectionProtection

IPRIPR

TaxationTaxation

Trade PolicyTrade Policy

Cyber Security Cyber Security and crimeand crime

Digital BridgeDigital Bridge

GBDe Working GroupsGBDe Working Groups

ConsumerConsumer ConfidenceConfidence

JurisdictionJurisdiction

AuthenticationAuthentication and Securityand Security

Personal DataPersonal DataProtectionProtection

Information InfrastructureInformation Infrastructureand Market Accessand Market Access

LiabilityLiability

Contents and commercialContents and commercial communicationcommunication

IPRIPR

Tax and TariffTax and Tariff

Consumer ConfidenceConsumer Confidence

eGovernmenteGovernment

Paperless Trade andPaperless Trade and Internet PaymentInternet Payment

IPRIPR

TaxationTaxation

Trade PolicyTrade Policy

Cyber SecurityCyber Security

Digital BridgeDigital Bridge

ConvergenceConvergence

a

bb

a

1999 2000 2001


GBDe Members GBDe Members (as of December,2000)(as of December,2000)

Global Chair

Regional Chair

BSC Members

America On LineCisneros Group

TD Financial GroupSeagramEDSIntesaIBC ColumbiaTime WarnerTelefonos mexicoGrupo CarsoHPRSL CommunicationsAndersen ConsultingUniverso On LineIBMIG Mercury2Children’s TV NetworkeMusicWalt DisneyTelecom ArgentinaALESTRAFieraBCEChubb Corp.Venezuela Analitica EditoresMCI WorldCommNortel NetworksCaribbean Communications NetworkGradiente Eletronica

LG-EDSSingapore ComputerUtili-ModeSharpBank of Tokyo-MitsubishiHitachiNomura ResearchToshibaMitsuiTelecom MalaysiaNTTNECJoong-ang DailyAcerEverest

SICKPNAlcatelABN AMRO BankDTSiemensDeutsch BankDaimler-ChryslerBertelsmannFTMediasetNokiaBrokatBBVATelefonicaTD InvestStandardata EgyptC&W

FujitsuKorea Telecom Vivendi

MIH

Americas Asia/Oceania Europe/Africa


GBDe Activities CalendarGBDe Activities Calendar

‘98

‘00

‘99

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

6th Capetown

SherpaMeeting

2nd

NYC BSC

7th

Korea Sherpa Meeting

2nd Miami Plenary

Brussels Business Leaders meeting

NYC Global

Business Meeting

1st Brussels Sherpa meeting

1st NYC BSC

2nd Tokyo

Sherpa Meeting

3rd Paris Sherpa Meeting

4th LA Sherpa

Meeting

1st Paris Plenary

5th Seattle Sherpa Meeting

9th

Taipei Sherpa Meeting

8th

Paris Sherpa Meeting


Recommendations from Consumer Recommendations from Consumer Confidence Issue Group, 1999Confidence Issue Group, 1999

• Rec.1Rec.1: : Governmental support on development of Governmental support on development of trust and transparency for businesstrust and transparency for business

eses

• Rec.2Rec.2: : Governmental support on businessesGovernmental support on businesses

initiatives on security and privacy initiatives on security and privacy

• Rec.3Rec.3: : Cooperation between Government and Cooperation between Government and business to provide consumers with business to provide consumers with

efficient efficient remedy mechanisms instead of not remedy mechanisms instead of not necessarily effective national necessarily effective national

consumer consumer protection lawsprotection laws

• Rec.4Rec.4: : Governmental support on businesses efforGovernmental support on businesses effort t to provide convenience for customers.to provide convenience for customers.


Recommendations fromRecommendations fromJurisdiction Issue Group, 1999Jurisdiction Issue Group, 1999

• Rec.1Rec.1: : Government should promote development Government should promote development of of ADR mechanismsADR mechanisms

• Rec.2Rec.2: : Cooperated policy for the development of Cooperated policy for the development of self regulations, code of conducts, trself regulations, code of conducts, tr

ust ust marks and seal programmarks and seal program

• Rec.3Rec.3: : Freedom of choice and freedom of contracFreedom of choice and freedom of contractt

• Rec.4Rec.4: : Country of origin principle in the absence Country of origin principle in the absence of of contractual choice of lawcontractual choice of law

• Rec.5Rec.5: : Country of origin principle for civil and Country of origin principle for civil and criminal law issuescriminal law issues

• Rec.6Rec.6: : Free choice of forum in the absence ofFree choice of forum in the absence ofprovision in a contractprovision in a contract


Scope of Work of ADR WG, 2000Scope of Work of ADR WG, 2000

• Study ADR’s role in B2C disputesStudy ADR’s role in B2C disputes

• For that, pre-study on the current status in three regionFor that, pre-study on the current status in three regionss

• Issue recommendations to Internet Merchants, ADR serIssue recommendations to Internet Merchants, ADR service Providers and Governmentsvice Providers and Governments


Overview of Dispute Resolution Overview of Dispute Resolution Mechanism on B2CMechanism on B2C

NEGOTIATIONNEGOTIATION CONSULTATIONCONSULTATION ARBITRATIONARBITRATION LITIGATIONLITIGATION

Out of courtOut of courtMediationMediation

Court basedCourt basedMediationMediation

Informal ADRInformal ADR Formal ADRFormal ADR

ADR (Alternative Dispute Resolution)ADR (Alternative Dispute Resolution)

MEDIATIONMEDIATION

Our concernOur concern

For B2C


Recommendations from ADR WG Recommendations from ADR WG to Internet Merchantsto Internet Merchants

1. Use of in-house customers satisfaction program pri1. Use of in-house customers satisfaction program prior to ADRor to ADR

2. Clear notification on the website of readiness for A2. Clear notification on the website of readiness for ADRDR

3. Clear opened information on ADRs enough for the c3. Clear opened information on ADRs enough for the choice by the customerhoice by the customer


Recommendations from ADR WGRecommendations from ADR WGto ADR Service Providersto ADR Service Providers

1. Autonomy and Impartiality of the organization 1. Autonomy and Impartiality of the organization

providing ADRproviding ADR

2. Handling by qualified officer2. Handling by qualified officer

3. Accessibility and convenience3. Accessibility and convenience

4. Practicability of decisions in terms of cost and speed4. Practicability of decisions in terms of cost and speed

5. Transparency of proceedings5. Transparency of proceedings

6. No restriction on contests6. No restriction on contests

7. Proceedings executable by proxy7. Proceedings executable by proxy

8. Equity based, and8. Equity based, and

9. No binding force of decisions, unless pre-accepted9. No binding force of decisions, unless pre-accepted


Recommendations from ADR WGRecommendations from ADR WGto Governments (1/3)to Governments (1/3)

1. Jurisdiction issue must be resolved regardless of 1. Jurisdiction issue must be resolved regardless of

having ADRhaving ADR

2. Necessary policy cooperation between government 2. Necessary policy cooperation between government

and private sector on ADR should be madeand private sector on ADR should be made

3. Promote public awareness of ADR3. Promote public awareness of ADR

4. Encourage the use of ADR after negotiation and 4. Encourage the use of ADR after negotiation and

before the courtbefore the court

5. Encourage private sector to develop ADR services, 5. Encourage private sector to develop ADR services,

including education and training for ADR Officersincluding education and training for ADR Officers


Recommendations from ADR WGRecommendations from ADR WGto Governments (2/3)to Governments (2/3)

6. No discrimination among ADR service providers 6. No discrimination among ADR service providers

7. Refrain from mandatory accreditation procedure 7. Refrain from mandatory accreditation procedure

8. Allow ADR to function on the basis of equity, code of 8. Allow ADR to function on the basis of equity, code of

conducts or other rulesconducts or other rules

9. No requirement of lawyer qualification to ADR officers9. No requirement of lawyer qualification to ADR officers

10. Promote the development of globally applicable ADR10. Promote the development of globally applicable ADR


Recommendations from ADR WG Recommendations from ADR WG to Governments (3/3)to Governments (3/3)

11. Refrain from creating obstacles for the innovative use 11. Refrain from creating obstacles for the innovative use

of technologyof technology

12. Binding arbitration to be made possible in certain 12. Binding arbitration to be made possible in certain

casescases

13. Minimum procedural and form requirement13. Minimum procedural and form requirement

14. Adjust existing offline based ADR to be capable of 14. Adjust existing offline based ADR to be capable of

handling online disputehandling online dispute


Responses at the Miami PlenaryResponses at the Miami Plenary

First Comprehensive report durable First Comprehensive report durable for the use in further practical studyfor the use in further practical study

No bureaucracy should be brought No bureaucracy should be brought into the discussion of ADRinto the discussion of ADR

Some contradiction may exist in the Some contradiction may exist in the paper as a wholepaper as a whole


ADR (Alternative Dispute Resolution)An informal, private and flexible mechanism aiming at fast and

economical settlements (as compared with litigation)

Carried out between the concerned parties

Provision of expertise by a third party

Moderated by a third party

Judgement by a third party

Enforceability of results

Agreement by both parties

On request of a single party

Go to Arbitration or

Litigation

Has binding force

Enforceable under law

Has binding force

Enforceable with court decision

Has binding force

Enforceable



Mutualagreement

Non-agreement

Go to Consultation,

Mediation,Arbitration or

Litigation

Go to Mediation,

Arbitration orLitigation

Regulations/ Guidelines

Pre-conditions

Agreement on results

Enforceability of foreign results

Not regulated

JIS Proposal (Complaint-handling

management systems guide)

Under applicable

laws

Under applicable

laws

V 1.0 - 31/05/2000


Agreement byboth parties

Go to Arbitration or

Litigation

《 out-of-court》《 Court-based》

Under applicable laws

Not regulated

The enforceability within Japan of settlements

mediated through equivalent foreign systems needs

further study

Binding force of results


(Settlement contract)

（MediatedSettlement record）

Has binding force(as a contract)

Court-enforceable(as a result of

settlement contract)



NEGOTIATION CONSULTATION MEDIATION ARBITRATION LITIGATION

Mutualagreement

Non-agreement


Mutualagreement

Non-agreement


Mutualagreement

Non-agreement

On request of a single party











Judgement by a third party

NEC Corporation (Asia/Oceania Contact Point)

Basic characteristic

Overview of Dispute Resolution in JapanOverview of Dispute Resolution in Japan


What’s found through pre-study What’s found through pre-study in Japanin Japan

Most people believe in the good faith Most people believe in the good faith of merchants/manufacturers and try of merchants/manufacturers and try negotiation first when not satisfiednegotiation first when not satisfied

Most people hesitate to go to court and Most people hesitate to go to court and prefer consultation and out-of-court prefer consultation and out-of-court mediation when negotiation failsmediation when negotiation fails

Basic consumer protection law obliges Basic consumer protection law obliges local governments to establish the local governments to establish the consultation centerconsultation center


What’s found through pre-study What’s found through pre-study in Japanin Japan

In addition, central government, NGO and In addition, central government, NGO and

industrial organization based consultation industrial organization based consultation

centers already existcenters already exist

These centers are off-line based and face These centers are off-line based and face

lack of knowledge/experience/ skills issues lack of knowledge/experience/ skills issues

on handling on-line disputeson handling on-line disputes


Points under discussionPoints under discussion

No possibility in selection of judge in No possibility in selection of judge in

litigationlitigation

Lack of specific business Lack of specific business

expertise/experience of judge in litigationexpertise/experience of judge in litigation

Deregulation in attorney lawDeregulation in attorney law

Big difference between the power of Big difference between the power of

consumers and merchants/ consumers and merchants/

manufacturers in dispute settlementmanufacturers in dispute settlement


Scope of Work of Scope of Work of Consumer Confidence WG, 2001Consumer Confidence WG, 2001

What we discussed in GBDe’s Taipei Sherpa meeting on December 3 & 4 are…


Thank you!Thank you!

http://www.gbde.orghttp://www.gbde.org

december 12, 2000 naoshi “ozzie” shima vp, internet business development nec corporation adr, a...

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