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Success or Failure?—Effectiveness of Consumer ODR Platforms in Brazil and in the EU

Author

Listed:
  • M. J. Schmidt-Kessen

    (Copenhagen Business School)

  • R. Nogueira

    (FGV Direito Rio)

  • M. Cantero Gamito

    (CUNEF (Madrid), Spain and University of Tartu)

Abstract

This article examines the effectiveness of out-of-court procedures, in particular in the form of online dispute resolution (ODR) mechanisms, in the settlement of business-to-consumer (B2C) disputes. It offers a comparative perspective of two public ODR initiatives: Consumidor.gov.br , a Brazilian ODR platform, and the EU-provided ODR platform. Focusing on the institutional and procedural design of these two platforms, we highlight the factors and incentives that might contribute to increasing consumers’ trust and traders’ engagement in ODR procedures. The article relies on a large dataset from Consumidor.gov.br , consisting of a sample of more than 800,000 consumer complaints. While the EU ODR platform is not yet very well known among EU consumers, the Brazilian platform is becoming widely popular among Brazilian consumers. It is put forward that this popularity could be the result of the procedural design of the Brazilian platform, which serves as a direct communication channel between the trader and the consumer. Furthermore, we argue that the EU ODR platform could be more effective if the incentives for both parties, traders and consumers, to use ODR were reinforced. The article provides further policy recommendations on how the potential of ODR can be better exploited in light of the two ODR platforms examined.

Suggested Citation

  • M. J. Schmidt-Kessen & R. Nogueira & M. Cantero Gamito, 2020. "Success or Failure?—Effectiveness of Consumer ODR Platforms in Brazil and in the EU," Journal of Consumer Policy, Springer, vol. 43(3), pages 659-686, September.
    • Handle: RePEc:kap:jcopol:v:43:y:2020:i:3:d:10.1007_s10603-020-09448-y
    DOI: 10.1007/s10603-020-09448-y
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    References listed on IDEAS

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    1. Kim Economides & Alfred A. Haug & Joe McIntyre, 2013. "Are Courts Slow? Exposing and Measuring the Invisible Determinants of Case Disposition Time," Working Papers 1317, University of Otago, Department of Economics, revised Nov 2013.
    2. Franziska Weber, 2015. "Is ADR the Superior Mechanism for Consumer Contractual Disputes?—an Assessment of the Incentivizing Effects of the ADR Directive," Journal of Consumer Policy, Springer, vol. 38(3), pages 265-285, September.
    3. Shavell, Steven, 1995. "Alternative Dispute Resolution: An Economic Analysis," The Journal of Legal Studies, University of Chicago Press, vol. 24(1), pages 1-28, January.
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