1. 1.
Outcomes of the Pilot Program
implemented by the Online Dispute
Resolution (ODR) Initiative in
the framework of the eConfianza Trustmark

2. contenido 2.
Contents
I. Introduction 3 III.2. Success Cases: Groupon Argentina & Geelbe 9
II. Best Practices for e-Commerce and III.3. Revelant Issues 10
5
Online Dispute Resolution
III.4. Improving Industry Practices 10
II.1. Basic notions on autoregulation and
Best Practices for e-Commerce
5 III.5. The relevance of the Neutral´s role in terms of transparency 11
II.2. The eConfianza Regional Initiative of eInstituto (ILCE) 6 IV. Final Thoughts 12
II.3. Basic notions on Online Dispute Resolution for the Digital Economy 6 V. Authors 13
II.4. The ODR Initiative for the Digital Economy of eInstituto (ILCE) 8 CONSULTED BIBLIOGRAPHY 14
III. Outcomes of the ODR Pilot implemented
in the framework of eConfianza: fourth quarter 9
III.1. General Outcome 9

3. Introduction 3.
I. Introduction
The development of information and communication technologies (ICTs) has E-Commerce b2c in Latin America
transformed and will keep transforming the Economy and the way of doing Business.
34,5
Studies have projected that the volume of Internet online and mobile users
that do commercial activities through the Internet in Latin America will keep 27,6
growing in the next years, being Latin America one of the regions that have led 21,6
e-Commerce and e-Business growth rates in the world.
15,6
In the last years, average annual growth of e-Commerce B2C (between 10,6
7,5
Business and Consumers) has been around 40% in Latin America, being 4,9
3
considered nowadays a strategic tool for the economic growth and the increase 1,9
of competitiveness and transparency in the region.1
2003 2004 2005 2006 2007 2008 2009 2010p 2011p
Inevitably, part of these online transactions (normally high volume low value Reference 1: In billions of US Dollars
transactions) will end up in a dispute. Reference 2: B2C refers to closed online transactions including local and cross border,
C2C, tourism and taxes.
Source: América Economía Intelligence (sept 2010)
For instance: goods that do not arrive to destiny or do not arrive on time, online
contracted services that do not match the buyer´s expectations, impossibility
of arranging an appointment with a provider of a service offered by a discount more comfortable, faster, cheaper, because e-commerce offered an efficient
coupon company, received goods of a different quality or quantity, among others. worldwide market in just one click. But then, when a dispute arises, this world
of online efficiency and happiness disappears for him/her in front of his/her own
The kind of problems described, as well as others, —in particular, those involving eyes, and he/she finds out only obstacles, challenges and traditional territorial
consumers—, might end up mostly unsolved. “These issues must be addressed borders and offline/expensive solutions. Where to go? Consumer Agencies?
for the region to keep pace in the growth of e-commerce and promote cross border Lawyers? And, what about doubts and uncertainties on how to keep digital
interchange. Not doing so might lead to a loss of consumer trust in the Digital Economy”. proof valid? What about costs? In sum, frustration and fear will appear. The
possible remedy threatens to be more complex that the original “illness”.
In the best cases scenarios, customer support services might offer some kind of
solution to buyers, but in many cases and for different reasons, those services will not When the cross border factor is added to this equation, more uncertainties arise.
be enough to solve existing problems, or will only solve problems in a partial way, leaving How complex, time consuming and expensive will be to be able to determine
the buyer unsatisfied and disappointed with the whole online buying experience. applicable law and jurisdiction in a cross border B2C e-commerce transaction?
Thus, the cross border factor brings even higher levels of vulnerability to our
Following an imaginary buyer´s experience, it is possible to imagine him/ imaginary buyer/consumer.
her frustrated: he/she wanted to buy online because it was supposed to be
(1) For more information see Estudio de América Latina realizado por VISA/America Economía available at http://especiales.americaeconomia.com/2010/comercio_electronico/estudio.php

4. Introduction 4.
From an e-commerce company´s perspective, the described circumstances also
represent a challenge, because most companies do not have online adequate
mechanisms to address high volume low value disputes with buyers. Meaning,
companies need to face the challenge of having claims coming in from multiple
fronts, which are also expensive and complex to address in an efficient manner.
This scenario leads to losses both to the industry and to society as a whole, and
constitutes an important challenge in terms of building trust for the Digital Economy.
the problem
1 2 3
e and m Commerce transactions Existent Solutions: offline,
Disputes
Local and Cross Border complex, expensive, uncertain
Applicable Law and Jurisdiction?
Collection of digital proof for courts?
Cost / Time
Discouragement for the Digital Economy Perception of “out of legality”
Loss for Society

5. Best Practices for e-Commerce and Online Dispute Resolution 5.
II. Best Practices for e-Commerce
and Online Dispute Resolution
II.1 Basic notions on autoregulation e-Commerce Best Practices
and Best Practices for e-Commerce
Digital Economy and e-commerce will not wait to the legal framework to be
perfect in order to keep growing locally and at a cross border level. Improving
the local regulatory framework for online commercial activities is an ongoing Company´s
challenge for the countries of the Latin American region. Moreover, improving Information
the cross border regulatory framework for these activities constitutes a higher
challenge that requires harmonizing regional and global efforts. Online
Cybersecurity Online
& means of Publicity
In this context, the private sector, in different parts of the globe has been laying payment
in the so called auto-regulation, in an attempt to generate higher levels of trust in
their customers, improve their public image and differentiate from competitors.
As part of this process, Codes of Conduct for e-Commerce Best Practices
have emerged, addressing relevant topics for the industry, such as: the way
Data & Online
in which online offer of goods and services needs to be done, minimum Consumer
standards for online transactions, personal data treatment, consumer contracts
Protection
protection standards for cyberspace, customer support requirements,
dispute resolution, among others.
A side, a summary of the issues addressed by most Codes of Conduct for Online Customer
e-Commerce Best Practices: Dispute Support
Resolution
These Codes are adopted by companies as minimum standards that regulate
online commercial activities and, in particular, online interaction with the
company´s users and consumers.

6. Best Practices for e-Commerce and Online Dispute Resolution 6.
II.2 The eConfianza Regional Initiative The eConfianza Regional Initiative of eInstituto
of eInstituto (ILCE)
One possible option to implement auto-regulatory mechanisms is the use of
seals of trust, also known as Trustmarks. Companies become members to a
Trustmark, and by doing so, are declaring to abide by a certain Code of Conduct Seals of Trust
for e-Commerce Best Practices.
Services:
The eConfianza Regional Initiative of eInstituto has the mission to promote trust » Deposit of Digital Contractual Documents
in online commercial activities in the Latin American region. The initiative focuses » Online Dispute Resolution
on the development and improvement of the online offer, by the spreading and » Reputation System
implementation of Best Practices for the industry.
Membership implies to abide by the “eConfianza Code”
The initiative promotes the adoption of the eConfianza Trustmark and the for e-commerce Best Practices
“eConfianza Code” for e-commerce Best Practices. When a company gets the
membership to the Trustmark it is also accepting to conduct business and to
perform commercial activities in general, following those standards, which are
the industry best practices regional standards, based on the legal framework and
practices established in the Latin American context. In this sense, the “eConfianza
Code” is a flexible and efficient tool to build trust in the Regional Digital Economy.
II.3. Basic notions on Online Dispute Resolution
The initiative also offers other services to the member companies through its for the Digital Economy
platform, such as the digital deposit of legal documents (Terms and Conditions
and Privacy Policies) and a reputation system. In the last 30 years many countries of the region decided to adopt alternative dispute
resolution (ADR) such as Negotiation, Mediation and Arbitration, as integral part or
Last but not least, eConfianza acts in the role of a third party neutral, whenever as a complement to their legal systems.
a dispute arises between a company adhered to the Trustmark and one of its
clients, through the implementation of the Online Dispute Resolution pilot. The most recent and innovative revolution in the field of ADR has been the intersection
between ADR and information and communication technologies (ICTs), giving birth to
ODR services offered through eConfianza constitute the first pilot program what has evolved into what we nowadays refer to as Online Dispute Resolution. ODR
implemented to date by eInstituto´s ODR Initiative. The 2011 outcomes of this is being applied in some countries and regions together with an important work being
first experience are presented in section III of the present document. done by professionals and organizations, on spreading, research and development.
Information and Communication Technologies are applied to all or part of the
resolution processes, through platforms and systems specially designed for the
resolution of disputes.
2
UNCITRAL Working Group III on ODR has elaborated a definition for ODR still
under construction that states: ODR “is a system for resolving [cross-border]
(2) UCITRAL: United Nations Commission on International Trade Law

7. Best Practices for e-Commerce and Online Dispute Resolution 7.
disputes where the [procedural aspects of the dispute resolution mechanisms are]
[procedure for dispute resolution is] conducted and facilitated through the use of
the solution
electronic communications and other information and communication technology; Online Dispute Resolution as
(A/CN.9/WG.III/WP.107) e-commerce Best Practices standard
From an e-Commerce Best Practices perspective, it is possible to argue that
in the e-commerce context, ODR constitutes a vital ally to promote access to
redress for buyers and sellers that conduct online commercial activities, also at
a local and at a cross border level. Alternative Dispute Resolution mechanisms (Nego-
tiation, Mediation and Arbitration) articulated with
In the present scenario, international experts, both academics and practitioners, information and communication technologies (ICTs) to
recognize the need to build third party neutral online services to address efficiently address e-commerce B2C disputes.
e-commerce disputes in order to strengthen a healthy and prosperous Digital Economy.
In the picture a side we present some characteristics of ODR when applied as a
Best Practices standard for e-commerce disputes.
From the industry perspective, being able to use simple and efficient online services » Third Party Trained Nuetral
to deal with buyer-seller disputes, appears as a great advantage, in comparison with » Specially designed platforms
expensive and bureaucratic traditional dispute resolution services available, such as
» Companies accept to participate in the processes
consumer protection agencies, or the courts. (Be aware that in most Latin American
countries ADR and/or small claim courts are not always available options). before hand
» Voluntary and free of charge for consumers
Furthermore, ODR offers the potentiality of solving relevant challenges such » Parties do not have to quit other available remedies
as distance, applicable law and jurisdiction. For those reasons, for cross border
companies ODR providers might appear as vital business collaborators.
Not less important is that online mechanisms to solve disputes promote collaboration
between the parties in dispute as well as creativity, and bring to companies useful
information and insight in order to improve its performance in the market. ODR Advantages: Potential to overcome distance, language,
statistics and reports might become relevant to companies in order to improve jurisdiction and applicable law challenges. Cost and
delivery of services and overcome recurrent challenges. time saving. Efficiency. Standarized redress, access to
Also, nowadays, it is possible to find ODR applications for mobile devices. This redress in an online environment, etc.
is crucial for the Latin American region and for the development countries in
general, bearing in mind the high penetration rates of mobile technology among the Challenges: Cultural change, enforcement, training,
population, especially when compared to broadband penetration and other means sustainability, etc.
to access the Internet.

8. Best Practices for e-Commerce and Online Dispute Resolution 8.
Finally, ODR Providers, from their neutral role, have the capacity to improve The ODR Regional Initiative of eInstituto
issues of balance of power among parties to a dispute, helping to create a better
and legitimated environment that benefits e-commerce practices and helps to
build higher levels of trust and satisfaction among online buyers. By doing so,
ODR Providers are also helping to improve the reputation of the companies Lead the implementation Regarding disputes that arise in
involved in the ODR processes. of ODR services commercial online activities
In summary, ODR providers working as third party neutrals for e-commerce
disputes bring trust, efficiency and legitimacy to online commercial transactions.
To meet the needs of
II.4. The ODR Initiative for Online Buyers and Sellers
the Digital Economy of eInstituto (ILCE)
eInstituto is a non for profit organization of regional character, organized as a
federation of e-commerce chambers and associations. Its mission is to promote
the development of the Digital Economy in Latin America. » Participation as expert ONG at UNCITRAL WG on ODR
» Participation at international Pilot on Cross Border ODR - ODRex-
In this context, at the end of 2009, eInstituto created its ODR Regional Initiative change.com
for the Digital Economy, to promote cooperation and collaboration for the » Implementation of the First Regional Pilot through eConfianza Trustmark
deployment of ODR services in the Latin American region. More than 100 cases of member companies
solved online in record time.
This initiative seeks to lead and assist the implementation of ODR efficient » UDRP Provider Initiative for Latam
services in the region to be able to address disputes arising from the Digital » Code for Best Practices for ODR in Latam – work in progress.
Economy, local or cross border in character. The challenge is also to assist the
implementation of international standard ODR services which will also meet the
regional needs and be adequate to the Latin American context.
The ODR initiative has focused in spreading ODR in the region through the Vision:
participation in regional events, online TV programs, generation of online Building trust in the Digital Economy by improving efficiency
courses on ODR, International Conferences, content generation (academic, and best practices online
informative and educational written and multimedia materials), among others.
During 2011 and as part of its action plan, the initiative implemented the First
Also, the ODR initiative team has participated as expert NGO with observer status at Pilot ODR Program to address e-commerce B2C disputes, in the context of its
UNCITRAL ODR Working Group meetings. In those meetings participants discuss eConfianza Initiative. The outcomes of this first pilot experience are analyzed in
the creation of a legal international framework for cross border e-commerce B2B the next section of this document.
and B2C disputes. The team is also actively participating at the international pilot
odrexchange (www.odrexchange.com) for the creation of infrastructure for a
global ODR system which is expected to apply UNCITRAL procedural rules.

9. Outcomes of the ODR Pilot implemented in the framework of eConfianza: fourth quarter of 2011 9.
III. Outcomes of the ODR Pilot implemented in the
framework of eConfianza: fourth quarter of 2011
III.1 General Outcomes III.2 Success Cases:
Groupon Argentina & Geelbe
During 2011 the ODR initiative implemented the First Pilot ODR Program in the
framework of the services offered through eConfianza´s platform. It is important to highlight the good willing and performance of two of the
participating companies: Groupon Argentina y Geelbe, which are considered
The Pilot promotes a concrete and effective way of applying Best Practices to success cases for the first implementation stage of the Pilot.
e-commerce, and leads actions to collaborate in the strengthening of a healthy
ecosystem for the Digital Economy of the region. In both cases, the companies took the risk of having the trustmark visible in
their websites, which made it possible to their users to contact eConfianza to
Fourth quarter of 2011 in numbers: ask questions and to initiate cases.
Pilot of the ODR Regional Initiative of eInstituto
When a case was initiated by a buyer, both companies were receptive and
Implemented through eConfianza
collaborative, and helped to find adequate and fast solutions for the buyers.
When addressing the cases it was clear that both companies have been investing
in human resources and had adequate internal management systems in place.
» Online dispute resolution, for companies members of eConfianza, and In the case of Groupon Argentina, it is possible to highlight the company´s
its customers. capacity to offer flexible and creative solutions oriented to customer satisfaction
and best practices, in some cases going beyond the customer´s expectations.
Outcomes Oct/Dec 2011
» Collaboration for the resolution of 80 cases In the case of Geelbe, it is remarkable their ability to address cases in multiple
» Average 3.5 days per case jurisdictions such as Argentina, Mexico and Colombia, in an efficient and organize way.
» 95% agreement rate
» Argentina, Colombia, Peru, Mexico, Spain In both cases, as this was a pilot experience, it was crucial the selection of a
» Success Cases: Groupon Argentina and Geelbe single responsible from the company to follow closely the cases with the third
party neutral eConfianza.

10. Outcomes of the ODR Pilot implemented in the framework of eConfianza: fourth quarter of 2011 10.
III.3. Revelant Issues Testimonials:
ODR Pilot implemented at eConfianza
eConfianza collaborated in the role of third party neutral for the accomplishment
of 80 cases initiated by clients of different companies adhered to the eConfianza
trustmark. Most cases were the following kind of e-commerce disputes:
• Non delivered goods: late deliveries, impossible deliveries » Mariana: : “When I purchased online I did not really trust everything
due to stock problems, etc will be ok, but now that I know about eConfianza and the system offered
• Delivered goods but with problems (different size or quantity) to solve disputes online I am more confident.” (she started a case which
• Goods or service of a quality or characteristics resulting different was satisfactory solved)
from the information available at the online offer
• Unattended unsubscribing processes » Julián: “Thanks for the prompt answer, the company already sent the
• Customer Support: failure in the answer of questions, evasive answers, etc. goods and I received them in conformity. It was important for me to know
• Unsatisfied special online offers or discounts during the waiting period that I was not being scammed and that confi-
• A variety of problems related to providers of services dence came from you (from eConfianza).”
offered by coupon companies
• Duplicate processing
• Errors in the cancelation of purchases
» Cecilia: “Thanks eConfianza! I am thankful for your prompt intervention
• Other
and the solution to my case. I have already received a refund!”
Cases were addressed at the Pilot Program in search of a solution applying
e-commerce Best Practices.
eConfianza, once intervening in a case as neutral, follows the case and maintains
an open online channel of communication with both parties during the process III.4. Improving Industry Practices
and up to its closure. Cases might be submitted to a reopening process, when
the parties claim an agreement was not fully implemented or respected. Regarding the region´s customer support practices, it is important to note that those
services solve basic issues, but many others remain unattended, or partially attended.
Reopening was done in 3 of the 80 cases addressed and in all these three
cases, parties arrived to a definitive and mutually satisfactory resolution. Historically, the Latin American consumers seemed to be used to high levels of
bad treatment or mistreatment by local customer support services. Thus, when
It is important to highlight that eConfianza´s third party neutral role constituted a basic solutions where offered to them to any given problem, they considered
great value factor for the pilot experience, which helped create credibility among themselves relatively satisfied.
both the companies and their customers. This point will be resumed below.
This situation started to change in the era of information and communication
technologies applied to commercial activities. The average consumer of the
region is more informed, and this maturity represents new challenges for
companies: many consumers, even when getting basic or partial solutions
from customer support services, won´t buy again from the merchant due to
the problems they faced and/or time lost. Another fraction of these consumers

11. Outcomes of the ODR Pilot implemented in the framework of eConfianza: fourth quarter of 2011 11.
when facing non solved problems will try other options, such as legal options, III.5. The relevance of the Neutral´s role
and/or the use online forums and social networks to express dissatisfaction, and
thus hurt the company´s reputation.
in terms of transparency
Consumers of adhered companies express great interest regarding eConfianza´s
From this perspective, eConfianza´s intervention seeks to help implement
third party neutral role. In general terms, they are thankful and appreciate
solutions that help companies differentiate with more flexible and creative
the fast and adequate intervention, as well as the assistance. They consider
outcomes that will bring redress to customers, and when needed, are expected
eConfianza´s existence as a positive step towards their needs and are thankful
to become more comprehensive than basic and/or plain solutions offered by
to be offered an appropriate and free of charge mechanism to start claims
customer support services in order to bring satisfaction to both parties.
against online sellers.
From this perspective, eConfianza helps companies to implement solutions to
It is important to highlight that users and consumers that participated in the
differentiate with more flexible and creative outcomes, while bringing redress to
pilot, consider, in general, that they have achieved better results, and in less
customers. These solutions are intended to go beyond basic standards and to
time and with no extra costs, thanks to eConfianza´s intervention as neutral.
bring satisfaction to both parties.
Moreover, many have stated they believe they have achieved fairer agreements
thanks to eConfianza´s intervention as neutral.
This approach brings the following benefits:
This perception does not change even if they are informed that the company
might have offered a similar solution through its customer support services.
At the same time, companies benefit from eConfianza´s third party neutral role,
Improves Industry Practices: difference with traditional commerce in many ways, and especially by eConfianza´s assurance of e-commerce Best
Practices, which benefits the whole e-commerce ecosystem, improving the le-
Access to redress for customers:
perception of legality in the online environment
International standards that improve relationships with customers
Eficciency: costs and time savings, statistics, standarized solutions
Customer Loyalty: innovative strategies, more confidence and trust
Limitation of the risk of being sued at traditional courts
Reputation protection for companies members of eConfianza

12. Final Thoughts 12.
iV. Final Thoughts
The implementation of ODR services through eConfianza´s platform constitutes a great
step to strengthen the e-commerce ecosystem and the Latin American Digital Economy.
We are sure that a positive buyers´ experience and the satisfactory resolution of disputes
turn users and consumers into “trust-amplifiers” in online commercial activities.
From both eInstituto´s initiatives, ODR and eConfianza, we are committed to
build trust in the Digital Regional Economy and we will keep working to bring
more and better services.
During 2012 we will be offering online courses, training for companies´ human
resources teams, strengthening agreements with ODR providers in other regions
in order to be able to offer cross border services, improving our platform and
our system design and consolidating the third party neutral role of eConfianza
with technology facilities and innovation, according to the needs of the industry.
By the strengthening of our services we will be achieving a substantial
improvement in quality and performance standards, applying Best Practices,
and bringing higher levels of transparency, always with the mission of building
trust in the regional Digital Economy in benefit or our societies as a whole.

13. authors 13.
V. authors
gabriela szlak Juan Pablo Altmark
Gabriela Szlak is Director of the Online Dispute Resolution (ODR) Regional Juan Pablo Altmark is Director of eConfianza Regional Program of the Latin
Program for the Digital Economy at the Latin American eCommerce Institute American eCommerce Institute – eInstituto/ILCE. Since 2011 he is Consultant
– eInstituto/ ILCE. Since 2011 she is leading a pilot for eCommerce (B2C) for Mercosur Digital on issues related to ICT Law, eCommmerce and eBusiness
disputes in the region, through the services of eConfianza regional trustmark, and Director of the online course on eCommerce of Virtual School Mercosur. He
and doing consultancy work for Mercosur Digital on issues related to ICT Law, is a Lawyer graduated from University Torcuato Di Tella. He has specialized on
eCommmerce and eBusiness. She is a Lawyer and a Prejudicial Mediator, ICT Law and Telecommunications Law, with emphasis on the Internet and on
specialized in ICT Law, Business and Civil Law. She practices in Buenos Aires online commercial activities. He is a partner at Estudio Altmark &Brenna Law
at Estudio Rosz. She has postgraduate studies in eBusiness Management Firm. Regarding the generation of online trust he has been a speaker in local
(Georgetown University /USAL), and in Conflict Resolution and Mediation. and international events.
Regarding ODR she has been a speaker at local and international conferences
and courses, in Vancouver BC, Mexico DF, New York City, and Buenos Aires,
and also at virtual events such as Cyberweek (2009/2010/2011), Internet Day
2011 (Argentina), etc. She also represents eInstituto at UNCITRAL WG III on
ODR. She writes a blog (in Spanish) and has written articles for specialized blogs
and virtual magazines, and the chapter “ODR in Latin American” (in English)
for the book “Online Dispute Resolution: Theory and Practice: A Treatise on
Technology and Dispute Resolution” (Eleven International Publishing). She has
also been an International Public Law T.A. at the University of Buenos Aires,
Argentina, Faculty of Law, and contributed to two books on the subject. Gabriela
is an alumna of ICANN since 2010 and a member of the Business Constituency
of ICANN representing eInstituto since 2012. She is also an alumna of South
School on Internet Governance and an UNCTAD fellow.

14. 14.
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