Access to Justice in Transnational B2C E-Commerce (eBook)

Acknowledgements 6
Abbreviations and Constructed Terms 8
Contents 10
List of Figures 14
List of Tables 16
Chapter 1: Introduction 17
1.1 Background 17
1.2 Aim and Structure of Research 19
1.3 Contribution to the Existing Academic Debates 22
1.4 Methodology 24
1.5 Scope of Research 24
Chapter 2: Consumer Protection in B2C E-Commerce: Enhancing Consumer Confidence 27
2.1 Introduction 27
2.2 Transnational B2C E-Commerce, Economic Growth, and Emerging Markets 28
2.2.1 A Brief History of B2C E-Commerce 28
2.2.2 Distinctive Features of B2C ``E-Transactions´´ 30
2.2.2.1 Absence of Face-to-Face Communication 30
2.2.2.2 Moveable, Dynamic, and Voluminous Information 31
2.2.2.3 Cross Border/Transnational Nature 32
2.2.3 B2C E-Commerce and Global Economic Growth 33
2.2.4 B2C E-Commerce and Economic Growth in Emerging Markets 35
2.2.5 B2C E-Commerce and Consumer Confidence 38
2.3 Competing Rationales for Consumer Protection 42
2.3.1 Traditional Rationale I: Lack of Knowledge and Information Asymmetries 43
2.3.2 Traditional Rationale II: Lack of Bargaining Power and Standard Terms 45
2.3.3 Traditional Rationale III: Behavioral Economic Problems 47
2.3.4 Traditional Rationale IV: Failures of Traditional Forms of Litigation 49
2.3.5 The Emergence of ``Consumer Confidence´´ in Global Debates on B2C E-Commerce 50
2.4 Interim Conclusion 52
Chapter 3: Access to Justice: A Goal for Consumer Protection 53
3.1 Introduction 53
3.2 Historical Debate on Access to Justice 54
3.2.1 Review of Main Points from the Nineteenth Century 54
3.2.2 Initial Focus on Legal Representation 56
3.2.3 Movement Toward a New Kind of Rights: The ``Diffuse and Fragmented Rights´´ 57
3.2.4 ``Universal Thoughts´´ on Access to Justice 60
3.3 Contemporary Debates on Access to Justice 61
3.3.1 New Movements of Access to Justice 61
3.3.2 Enhancing Access to Justice 63
3.4 Important Underlying Consumers´ Access to Justice 64
3.4.1 Consumers´ Access to Justice I: Socio-Legal Perspective 65
3.4.2 Consumers´ Access to Justice II: Economic Perspective 67
3.4.3 Contemporary Debates 70
3.4.3.1 Ex Ante Mechanisms Versus Ex Post Mechanisms 70
3.4.3.2 Individual Interests Versus Public Interests 72
3.4.3.3 State Regulations Versus Self-Regulations 74
3.4.3.4 Consumers Protection Versus Global Economic Interests 76
3.4.4 Enhancing Consumers´ Access to Justice 77
3.5 Interim Conclusion 78
Chapter 4: Towards a Multidimensional Approach to Access to Justice: Setting a Framework for Consumer Protection in B2C E-Comm... 81
4.1 Introduction 81
4.2 Sufficient and Accurate Information and the Ability to Digest Information 84
4.3 Availability of Variety of Goods and Services at Appropriate Prices 90
4.4 Freedom of Choice and Ability to Make Rational Decision 93
4.5 Fair Terms and Conditions 97
4.6 Right of Withdrawal 100
4.7 Performance of Obligations 102
4.8 Consumers´ Privacy 104
4.9 Consumers´ Safety 105
4.10 Reasonable Cost of Transaction 107
4.11 Right to Conduct Dispute Resolution in a Convenient Location 109
4.12 Access to Effective Dispute Resolution Process 111
4.13 Enforcement of Remedies or Redress 114
4.14 Fair Trading Practices 116
4.15 Recognition of Consumers´ Rights and Their Role in the Market 118
4.16 Interim Conclusion 120
Chapter 5: Substantive Mechanisms for Achieving Access to Justice 122
5.1 Introduction 122
5.2 Standard Term Mechanism 124
5.2.1 Overview of Standard Term Validation Principles 125
5.2.1.1 Click Wrap 125
5.2.1.2 Browse Wrap 126
5.2.1.3 Shrink Wrap 127
5.2.2 Evaluation of Standard Term Validation Principles 128
5.2.3 Overview of Unfair Term Regulations 131
5.2.4 Evaluation of Unfair Term Regulations 132
5.2.4.1 Arbitration Clause 134
5.2.4.2 Choice of Forum Clause 134
5.2.4.3 Applicable Law Clause 135
5.2.5 Overview of Unconscionability Doctrine 138
5.2.6 Evaluation of the Unconscionability doctrine 140
5.3 Information Disclosure Mechanism 147
5.3.1 Overview of Information Disclosure Rules 148
5.3.1.1 The Directive on E-Commerce 148
5.3.1.2 The Directive on Consumers Rights 149
5.3.2 Evaluation of Information Disclosure Rules 150
5.3.2.1 Information Overload 152
5.3.2.2 Delayed Notice 153
5.3.2.3 Technological Variations 155
5.3.2.4 Input Error 157
5.3.2.5 Ineffective Enforcement 158
5.4 Withdrawal Mechanism 160
5.4.1 Overview of the Withdrawal Rules 160
5.4.2 Evaluation of the Withdrawal Rules 162
5.4.2.1 The Start and the End of the Right of Withdrawal 165
5.4.2.2 Difficulties in Exercising of the Right of Withdrawal: Form Requirement 167
5.4.2.3 Failure to Comply with the Cooling Off Period´s Obligations 168
5.4.2.4 Non-exercising of Withdrawal Right 169
5.5 Privacy Mechanism 172
5.5.1 Overview of the Privacy Protection Rules 173
5.5.2 Evaluation of the Privacy Protection Rules 175
5.5.2.1 Notice and Consent 179
5.5.2.2 Control and Security 183
5.5.2.3 Enforcement 186
5.6 Interim Conclusion 189
Chapter 6: Procedural Mechanisms for Achieving Access to Justice 191
6.1 Introduction 191
6.2 The Small Claim Mechanism 193
6.2.1 Overview of Small Claim Procedure 194
6.2.2 Evaluation of Small Claim Procedure 196
6.2.2.1 Limited Scope of the ESCP 197
6.2.2.2 Exclusiveness for Transnational Disputes 198
6.2.2.3 Costs of Small Claim Litigation 199
6.2.2.4 Exception of the ESCP 200
6.3 Collective Redress Mechanism 200
6.3.1 Overview of Group Action Procedure 201
6.3.2 Evaluation of Group Action Procedure Regulation 203
6.3.2.1 Cost of Group Litigation 206
6.3.2.2 Long Duration and Complexity of Procedure 207
6.3.2.3 Lack of Consumer Incentive in the Opt-In System 208
6.3.2.4 Difficulties Redress Distribution and Enforcement 210
6.4 Regulatory Agency Mechanism 212
6.4.1 Overview of Consumer Ombudsmen 213
6.4.2 Evaluation of Consumer Ombudsmen 216
6.4.2.1 Lack of Funding 218
6.4.2.2 Difficulties of Prioritizing Duties 219
6.4.2.3 Ineffective Sanctions 220
6.4.2.4 Difficulties of Enforcement 221
6.5 Interim Conclusion 223
Chapter 7: Transnational B2C E-Commerce: Legal Harmonization and the Need for a ``Second Best Option´´ 227
7.1 Introduction 227
7.2 Overcoming the Difficulties from Transnational B2C E-Commerce via Legal Harmonization 228
7.2.1 Harmonization via Private International Law 228
7.2.1.1 Jurisdiction Principles 229
7.2.1.2 Applicable Law Principles 233
7.2.1.3 Transnational Recognition and Enforcement of Judgment 235
7.2.2 Harmonization via Substantive Consumer Law 236
7.2.3 The Limits of Legal Harmonization and the Need for a ``Second Best Option´´ 239
7.3 Towards the ``Second Best Option´´: Access to Justice Through Private Ordering 242
7.3.1 Dispute Avoidance Mechanisms 243
7.3.1.1 Reputation or Feedback Mechanism 243
7.3.1.2 Trustmarks and Codes of Conduct Mechanism 245
7.3.1.3 Electronic Payment Mechanisms 247
Chargeback 248
PayPal 248
Escrow Service 249
7.3.2 Dispute Settlement Mechanisms 250
7.3.2.1 Automated Resolution System Mechanism 251
7.3.2.2 Assisted Online Mediation Mechanism 252
7.3.2.3 Online Arbitration Mechanism 254
7.3.3 The Potentials of Private Ordering in Transnational B2C E-Commerce from the Perspective of Access to Justice 255
7.3.3.1 Convenience, Time and Cost Savings: More Effective Mechanisms 255
7.3.3.2 Empowering Consumers Through Communication 256
7.3.3.3 Handling Negative Emotion and Psychological Barriers 256
7.3.3.4 Overcoming Technological Involvement and Transnational Nature 257
7.3.3.5 Increase Consumers´ Access to Justice and Confidence 258
7.3.4 The Limitations of Private Ordering from the Perspective of Access to Justice 261
7.3.4.1 Lack of Face-to-Face Communication 262
7.3.4.2 Technological Difficulties and Imbalances 262
7.3.4.3 Fragmentation and Lack of Transparency 263
7.3.4.4 Lack of Funding 264
7.3.4.5 Lack of Consumers´ Awareness 265
7.4 Interim Conclusion 266
Chapter 8: Improving Consumers´ Access to Justice in B2C E-Commerce: Private Ordering and State as Intermediary 268
8.1 Introduction 268
8.2 Overcoming Limitations: The Potential of an Intermediary 269
8.2.1 What Is an Intermediary? 269
8.2.2 What Is an Intermediary in Facilitating Private Ordering? 271
8.2.3 Reasons for an Intermediary in Facilitating Private Ordering 273
8.2.4 What Are the Possible Options? 275
8.3 State as an Intermediary in Facilitating Private Ordering 278
8.3.1 Transnational Nature of B2C E-Commerce and Globalization 279
8.3.2 Failure of the Market from the Perspective of Access to Justice 283
8.3.3 Public Interest Orientation 284
8.4 State Role as an ``Intermediary´´ in Facilitating and Extracting the Benefits of Private Ordering 284
8.4.1 Public Funding 285
8.4.2 Information Dissemination 286
8.4.3 State Advisory 288
8.4.4 State Monitoring 292
8.4.5 Global Network 295
8.4.6 State as Intermediary in Facilitating Private Ordering in the Emerging Market 297
8.5 Interim Conclusion 300
Chapter 9: Conclusion 303
9.1 Research Summary 303
9.2 Research Findings 305
9.3 Final Comments and Recommendations for Further Research 308
Bibliography 311
1. Books and Journal Articles 311
2. Reports, Working Papers, Thesis, Web Publications and Others 320