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Online ADR Providers Plan Broader Range of Settlement Services
By: Justin Kelly, ADRWorld.com
June 12, 2000 - Two leading providers of online alternative dispute resolution systems are planning to expand their services to encompass a broader range of disputes and a more comprehensive set of settlement tools, including Internet-based arbitration and mediation and a seal of approval for best practices, according to company officials.
Officials of SquareTrade, which currently mediates disputes between online auction participants at the popular eBay site, announced last week that the company will expand into the business-to-business marketplace and create a "trust mark" for businesses who adhere to best practices. Meanwhile, Cybersettle.com, which offers a highly automated double-blind bidding system to settle insurance disputes, will soon offer online arbitration and mediation, company officials said.
Steve Abernethy, president and chief executive officer of SquareTrade, told ADRWorld.com that the company's trust-mark or "seal" program will help consumers and businesses identify companies that are committed to online ADR and that meet certain practices to be developed by SquareTrade. Those practices will include effective customer service, and companies' systems will be verified by SquareTrade, Abernethy said. The seal will be a "third-party signal of reputation, good customer service and a commitment to online dispute resolution" for businesses and consumers, he said.
Abernethy also said his company is moving into the business-to-business marketplace by partnering with Onvia, a leading website that helps small businesses sell and trade products and services. The SquareTrade dispute resolution system will be tied directly to Onvia, allowing businesses in the Onvia marketplace to quickly and efficiently settle their disputes through the SquareTrade system, he added.
SquareTrade was formed in August 1999 to handle all types of business and consumer complaints regarding products and services bought on the Internet, and the company has been testing its services in a pilot project with eBay. Ethan Katsh, co-director of the Center for Dispute Resolution and Information Technology at the University of Massachusetts at Amherst, said the company's move into the business-to-business marketplace is a natural next step because of the "enormous potential for business." The business-to-business marketplace has "high-value disputes' and provides better commercial opportunities for SquareTrade and other online dispute resolution providers, he added.
Cybersettle to Expand Settlement Services
James Burchetta, chairman and co-founder of Cybersettle.com, said his company plans to broaden its services by offering parties the ability to use online mediation, online arbitration, the company's current bidding system, or a combination of those services to settle any dispute that may arise. Burchetta also said Cybersettle.com will begin partnering with online marketplaces in July to provide those services.
Cybersettle.com presently uses a patent pending "double-blind bid" system that is designed particularly for monetary disputes and is used largely by parties to insurance disputes. The company's new services will be able handle any disputes that arise between businesses and consumers in e-commerce transactions, Burchetta said.
Henry Perritt, dean of the Chicago-Kent Law School, said Cybersettle's decision to offer a wider variety of services is important because online dispute resolution systems should involve some human interaction and be capable of handling disputes that involve more than money. Online dispute resolution systems should not be entirely automated because most disputes "need the human element" for the parties to achieve resolution, he said. According to Perritt, the double-blind bid system "is not a truly effective dispute resolution tool" because most disputes involve more complex issues that warrant arbitration or mediation.
Reprinted by permission, ADRWorld.com
Copyright 2000, ADRWorld.com |
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