As online commerce has grown, so has the necessity for a dispute resolution system to handle any disagreements that may arise. In 1996, researchers at the University of Massachusetts and the University of Maryland took the first steps towards developing ODR programmes. eBay’s online mediation model for buyer-seller disagreements was launched in the year 1999. To help its users work out their differences, eBay implemented a system of online mediation. In just two weeks, this project was able to settle 200 disagreements. In 2010, eBay’s online mediation process resolved more than 60 million conflicts, allowing the company to reach more equitable outcomes for all parties involved. The global success of these relatively small platforms has attracted the interest of governments throughout the world. In 2004, New York County was the first in the nation to use ODR. After seeing the success of ODR systems like Brazil’s Consumidor.gov and Europe’s European Online Disputes Resolution Platform, governments around the world began adopting similar systems.

In June 2020, Niti Aayog, in India, brought together key stakeholders, including senior judges of the Supreme Court, secretaries from key government ministries, and leaders of the industry, for advancing ODR in India. Thereafter, on June 10, 2021, a handbook was released containing rules, policies, and expectations from the system. India is in grave need of a system like ODR because the Indian judicial system is under tremendous pressure with over 4.7 million cases pending across different levels of the judiciary. Due to this, there is a huge backlog of cases that are pending for the past 30 years.

ODR is time and cost-effective, and this is a very important factor in delayed justice. The economic burden associated with dispute resolution can hinder a person’s access to justice. Anyone with the help of ODR can do the arbitration from anywhere, and ODR also has the potential to reduce legal costs. The system of ODR is quicker at giving awards and resolving issues than ADR. Since it’s conducted online, the synchronisation of schedules is also done with much ease. It also eliminates the bias made by human judgement as it is much more secure and strict and the proceedings are easily available, and any higher authority can review the whole process.

For any system to grow, the governance framework must encourage the growth of innovation both within the government and the private sector. Even though ODR is still in its development stages, it has already started to show great potential by reducing the load on overburdened courts and resolving matters more effectively. ODR is the future of dispute resolution. We should accept it rather than oppose it, as it delivers efficiency and is cost-effective. Overall, ODR has the potential to transform the Indian judicial system by being a more efficient and accessible system of dispute resolution. With the right support, ODR can become an integral part of India’s legal ecosystem and contribute to the country’s growth and development.