The government plans to launch a verification trial this spring of a new system for providing legal solutions online to disputes involving small sums such as online shopping orders. The goal is for the system to be operational sometime next year.
The advantage of the new system would be that it could resolve disputes easier and faster than going to court. Petitions and claims would be submitted via computers, smartphones or other such devices, and a neutral third party would use artificial intelligence to present possible solutions.
It is envisioned the system would be used for cases involving damage in the range of tens of thousands of yen, such as when a buyer claims an item is different than what was promised but the seller does not admit any fault. Both parties would have to agree to use the system.
In the trial, a website will be set up to handle civil disputes, including those involving e-commerce such as online shopping, trading of financial products and transactions in the sharing economy, which seeks to utilize an individual's spare resources.
An online shopping industry group and others have been contracted to manage and operate the system. The government will bear some of the costs of operating the system. The trial is to run until the end of fiscal 2020 to discover any problems.
Online dispute resolution (ODR) mechanisms for resolving civil disputes via the internet have become widespread mainly in Europe and the United States. ODR has become an established alternative dispute resolution procedure (see below).
The European Union operates an ODR platform on a dedicated website that can be used in 25 languages. Businesses that sell products online are required to have a link to the platform on their websites so customers can immediately use ODR if a problem occurs.
In Japan, which does not have an ODR framework, many companies respond to problems by email or phone. People tend to avoid using the court system due to the high costs involved, and alternative dispute resolution procedures are basically conducted by exchanging paper documents.
"It is not uncommon for customers who are not at fault to suffer in silence," a government official said. The hope is that a Japanese ODR will become a new mechanism for victims to seek relief.
Alternative dispute resolution procedure
These are used for resolving civil problems through a neutral and fair third-party organization. A law promoting the use of alternative dispute resolution was enacted in 2007, launching a system for the justice minister to certify third-party organizations. These procedures were used to compensate homes damaged when steel poles at a golf driving range in Ichihara, Chiba Prefecture, fell over during Typhoon No. 15 in September 2019.
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