So, you’re a seller in a big e-commerce website (A.com) who suddenly finds that A.com has retained your earnings because you have allegedly (lawyers love this word!) breached the terms and conditions of the click-wrap agreement that you never bothered reading.
You just got an email saying you can either settle (in other words just go with whatever A.com says) or initiate Arbitration Proceedings. You’re sure Arbitration is as complicated as it sounds, right? Wrong – read on
1) You can represent yourself !
Most lawyers (myself included) would not advise going pro se. However, if you’re feeling confident enough and have a good understanding of the dispute you can represent yourself. I have seen Arbitrators guiding parties in person when required.
2) Arbitration is an informal process i.e. no legal jargon, My Lord.
Arbitration is a completely informal process. Hearings will often seems just like a private meeting. The parties meet the Arbitrator in a private, neutral setting (not in a court room). The Arbitrator is usually a trained lawyer who will hear both sides, look at the evidence produced in support of the claims and then give a decision (the award). The award is binding on the parties and can be enforced in Court.
3) E-commerce Arbitration are usually document based, fast track Arbitrations
Speed and efficiency (in that order) are important to e-commerce companies. usually, the arbitration under their terms and conditions are through fast-track procedure. This means you may never have to see the Arbitrator or the other party in person, unless it is requested by either side. Documents are shared over email and the award is similarly conveyed to the parties. This seems a very attractive feature in the times of Corona virus.
4) They often have a (now illegal) unilateral Arbitrator Appointment clause
Until recently one party could have the power to unilaterally appoint the sole arbitrator. The Supreme Court has held that this is not proper unless the parties agree to it after the dispute has arisen. Most e-commerce sites (like Amazon) still have unilateral appointment clauses which can be challenged in Court. Thus, you can object to an Arbitrator appointed without your consent and should be able to get a new arbitrator appointed by Court.
5) You get a final decision within 12 months or much sooner
The Arbitration and Conciliation Act applicable to Arbitrations in India mandates that all arbitrations have to finish within 1 year from the time both parties have submitted their respective claims (or pleadings) to the Arbitrator. Fast Track Arbitrations usually conclude much faster as it is only documentary and parties don’t have to meet unless required.
I hope that was helpful !
