Malta’s current position on online dispute resolution with particular reference to online gaming

Abstract

In the past, merchants and consumers would meet in person to do business, discuss terms and conditions, and assess the trustworthiness of their contracting partners face to face. Deals would be concluded by a handshake, which was enough to ensure that both parties were committed to the deal, as well as adamant to solve any disputes that may arise in the future. However, in today’s digitized society, face-to-face meetings are a rarity, and we e-mail and Skype instead! Most of our transactions are conducted online, thus consumers are increasing shifting into the online world. For consumers, eCommerce offers a plethora of possible connections, expanding the globalized eMarketplace beyond geographic limitations. However, the internet also created disconnections for consumers by enabling some companies to hide from responsibility behind the jurisdictional confusion of the internet. Combining Malta’s pristine reputation as a jurisdiction to be trusted by both players and operators in online gaming, as well as recent transposition of the EU’s Alternative Dispute Resolution Directive, it is clear that the practicality provided by ODR, it being recognised. It is crystal clear that advances in technology have altered consumers’ needs drastically, this may be reflected in Section 1. This Research Project aims at outlining how out-of-court dispute resolution is the way forward for e-commerce, especially (but not exclusively) for online gambling disputes. This conclusion shall be drawn after an analysis of a several ADR/ODR systems including the very recent, Online Dispute Resolution platform set up by the European Commission. A comparative review of different kinds of out-of-court redress, such as assisted negotiation, online mediation and online arbitration, is provided in Section 2 and Section 3 of this Research Project. Foreign jurisdictions’ approach shall also be referred to. After looking into the pros and cons of ODR in Section 4, a way forward for Malta shall be proposed in Annex X. This is meant to serve as a base to better Malta’s envisaged regulatory position on the matter.