Online dispute resolution: Settling data protection disputes in a digital world of customers

In this article online dispute resolution (ODR) and alternative dispute resolution (ADR) are assessed in relation to the protection of personal data. ODR and ADR schemes are mechanisms to settle low-cost e-commerce disputes out-of-court. The purpose of this analysis is to examine the suitability of online dispute resolution as an additional means to the existing mechanisms for data protection enforcement. In this discussion particular attention is given to services offered to users as ‘free’, but which instead process personal data as a condition on access (e.g. social networking sites). The second section examines data protection in the digital age, highlighting the key principles of data protection and the challenges associated with the existing enforcement mechanisms. The third section questions the suitability of online dispute resolution as a solution for data protection enforcement in the European Union. In order to avail of the EU regulated ODR mechanism to resolve data protection issues, data protection disputes must fall under the scope of the Alternative Dispute Resolution Directive and the Online Dispute Resolution Regulation. Following an analysis of the applicability of the framework in this context, the final part of this article focuses on the challenges associated with the application of ODR schemes to the enforcement of online data protection disputes.