ONLINE DISPUTE RESOLUTION AS AN ALTERNATIVE DISPUTE RESOLUTION MECHANISM IN E-COMMERCE DISPUTES IN MALAYSIA

Authors

  • Nur Farahin Afiqah Daud Commerce Department, Politeknik Nilai, Negeri Sembilan
  • Norsalwati Mohd Razalli Politeknik Sultan Idris Shah, Selangor

DOI:

https://doi.org/10.31436/iiumlj.v33i2.1068

Keywords:

Alternative Dispute Resolution, Online Dispute Resolution, E-Commerce

Abstract

The daily volume of transactions conducted through e-commerce is substantial, with numerous customers engaging in buying and selling goods and services. However, disputes often arise in these transactions, and it can be challenging for customers to resolve them at a single physical location. The increasing need for Alternative Dispute Resolution (ADR) has arisen to settle disputes online. ADR enables parties to resolve disputes outside the court system. The importance of Online Dispute Resolution (ODR) is growing daily, owing to the globalisation of e-commerce and the success of ADR. While ADR is a physical process, ODR is an online process that uses Information Technology to resolve disputes. This paper will primarily concentrate on the relevance of ODR and determine its suitability for dispute resolution relating to e-commerce disputes in Malaysia. This article adopts a qualitative doctrinal research methodology which analyses legal textbooks, articles and relevant organisations through legal reasoning and rational deduction. The article concludes that the use of ODR in Malaysia is feasible and can enhance access to justice by making dispute resolution more affordable, efficient, and seamless. The Digital Signature Act 1997, the Electronic Commerce Act 2006, and the Personal Data Protection Act 2010 have laid foundational legal frameworks for electronic transactions, cybersecurity, and consumer protection in the digital sphere.  These legislative steps represent significant progress in integrating Malaysia's dispute resolution in e-commerce transactions particularly. The digital platforms have allowed various Alternative Dispute Resolution systems to use the virtual process by incorporating digital technology and to provide the future use of virtual platforms in the adjudicatory system.

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Published

2025-11-30

How to Cite

Daud, N. F. A., & Mohd Razalli, N. (2025). ONLINE DISPUTE RESOLUTION AS AN ALTERNATIVE DISPUTE RESOLUTION MECHANISM IN E-COMMERCE DISPUTES IN MALAYSIA. IIUM Law Journal, 33(2), 321–354. https://doi.org/10.31436/iiumlj.v33i2.1068

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