Online B2C arbitration: The need to widen the applicability of the Brussels i Regulation

Transnational litigation has always constituted a dilemma for consumers. The Brussels i Regulation includes special consumer jurisdiction rules. The rules give the consumer the right to litigate cross-border disputes in the courts of his/her country of domicile if certain requirements are satisfied. However, the consumer cannot enjoy this protection if the dispute relates to online arbitration. The reason is that arbitration is excluded from the scope of applicability of the Brussels i Regulation. Reliance on the rules of the Unfair Contract Terms Directive (1993/13/EEC) will not always help the consumer to avoid transnational litigation relating to online Business-to-Consumer (B2C) arbitration. As a result, the consumer may refrain from referring disputes to online B2C arbitration in order to avoid the risk of being exposed to transnational litigation. This article deliberates on ways to overcome this problem and in particular to amend the scope of applicability of the Brussels i Regulation to include online B2C arbitration.