Internal complaint- handling systems of online platforms, commercial law and the board of directors’ duty of care

Abstract

Abstract: Technology causes the emergence of new kinds of disputes and dispute resolution methods. Accordingly, the era of online platform economy has created its own types of disputes and needs its own unique methods to deal with those disputes. Today, the dependence of business users on online platforms implies that the platforms have a large scope to engage in harmful trading practices which may unfairly limit business users’ online activities. The Regulation (EU) 2019/1150 of the European Parliament and of the Council of 20 June 2019 requires online platforms to establish internal complaint-handling systems. Internal complaint handling systems have utmost importance regarding online platforms’ decisions to restrict, suspend or terminate the business user’s accounts. The Regulation provides the business users important procedural safeguards. Internal complaint- handling systems appear as an alternative dispute resolution method and supports the creation of accessible justice regimes. When evaluated in conjunction with the conventional alternative dispute resolution methods, it resembles the negotiation method. This article opines that even in jurisdictions where the Regulation is not applicable, the conventional commercial law principles may still require an internal complaint- handling system’s implementation by the online platforms. The article sets forth how this may emerge by exemplifying the issue through the lens of trader’s duty to act as a prudent businessman under Turkish law and the board of director’s duty of care under US law. It is envisioned that internal complaint-handling systems will play a crucial role in the online platform economy, since the conventional principles of commercial law support and would inherently require its implementation.