Regulating Online Dispute Resolution and Artificial Intelligence in Pakistan: Legal Reforms for E-Commerce and Gig Workers Protection

Abstract

As Pakistan undergoes a digital transformation in e-commerce and labor, the absence of a regulatory framework for Online Dispute Resolution (ODR) poses significant challenges to equitable access to justice. This research critically examines the legal vacuum surrounding ODR in Pakistan, particularly in relation to consumer disputes and the rights of gig workers, where informal digital labor lacks institutional protection. Despite global advances in digital dispute mechanisms, Pakistan remains hindered by outdated laws, procedural inflexibility, and institutional fragmentation, rather than a lack of technology or user demand. By adopting a doctrinal research methodology, the study scrutinizes statutory instruments such as the Electronic Transactions Ordinance 2002, the Prevention of Electronic Crimes Act 2016, and provincial consumer protection laws. It also targets international models, including Singapore’s Community Justice and Tribunals System, the EU’s Digital Services Regulation, and India’s ODR Policy Plan 2023. The analysis applies disciplined frameworks of legal pluralism and algorithmic fairness to assess statutory precision, institutional volume, and procedural addition. Findings reveal that Pakistan’s current legal architecture inadequately supports digital dispute resolution, particularly for marginalized users. The study proposes a phased reform strategy encompassing the enactment of a dedicated ODR statute, statutory amendments, platform accountability, gig worker protection and AI transparency. These reforms are positioned not merely as legal necessities but as democratic imperatives for digital justice. The directions include empirical research on user experiences, Islamic legal compatibility and regional legal harmonization. This research contributes to the South Asian discourse on digital justice and offers a policy roadmap for Pakistan’s overdue ODR reform.