Throw some computer scientists, game theorists and attorneys together to design a dispute resolution system, and you'll come up with a very unique service. Fair Outcomes Inc. is launching the Fair Reputations System on Wednesday. The new service comes at a time when sellers are looking closely at reputation, given the controversial changes to feedback eBay is rolling out this month.

Reading a description of how the Fair Reputation System works in the company press release may require a PhD, or at least a cup of strong coffee. But go straight to the homepage and you'll see a graphical presentation that makes things much clearer.

The system is designed to solve one of eBay sellers' most common problems - negative feedback, though CEO James Ring said it works on any ecommerce marketplace, including classifieds sites. By showing they are willing to go through the process and risk losing the judgment, Ring said sellers can show future shoppers they've attempted to act in a fair manner towards customers.

The system has built-in what eBay's former partner SquareTrade did not: strong incentives for sellers to make fair proposals at the outset of the dispute resolution process, while ridding buyers of any reason for not participating. Indeed, the system seems slanted in favor of the buyer, until one realizes the motivation for sellers to go through the process - to clear their reputation - but only in a manner they themselves deem fair.

The service isn't cheap. It costs $10 - but if the dispute goes into arbitration, there are no additional fees - a bargain if you are familiar with traditional arbitration fees!

Fair Outcomes summaries its service as follows:

Unlike mediation and traditional sealed-bid arrangements, the system's structure gives the initiating party a strong incentive to make a fair proposal at the outset of the process, while depriving the other party of any incentive or excuse for failing to do the same prior to the deadline. The initiation of the system by a seller allows the seller to demonstrate that it provided the buyer with an opportunity to seek and obtain a fair and binding resolution of the underlying problem in a highly efficient and equitable manner, justifying a discount of any negative feedback left by the buyer in calculating the seller's reputation rating. The system eliminates any incentives or opportunities for harassment, posturing or extortion, solving the problems cited by eBay. We are confident that it will be welcomed by fair-minded buyers and sellers alike and, in due course, by eBay and the e-commerce community as a whole.

Unless eBay embraces Fair Outcomes' service, one thing appears to be missing: an easy way for sellers to show customers they've participated in the Fair Reputation System, which is really the whole point. (Last week eBay announced it was doing away with Online Dispute Resolution and Mutual Feedback Withdrawal, http://www.auctionbytes.com/cab/abn/y08/m05/i08/s01.)

With Wednesday's launch, it's likely the company will hear feedback from sellers directly, and James Ring and his colleagues are sure to be listening.

https://www.fairoutcomes.com/run_fr/home.pl