DISCLAIMER

Dear reader(s)

All the stories posted here are author's personal view and does not reflect anybody's or represent any institutions or organization to which the author is associated unless otherwise mentioned or referred or sources cited after the article. Therefore, any errors are also of the author. Any post which may be directly or indirectly related to any institutions where blogger may be affiliated does not in anyway represent these institutions. Readers may use the information for any educational or research purpose at their own risks on accuracy and authenticity of the information provided herein. The photo(s) from the author's private collection may not be reproduced in any form, electronic or otherwise without prior permission.

The information given here are updated and authenticated to the extent possible and to the best of the knowledge of the blogger and not otherwise.

Anyone wishing to use all or part of the posts published on this blog may kindly obtain permission from the author by emailing at sonamphuentsho111@gmail.com.

NOTE: The blogger is not responsible for any damages caused for whatever reason by using the information posted on this blog unless provided to the user with written permission from the Author.


Monday 13 April 2020

The e-commerce regulation in Bhutan – ambiguous and unenforceable


E-commerce has “emerged as an important tool to facilitate the conduct of business for consumers and businesses alike” across the globe with an estimated “transaction of $3.535 trillion by 2019” and Bhutan is no exception. E-commerce is generally conducted by “Click-Wrap” or “Click-Through” or “Web-Wrap”. These are “electronic contracts that require the user to scroll through terms and conditions and to expressly confirm the user’s agreement to the terms and conditions by taking some action” such as “I Accept” or “I Agree.”

In Bhutan, e-commerce plays a crucial role in situations like Covid-19 that will help ensure reliable delivery of essential goods without having to physically go to the groceries.  E-commerce will help reach Bhutan’s local products to the international market and global products to enter Bhutan at a much faster rate through the virtual transaction. As a result, the Ministry of Economic Affairs framed the Guidelines on E-Commerce, 2019.
This Guideline says: “E-commerce as transactions of goods or services through the internet, mobile device or other information networks.”  There is confusion, however.
On one hand, the guideline seems to recognise all legal platform operators, including social media. On the other hand, Section 8.2 requires platform operator to “take necessary disposition measure in accordance with the customs Act and other relevant laws in force” and “report to authorities if found selling restricted or prohibited goods on its platform.”
If the platform includes social media, how do regulatory authorities exercise their authority over these social networking platforms? If the guideline is intended to exclude social media platforms, this guideline may be almost functionless as social media such as Facebook play a major role in e-commerce in Bhutan.
Further, the sections 8.2.2, 8. 2.3, and 8.2.4 mandates that “information on goods and services, platform service agreements, trading rules or links to such information at a conspicuous position on the homepage of its website, for 30 days.”
How does a car seller display this information if that seller uses social media instead of his own business website?
This guideline mandates the protection of personal information of consumers but also relies on other undefined laws, thus making such protection redundant.  Section 16.1 and 16.2 seem to contradict each other. Section 16.1 allows the “Platform operator (seller/service provider) to choose the appropriate system to resolve the consumer complaints,” whereas Section 16.2 states, “In case of disputes, the aggrieved party may approach the office of the consumer protection for grievance redressal.”
Though tax provisions are important in any e-commerce legislation, this guideline remains silent.
Thus, though this guideline must have been framed with the best intentions to ensure the right to business for Bhutanese people by using e-platforms and protecting consumer rights, there seem to exist too many ambiguous provisions. Regulations so become unenforceable.
We must learn from strong e-commerce legislation of EU and United States that are generally regulated through strong enforceable Standard form E-Contracts or Digital Contracts and consumer protection principle reforms.
Sonam Tshering
Lawyer, Thimphu

No comments:

Post a Comment

My Blog

My Blog

Search This Blog