Law Digest

E-Commerce

The On E-Commerce Act of Ukraine of 3 September 2015, No.675-VIII came into effect on 30 September 2015.

In general, the document “legalized” e-commerce already existing practices. However, for the first time, the Act recognizes an agreement that entered into force electronically.

A number of quite detailed formal requirements to Internet sellers, electronic agreement sande-commerce transactions are introduced.

For an arrangement of parties executed electronically to have the same legal force as an agreement entered into in writing, it should besigned by using: electronic signature or electronic digital signature; electronic signature by one-time identifier or an analogue of a handwritten signature.

The Act provides for the classical way of making an electronic transaction by one party adopting (accepting) an offer from another party to enter into an agreement. An offer may be made by sending a commercial electronic message (e-mail, SMS,etc.) or by placing an offer in the Internet on a web-site.

A party that is willing to make a transaction may accept an offer by sending a relevant electronic message filled in a relevant form on the web-site or perform actions that will be regarded as an acceptance (for example, make a payment, etc.).

Timely payment is an essential condition for an electronic transaction to come into effect.

The Act provides for a possibility to recognize electronic documents as source documents for accounting purposes. A part from the simplification of the accounting records maintenance, the mentioned in novation significantly reduces the risk of challenging electronic transactions by regulatory authorities.

The sales, which are subject to licensing, may also be affected over the Internet. However, in this case, licensing conditions have to be met.

From now on, e-commerce subjects will be able to substantiate their claimsor objections in court by usinge lectronic documents (notices) related to an electronic transaction.

Besides, in the course of a case hearing within civil, economicor administrative legal proceedings, the evidence presented in electronic form or in the form of hard copies of electronic messages, will be considered as written evidence.

The Act also applies to Ukrainian sales of foreign on-line stores.