Law on E-Commerce

(National Coat of Arms)

ROYAL CODE

នស/រកម/1119/017

Preah Karuna Preah Bat Samdech Preah Borom Neath NORODOM SIHAMONI,

the faithful and devoted servant of the country, religion, nation and the Khmer people; the protégé of Buddha and Indra; the unifier of all Khmers; and the defender of independence, territorial integrity and peace of Kampuchea; and the happiness, liberty and prosperity of the Khmer people, Preah Chao Krong Kampuchea Thipadei,

Having seen the Constitution of the Kingdom of Cambodia;
Having seen Royal Decree number នស/រកម/0918/925, dated 6 September 2018, on the Appointment of the Royal Government of the Kingdom of Cambodia;
Having seen Royal Code number នស/រកម/0618/012, dated 28 June 2018, promulgating the Law on the Organization and Functioning of the Council of Ministers;
Having seen Royal Code number នស/រកម/0196/16, dated 24 January 1996, promulgating the Law on the Establishment of the Ministry of Commerce;

Having seen the proposal of Samdech Akka Moha Sena Padei Techo HUN SEN, Prime Minister of the Kingdom of Cambodia;

Promulgate

The Law on E-Commerce which was passed by the National Assembly on 8 October 2019 during its 3^rd session of the 6^th legislative term, and whose entire legal form and substance were completely reviewed by the Senate on 18 October 2019 during the extraordinary session of the 4^th legislative term, and the whole content of which is as follows:

LAW

E-COMMERCE

CHAPTER 1

General Provisions

Article 1.- Purposes

This Law is aimed at:

1- Managing e-commerce in the Kingdom of Cambodia and with the international;

2- Establishing legal certainties in commercial and civil transactions in electronic systems;

3- Providing confidence to the public in using electronic communications.

Article 2 .- Objective

This Law has the following objectives:

1- To determine the authenticity, accuracy and reliability of electronic forms;

2- To promote the legal framework and business development in order to safely perform electronic commerce;

3- To prevent and crack down on the act causing damage to data and information systems;

4- To eliminate obstacles that prevent the performance of electronic commerce and which arise out of requirement uncertainty for written letters and signatures;

5- To facilitate the filing of the documents via the electronic system with public institutions and promote effective service provision of the public institutions by using reliable electronic records;

6- To create rules, provisions and standards in connection with authenticity and accuracy of electronic records.

Article 3.- Scope

This Law shall be applicable to all activities, documents and electronic commerce and civil transactions undertaken by the electronic system except for the activities, documents and transactions related to:

Establishment or enforcement of the powers of attorney;
Establishment or execution of the testaments, codicils or other matters in respect of succession;
Any contracts on sale, transfer or relinquishment of immovable properties or other benefits in such properties;

4- Transfer of any immovable property or benefit related to such immovable property;

5- Other exceptions determined by a subdecree.

Article 4.- Definitions

Key terms used in this Law shall be defined as in the glossary stated in the annex hereof.

Chapter 2

Validity of Electronic Communications

Article 5.- Acknowledgment of electronic communication legitimacy

No person can refuse to acknowledge the validity, legal effect, acceptability or enforceability of electronic communication only due to the fact that it is made in the electronic form or in the electronic communication.

Article 6.- Requirements in writing

1. When any provision requires information in writing or records in writing to be given, it is considered that this requirement is fulfilled should such information be made in the electronic form and be accessible and downloadable for later use;

2. When the condition in the provision of paragraph 1 above is taken to implement legal requirements demanding that any person give multiple copies at once about any information or task to another person, the giver may satisfy this condition by merely giving a copy in electronic form.

Article 7.- Requirement for signature

When any provision requires the signature of any person, such requirement shall be considered fulfilled by means of electronic signature if such electronic signature used is made by means:

A. Whereby it is possible to identify the person or reflect the approval of such person for the information or records contained in the electronic communication;

B. Which are reliable according to the characteristics, purposes and circumstances whereby such electronic communication is made or communicated.

2- Although any provision specifies the requirement for signature or only specifies the consequences of not affixing signatures, the provision of paragraph 1 above is also applied.

Article 8.- Requirements for retention of information in an original form

Legitimate conditions for retention of information which is not made in electronic forms may be fulfilled by retention of such information in electronic forms if:

Such electronic form is reliable means to define the completeness of such information, and
Such information is easily accessible for later use.

Article 9.- Defined form

When any provision requires the information to be made in any form, such requirement shall be replaced by information provision in an electronic form if such electronic form meets all of the following conditions:

1. Containing the same or mostly the same information as the form defined;

2. Being accessible, understandable or downloadable for later use, and

3. Enabling the person receiving the information to store such information.

Article 10.- Requirements for saving the records

When any provision requires storage of documents, records or any specific information, such requirement shall be considered fulfilled if such saving fulfills all of the following conditions:

The information contained in the electronic communication can be accessed and available for later use;
The electronic communication is stored in the original form when made, sent or received or in a form that reflects the accuracy of such information, and
The information is stored to enable any person to identify the original source and objective of such electronic communication, date and time of the same is sent or received.

Obligations for retention of documents, records or information in accordance with paragraph 1 exclude any information only for which the message is sent or received.

Article 11.- Requirements for evidence

Neither provision on implementation of the rule on evidence can reject the acceptance of the electronic communication as the evidence only on the basis that:

Such evidence is the electronic communication, or
Such evidence is not in the original form.

Article 12.- Contract formation and contract validity

Proposal, acceptance and contract can be electronically made;
The electronic contract as stated in the provision of paragraph 1 above shall be valid, legally effective and enforceable when the proposal and acceptance are consistent.

Article 13.- Effect between the parties

The originator and addressee of the electronic communication shall not reject the legal effect, validity and enforceability of showing their willingness or statements.

Article 14.- Separate implementation as per the parties’ agreement

1. As per agreement, the parties taking part in creating, sending, receiving, storing or processing electronic communication may implement [activities] differently from the provision as stated in Chapter 2 hereof unless otherwise determined;

2. Notwithstanding the provision as stated in Chapter 2, the parties of any contract or transaction may:

A. Not use electronic records, electronic communication or electronic signatures in any contract or transaction as agreed, or

B. Impose additional requirements related to the form and authenticity of the contract or transaction as agreed.

Chapter 3

Process of Electronic Communication

Article 15.- Time and place of sending and receiving the information in the electronic communication

The information in an electronic communication shall be considered sent when:

Such information has left the information system under the management of the originator or the party sending it on behalf of the originator, or
In case such information is transmitted but has yet left the information system under the management of the originator or of the party sending it on behalf of [the originator], the information shall be considered sent when such information is received at any point in time;

The information in an electronic communication shall be assumed as sent from the place of business of the originator even though such information is sent from whatever place;
The time of receiving information is when such information can be downloaded by the addressee in the electronic address specified in advance by the addressee. Such information is assumed as received at the place of business of the addressee;
Should the electronic address be not given by the addressee, the time of receiving the information is when the addressee is aware of the sending and can download such information through any electronic address and it is assumed as received at the place of business of the addressee;
Should the electronic address be given by the addressee, the information in the electronic communication shall be assumed as received when such information reaches the addressee’s electronic address and shall be considered received at the place of business of the addressee.

Article 16.- Proposal to form contracts

All proposals to enter into contracts via electronic communication, which does not refer to any other specific person, shall be considered as the invitation to propose to form contracts only. Such proposal to enter into contracts shall be considered as the proposal to form the contract should such proposal clearly show his/her willingness that s/he is bound when there is acceptance from the other party.

Article 17.- Use of automated system to form contracts

Contracts formed by interaction between the automated system of a person and any natural person or the automated system of the other person cannot be subject to objection about validity, legal effect or enforceability of such contracts based on the reason that such natural person is absent from examining or personally acting in the automated system or forming contracts.

Article 18.- Error of entering information in the electronic communication

When a person enters the wrong information in the electronic communication with the automated system of the other party and such automated system does not provide an opportunity to such person to correct the wrong information, such person or party on behalf of the person entering the information is entitled to correct or remove such wrong information in case:

Such person informs the other party about the error as early as possible and shall prove that s/he has entered wrong information in the electronic communication, and
Such person does not get any benefit due to entering the wrong information before s/he provides notice to the other party and does not cause damage to the other party’s or any third party’s benefits.

The provision stated in this article is not applicable to the securities sector.

Chapter 4

Safe Electronic Records and Electronic Signatures

Article 19.- Safe electronic records

An electronic record is considered as a safe electronic record only if it is properly conducted in accordance with security procedures, ensuring that such electronic record is not altered from a specifically determined time until verified.

Article 20.- Safe electronic signatures

Electronic signatures are safe only if the following conditions are complied with:

Being bound to only one signatory;
Being able to identify the signatory;
Being created by the use of means under the management of signatory;
Specifying the time and date of signature, and
Specifying the original condition of the electronic messages or records bound by such signature.

The provision of paragraph 1 above does not limit the ability of any person in electronic communication to:

Determine other additional conditions related to reliability of the electronic signatures, and
Prove the unreliability of the electronic signatures.

Article 21.- Assumption in connection with the safe electronic records and signatures

1. Unless proved to the contrary in the process in connection with the safe electronic records, such safe electronic records shall be assumed as the electronic records unaltered from any specific time;

2. Unless proved to the contrary in the process in connection with the safe electronic signature, such safe electronic signature shall be assumed as follows:

Such electronic signature belongs to the relevant person, and
Such electronic signature is affixed by the person, being willing to sign or having approved the electronic records;

3. In case there is no safe electronic record or safe electronic signature, no provision in Chapter 4 can make a prior assumption about the authenticity or accuracy of such electronic record or signature.

Article 22.- Identity theft

No person shall use identity, record, electronic signature, electronic address, password, or particulars of other individuals dishonestly or without authorization in commercial and non-commercial transactions in electronic systems.

Article 23.- Competent institutions governing the security procedures

1. The Ministry of Posts and Telecommunications is the competent institution to govern the security procedures for electronic records and electronic signatures;

2. Governance of security procedures for electronic records and electronic signatures shall be determined by legal norm paper.

Chapter 5

Intermediaries and Electronic-Commerce Service Providers

Article 24.- Responsibilities of the intermediaries and electronic-commerce service providers

The intermediaries and electronic-commerce service providers shall not bear civil or criminal responsibility related to the information contained in the electronic records related to service provision of such intermediaries and electronic-commerce service providers; in case s/he is not the one who sends such record and in case:

Such intermediaries and electronic-commerce service providers are not aware that the information sent leads to the civil or criminal responsibility;
Such intermediaries and electronic-commerce service providers are not aware of the fact or circumstance anticipatable that such information may lead to civil or criminal responsibility, or
Such intermediaries and electronic-commerce service providers are aware afterward of the information or fact or circumstance anticipatable that such information may lead to civil or criminal responsibility and comply with the procedure for illegal information and defamation as stated in Article 25 below.

The intermediaries and electronic commerce service providers are not required to electronically monitor-check any electronic record under their management whether the process of such electronic record may constitute offense or lead to civil responsibilities, unless otherwise defined;
Provisions of this article are not applicable to free the intermediaries and electronic-commerce service providers from:

A. Obligations created by the laws or legal norm paper;

B. Obligations in compliance with regulations or orders of the court or other competent authorities, or

C. Obligations under the contract.

Article 25.- Responsibilities for information or incidents

In case the intermediaries or electronic-commerce service providers are aware that the information in the record may lead to civil or criminal responsibility, such intermediaries or electronic-commerce service providers shall promptly take actions as follows:

Remove information from the information system under the management of the intermediaries and electronic-commerce service providers and stop providing services related to such information;

B. Store the information as evidence and notify the Ministry of Posts and Telecommunications and relevant competent ministries, institutions of the facts and identity of the suspects.

2. In case the intermediaries and electronic-commerce service providers are aware of any incident or situation leading to civil or criminal responsibility, such intermediaries and electronic-commerce service providers shall store the information as the evidence and notify the Ministry of Posts and Telecommunications and relevant competent ministries [and] institutions.

3. When being aware or informed of the information in the electronic records which may lead to civil or criminal responsibility, the Ministry of Posts and Telecommunications or relevant competent ministries [and] institutions may order the intermediaries and electronic-commerce service providers to:

A. Remove the information from the information system under their management;

B. Postpone or stop providing services to that person, or

C. Postpone or stop providing services related to electronic records.

4. The intermediaries and electronic-commerce service providers shall not bear civil responsibility under the contract or outside the contract or defined by the law for implementation in good faith as per the order of the Ministry of Posts and Telecommunications or relevant competent ministries [and] institutions.

5. The person giving notice of illegal acts to the intermediaries or electronic-commerce service providers, knowing that such notice is counterfactual or deceptive shall bear civil or criminal responsibility for such act.

Article 26.- Authorization or license provision

The intermediaries and electronic-commerce service providers shall request the authorizations or licenses from the Ministry of Commerce and the Ministry of Posts and Telecommunications.

2. The Ministry of Commerce provides the authorizations or licenses including:

A. Electronic-commerce operation authorizations for natural persons;

B. Licenses for operation of Electronic-commerce service provision for legal entities;

3. The Ministry of Posts and Telecommunications provides online service certificate;

4. Exception, determination of types of licenses, formalities, and procedures of authorization or license provision shall be defined by a subdecree.

Article 27.- Code of professional ethics and provisions for intermediaries and electronic-commerce service providers

1. The intermediaries and electronic-commerce service providers shall comply with the code of professional ethics and provisions concerning electronic commerce defined by inter-ministerial Prakas between the Ministry of Commerce and the Ministry of Posts and Telecommunications.

2. The code of professional ethics mentioned in the provision of paragraph 1 above shall be defined and prepared by the Ministry of Commerce and the Ministry of Posts and Telecommunications, in cooperation with the relevant ministries, institutions and stakeholders.

Article 28.- Tax obligations, incentives and preference

The intermediaries and electronic-commerce service providers shall be under the common legislation of taxation regime in force and obtain incentives and preference in accordance with the laws and provisions in force.

CHAPTER 6

Consumer Protection

Article 29.- Minimum information in electronic commerce

1. The persons using electronic communication in order to sell goods or services to the consumers shall provide correct, clear and understandable information and shall contain at least the following information:

A. Person’s name or legal corporate name, registered business address and electronic means of contact or phone number;

B. Form of contact which is fast, convenient and effective between the consumer and seller;

C. Terms and conditions and the cost of the goods or services related to the business transaction, especially terms and conditions and payment methods and details related to removal or cancellation of purchase order, stoppage, delivery and replacement of goods and refund, and

D. Certain goods and services which are put up on sale.

2. Information stated in the provision of paragraph 1 above shall be sufficient so that the consumers can make a decision on the business transaction and store it as the information;

3. The provision of this article does not apply to securities and insurance sectors.

Article 30.- Unrequested business communication

Any person, whether having the place of business within or outside the Kingdom of Cambodia, who sends unrequested business communication to the consumers inside or outside the Kingdom of Cambodia via media or intermediaries or telecommunication service providers, shall provide clear and easy options for the consumers to be able to reject such unrequested business communication.

Article 31.- Creation of fake electronic system and malicious code

1. No person shall create electronic systems with the purpose of falsification or causing confusion in order to take advantage or with the purpose of attracting usage or transaction and causing damage to the person who uses it or the third parties;

2. No person shall create, provide, afford possibility for, distribute, or transmit virus codes with ill-intention by electronic means, to the devices or electronic systems of other persons.

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