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On November 2, 2019, two major laws Law on Electronic Commerce and Law on Consumer Protection are enacted. This will change business landscape in the near future. This article focuses on Law on Electronic Commerce (or E-Commerce Law), which will come into force in May 2020. The business community have six months to appreciate the new law.
Scope
This law shall apply to all activities, documents and civil and commercial transactions that are made via electronic system except for the activities, documents and transactions relating to: 1.Formation or enforcement of Power of Attorney; 2.Formation or execution of a testament, codicil or other matters relating to succession; 3. Any contract for sale, transfer or disposition of rights to immovable property or any interests in such property; 4. Transfer of immovable property or any interests relating to the immovable property.
Legal recognition of electronic communications
No one may refuse to recognize the validity, legal effect, admissibility or enforceability of an electronic communication solely on grounds that it is formed in electronic form or is in an electronic communication.
If Electronic communications meet conditions stated in the law, they may meet several requirements (writing, signature, originality) by previous law.
Timing
Information in an electronic communication is deemed dispatched when:
The time of receipt of an information is the time when the information becomes capable of being retrieved by the addressee at the electronic address designated by the addressee.
Data protection
Any person that holds personal information in electronic form shall use all means to ensure that the information is protected by such security safeguards as it is reasonable in every circumstances to avoid the loss, access, use, modification, leak or disclosure of those information, except with the permission of the owner of the information or any other party authorized by law.
Any person shall not interfere in the electronic system, access, retrieve, copy, extract, leak, delete or modify data, which is under the retention of any other person in bad-faith or without permission.
Penalties
The law list downs offense as followed:
| Offense | Penalties |
| Offence for Identity Theft | an imprisonment from 6 (six) months to 3 (three) years and a fine from 1,000,000 (one million) Riel to 6,000,000 (six million) Riel |
| Offence for Failure to Report of an Information or a Fact | an imprisonment from 1 (one) month to 1 (one) year and a fine from 100,000 (one hundred thousand) Riel to 2,000,000 (two million) Riel for the intermediary |
| Provision of False Information | an imprisonment from 1 (one) month to 1 (one) year and a fine from 100,000 (one hundred thousand) Riel to 2,000,000 (two million) Riel |
| Executing of an Unauthorized Transaction | cease business activities or business transaction and be subjected to a monetary fine not exceeding 10,000,000 (ten million) Riel |
| Offence for Failure to Comply with the Provision Regarding Minimum Information in Electronic Commerce | Where the written warning was once given, but the same offence has been committed, the license or the authorization of the electronic commerce provider shall be suspended or revoked. |
| Offence for Sending an Unsolicited Business Communication | Where the written warning was once given, but the same offence has been committed, the licensed or authorized of an intermediary or the electronic commerce service provider shall be suspended or revoked or disable the media or closed down the electronic medium of the originator. |
| Offence for Electronic System Forgery and Malicious Code | an imprisonment from 6 (six) months to 3 (three) years and a fine from 1,000,000 (one million) Riel to 6,000,000 (six million) Riel |
| Offence for Failure to Comply with Data Protection Obligations | an imprisonment from 1 (one) year to 2 (two) years and a fine from 2,000,000 (two million) Riel to 4,000,000 (four million) Riel for those who store information in an electronic form for a personal purpose |
| Offence for Violation of Authenticity Issuance | an imprisonment from 1 (one) month to 1 (one) year and a fine from 100,000 (one hundred thousand) Riel to 2,000,000 (two million) Riel |
| Offence for Coding Violation | an imprisonment from 1 (one) year to 3 (three) years and a fine from 2,000,000 (two million) Riel to 6,000,000 (six million) Riel |
| Offence for an Electronic Payment Transaction | an imprisonment from 1 (one) year to 5 (five) years and a fine from 1,000,000 (one million) Riel to 10,000,000 (ten million) Riel |
| Offence for Electronic Payment Instrument Forgery | an imprisonment from 1 (one) year to 3 (three) years and a fine from 2,000,000 (two million) Riel to 6,000,000 (six million) Riel |
Advance Grand Formula Co., Ltd is licensed audit firm from Accounting and Auditing Regulator (ACAR Decision N0. 014), member audit firm of Kampuchea Institute of Certified Public Accountants and Auditors (license number C-00085) and tax agent from General Department of Taxation (license number TA202204002).
This Publication is intended for general guidance only and should not form the basic of specific decisions.
Should you need any further information or support, please contact us at: accounting@advancegroupkh.com (accounting), audit@advancegroupkh.com (audit), tax@advancegroupkh.com (tax) and number and telegram 085 36 8888 and 070 399 888.
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