DECREE-LAW No. 12/2024 of February 13

GENERAL LEGAL REGIME FOR ELECTRONIC COMMERCE AND ELECTRONIC SIGNATURESDECREE-LAW 

 

Electronic commerce (e-commerce) plays a key role in economic growth and development. It reduces transaction costs for companies, consumers and public administrations, broadens the geographical scope in which products and services can be bought and sold and, through online transactions, significantly increases the variety of products and services available.

Indeed, e-commerce requires an effective and comprehensive legal framework in order to develop in a global, multilateral, interconnected and evolving world.

This law aims to provide Timor-Leste with a legal framework that promotes the development of electronic commercial transactions within the broader framework of the information society, offering significant opportunities for investment and employment, while stimulating economic growth and innovation.

To this end, in drafting this law, the opportunity has been taken to enshrine some underlying issues, outside the scope of commercial transactions, which are considered necessary to ensure the effectiveness of this legislative initiative, namely the provisions governing the validity of contracts concluded electronically, the use of electronic records and the legal status of electronic signatures.

In this sense, the role of assessing and certifying the conformity of electronic signature products used in the provision of electronic signature services is assigned to a certification body. Accordingly, in order to ensure better and greater oversight of these entities by holders and third parties, it was decided to create a system of registration with the accrediting authority, which, although merely declaratory in nature, is compulsory for the certifying entities that issue certificates.

Thus, electronic signatures issued by an accredited certification body have the probative force of a signed private document and can be used as evidence under the general terms of the law.

A supervisory body for e-signature and e-commerce is also established, whose functions are assigned to the Information and Communication Technologies Agency I.P. (TIC TIMOR), including the investigation of administrative offenses, which are foreseen, and the imposition of the respective fines, in the event of infractions.

To this end, a system of penalties has been established for infringements in the field of electronic signatures and commerce, with fines set within very broad frames, so as to be applicable to the various situations involved, and which are dissuasive.

Among other things, this law establishes legal equivalence between online and paper-based transactions, covering transactions in both the public and private sectors.

Likewise, the requirements governing online transactions are established, including the specification of the information to be provided to consumers by e-commerce providers, adopting the principle of technological neutrality with regard to electronic signatures and records.

In addition, this law defines the requirements for the execution and acceptance of electronic contracts and records, and the possibility of using electronic signatures.

It also lays down rules on the use of unsolicited commercial e-mail, commonly known as “spam”, defines and prohibits the use of fraudulent e-mail and provides for a mechanism and jurisdiction for resolving disputes relating to online commercial transactions.

On the other hand, this law establishes the principle of non-discrimination between national and foreign electronic signatures and registrations, recognizes the legitimacy of foreign electronic signatures and registrations in East Timor and, in doing so, aims to facilitate international trade.

As recognized in the National Policy for Information and Communication Technologies (ICT), this law is also intended to facilitate the interaction and involvement of citizens and companies with the Public Administration, both in national and international issues in the field of e-commerce.

It should be noted that this law also aims to encourage the development of paperless cross-border trade, thus supporting greater integration of East Timor into the regional and global economy. In this sense, it is essential that cooperation mechanisms are created with other countries to facilitate and encourage the use of e-commerce.

What's more, this law seeks to reflect the best international practices in this area, moving closer to, among others, the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce, the UNCITRAL Model Law on Electronic Signatures and the UNCITRAL Model Law on Transferable Electronic Records.

Finally, it should be noted that this law is neutral from a technological point of view, on the assumption that technology has the ability to develop continuously and, as such, solutions are devised that involve applying the options set out in it in a flexible way that allows new technologies to be used in a way that is appropriate and consistent with the objectives of facilitating commercial transactions and the fluidity of economic development.

PDF it only has it in Portuguese

Have you found this information useful ?
Please share your feedback below and help us improve our content.