Bahrain Electronic Commerce Law

Law
Number ( ) for the Year
Regarding
Electronic Commerce

We, Hamad bin Isa Al Khalifa, King of the Kingdom of Bahrain, Having reviewed the Constitution, And the Civil and Commercial Procedure Law issued by Law Decree No. (12) of 1971, and its amendments; And the Law Decree No. (14) of 1971 regarding Notarization, and its amendments; And the Penal Code issued by Law Decree No. (15) of 1976, and its amendments; And the Commercial Law issued by Law Decree No. (7) of 1987, and its amendments; And the Evidence Law in Civil and Commercial Matters issued by Law Decree No. (14) of 1996, and its amendments; And the Law Decree No. (4) of 2001 regarding the Prohibition and Combating of Money Laundering, and its amendments; And the Civil Law issued by Law Decree No. (19) of 2001; And the Companies Law issued by Law Decree No. (21) of 2001, and its amendments; And the Law Decree No. (42) of 2002 issuing the Law of the Judicial Authority; And the Law Decree No. (46) of 2002 issuing the Criminal Procedure Law, and its amendments; And the Law No. (64) of 2006 regarding the Central Bank of Bahrain and Financial Institutions, and its amendments; And Law No. (18) of 2012 regarding Trade Names; And Law No. (35) of 2012 regarding Consumer Protection; And Law No. (6) of 2014 Approving the Law (System) of Trademarks for the Gulf Cooperation Council Countries; And Law No. 62 of 2014 Regarding the Combating of Commercial Fraud; And the Law Decree No. (27) of 2015 Regarding the Commercial Register; And Law No. (30) of 2018 Issuing the Personal Data Protection Law; And Law No. (31) of 2018 Issuing the Competition Protection Law; And the Law Decree No. (54) of 2018 Issuing the Law of Letters and Electronic Transactions;

And after the approval of the Council of Ministers; The Shura Council and the Council of Representatives have approved the following text of the Law, which we have ratified and issued;

Chapter One
General Provisions
Article (1)
Definitions
In the application of the provisions of this Law, the following words and expressions shall have the meanings indicated alongside each of them, unless the context requires otherwise:
Kingdom: The Kingdom of Bahrain.
Law: The Electronic Commerce Law.
Executive Regulations: The regulation or regulations to be issued to implement the provisions of this Law.
The Ministry: The Ministry concerned with trade affairs.
The Competent Minister: The Minister concerned with trade affairs.
The Competent Administration: The Administration concerned with electronic commerce within the Ministry.
Electronic Commerce: Commercial transactions conducted via communications and electronic channels, carried out through the electronic store via electronic payment gateways, regardless of the electronic means, programs, applications, or media used to complete these transactions. Electronic Store: Any electronic platform through which a merchant can display, trade, or sell a good, or display, trade, or sell a service. Electronic Commerce Contract: The agreement of two or more wills to produce a legal effect consisting of a commercial transaction, through electronic means, without the physical presence of the parties during contracting. Electronic Payment: The process of paying the price of a good or service to fulfill it electronically. Consumer: Anyone who obtains a good or service to satisfy their need or the need of another.

Article (2)
Scope of Application of the Law and Exceptions The provisions of this Law shall apply to anyone practicing electronic commerce in the Kingdom or offering or providing their goods or services within it, through their electronic store. The following are excluded from the provisions of this Law:

1. Transactions related to personal status.

2. Transactions and acts that the law requires to be evidenced in official documents to be recognized.

3. Any document that the law requires to be authenticated before a notary public.

4. Negotiable instruments.

5. Any other transactions or documents exempted by a special legal provision.
   The Competent Minister - by a decision issued after the approval of the Council of Ministers - may add any other transactions or documents to the Executive Regulations in implementation of the aforementioned items, or delete or amend them. Electronic trading in any good or service that violates the laws and regulations in force in the Kingdom is prohibited.

Chapter Two
Electronic Commerce Transactions
Article (3)
Place of Business of the Electronic Store

1. For the purposes of applying this Law, the place of business of the electronic store is presumed to be the place designated by it, unless proven otherwise.
2. If the electronic store has not designated its place of business and has more than one place of business, the place of business for the purposes of this Law shall be the place most closely connected to the contract, taking into account the circumstances that the parties were aware of or could have foreseen at any time before or at the time of concluding the contract.
3. If a natural person has no place of business, their habitual residence shall be taken.
4. A place shall not be considered a place of business merely because it:
   a. Houses the equipment and technology supporting the information system used by the party in the context of contract formation; b. Or allows other parties to access the information system in question.
5. The mere use by a party of a domain name or email address associated with a particular country does not create a presumption that their place of business is located in that country.

Article (4)
Evidentiary Value of Electronic Commerce Transactions Subject to the provisions of the Law of Letters and Electronic Transactions, the following shall be observed:

1. In the context of contract formation, and unless the parties agree otherwise, the expression of offer and acceptance may be made wholly or partially by electronic communication. In this case, the contracting must include the date of contracting, its duration, the obligations of the parties, the conditions for its termination or renewal, and any other essential data issued by a decision of the Competent Minister.
2. A contract shall not lose its validity or enforceability merely because it is made wholly or partially through one or more electronic messages.
3. If the law requires a signature on a document, or attaches a legal effect to the absence of a signature, then in respect of transactions governed by this Law, an electronic signature on it satisfies the requirements of this Law to complete these transactions.
4. The legal effect of an electronic signature shall not be denied regarding its validity and enforceability merely because it is in electronic form, wholly or partially.

Article (5)
Information Required in the Electronic Store
The electronic store must display the following:

1. A disclaimer notice that the buyer has reached the age of eighteen.
2. A requirement that the buyer possesses their own electronic payment card when making payment by electronic card.
3. A requirement that the buyer provides the correct address necessary to complete the transaction.
4. A requirement that the buyer provides the personal information necessary to complete the payment process, as well as all information that may be required by the decision issued by the Competent Minister in this regard.
   The electronic store must also provide a complete protection system for all consumer data, including all steps of the electronic payment process and the data contained therein.

Article (6)
Conditions Required in a Data Message
Without prejudice to the provisions of the Letters and Electronic Transactions, when the law requires information to be in writing, a data message satisfies this condition if the following are available:

1. The parties to the transaction can access this information in a manner that allows for later retrieval.

2. The parties to the transaction can save this information.

3. A copy of all data and information related to the transaction is sent to the parties to the transaction to preserve their rights.

4. All data of the parties to the transaction is saved in accordance with privacy considerations.
   Exceptions to the provisions of the preceding paragraph apply to cases where the text stipulates an exception in a special law, or those for which a decision is issued by the Competent Minister.

Article (7)
Financial Institutions Engaging in Electronic Payment Activities Every financial institution engaging in electronic payment activities within the Kingdom in accordance with the provisions of this Law and its Executive Regulations and decisions issued pursuant thereto must comply with the provisions of the Central Bank of Bahrain Law No. (64) of 2006 and its amendments, and the Law Decree No. (4) of 2001 regarding the Prohibition and Combating of Money Laundering and its amendments, and take measures sufficient to provide secure services to customers and maintain banking secrecy in this regard. The Central Bank of Bahrain shall issue instructions to the banking and financial institutions under its supervision to adopt and regulate electronic payment methods for funds.

Chapter Three
Commercial Register
Article (8)
Obligation to Register in the Commercial Register Subject to the provisions of the Commercial Register Law issued by Law Decree No. (27) of 2015 and its Executive Regulations, anyone wishing to practice electronic commerce must proceed to register their name, electronic store, and type of activity in the Commercial Register in accordance with the provisions of the Commercial Register Law, in the manner and controls specified by the Executive Regulations of this Law. The Executive Regulations shall clarify the commercial activities that may not be the subject of electronic commerce, as an exception to the general rule, and shall determine any other requirements necessary for practicing electronic commerce.

Article (9)
Submission of Registration Application to the Commercial Register Registration in the Commercial Register shall be accompanied by the documents specified by the Executive Regulations of this Law, and the Registration Administration shall rule on the application.

Article (10)
Obligation to Disclose the Trade Name
The electronic store must clearly disclose the full trade name, as well as the trademark, if any.

Chapter Four
Consumer Protection
Article (11)
Consumer Protection Guarantees
Without prejudice to the provisions of Law No. (35) of 2012 Regarding Consumer Protection, the electronic store is obliged to provide the consumer with a clear and understandable statement of the terms and conditions of the contract, including the following:

1. The goods to be purchased and the quantity available for sale.
2. The technical steps to be followed to conclude the contract.
3. Data related to the service provider.
4. Description of the essential characteristics of the contracted services or goods.
5. The price of the services or goods, including delivery fees to the buyer or any additional fees or amounts.
6. Arrangements related to payment, delivery, and execution.
7. The duration of the offer and price validity.
8. Warranty data - if any -.
9. Return and exchange policies.
10. That the transaction is completed entirely - only - after the expiration of the return and exchange period specified by the electronic store, which was agreed upon by the parties to the transaction.
11. Whether the subject of the contract will be stored or retained by the service or goods provider, and the possibility of accessing, storing, copying, and retaining it by the consumer and the methods thereof.
12. Any other data stipulated by the Executive Regulations of this Law or decisions issued by the Competent Minister in implementation thereof.

Article (12)
Obligation to Provide an Invoice to the Consumer

The electronic store must provide an invoice to the consumer showing the total cost of purchasing each good or service, including delivery, taxes, and fees, if any, and all other fees and costs, the delivery date, and the last date for returning goods and products if necessary.

Article (13)
Data Privacy

1. No electronic store or any entity may obtain personal or banking data belonging to a client except with the written consent of this client, and they may not retain it except for the period required by the nature of the transaction, nor may they deal in this data for purposes other than those authorized or permitted, for consideration or without consideration, with any other entity unless required or authorized by relevant laws and regulations.
2. The electronic store or such entity shall be responsible for any records containing the client's personal information or any records of the client's electronic communications that are in their custody or under their control, or with their agents, representatives, or employees, and they must take the necessary steps to ensure the security of the client's personal information and related records, protected by a security method appropriate to their importance.

Article (14)
Delay in Contract Execution

1. The electronic store is obliged, at the beginning of contracting, to notify the consumer of any fundamental difficulties it faces that will affect the execution of the contract within the period agreed upon at the time of contracting.
2. The electronic store and the consumer shall agree on the delivery period or contract execution period, and the consumer may cancel the contract if there is a delay in delivery or contract execution for more than fifteen days from the delivery date agreed upon at the time of contracting, and the consumer shall have the right to recover any amounts paid by them under the contract in consideration for the goods or services or other obligations of the contract affected by this delay.

Chapter Five
Supervision
Article (15)
Supervision by the Ministry

The Ministry is competent to supervise the electronic commerce sector, and the Competent Minister shall issue the necessary decisions to regulate the sector, enhancing the role of electronic commerce and working to protect the consumer, with the following powers in particular:

1. Designating the Competent Administration within the Ministry responsible for supervising electronic stores and receiving and examining complaints in this regard.
2. Setting the conditions regulating electronic communications of a commercial nature, in coordination with relevant authorities.
3. Setting the rules regulating electronic auctions.
4. Setting the rules regulating offers and competitions of a promotional nature conducted electronically.
5. Setting the rules regulating electronic platforms that act as intermediaries between the seller and the consumer.
6. Reporting to the competent authorities any act that constitutes a crime resulting from or harmful to electronic commerce.

Article (16)
Judicial Police Authority
Employees of the Ministry who are designated by a decision from the Minister concerned with Justice in agreement with the Competent Minister shall have the status of judicial police officers in proving violations of the provisions of this Law and the regulations issued in implementation thereof.

Article (17)
Blocking of the Electronic Store
Without prejudice to the criminal or civil liability that may result from violating the provisions of this Law, the Minister or their delegate may, based on the recommendation of the Competent Administration, issue a warning to anyone violating the provisions of the Law, the Executive Regulations, and decisions issued in implementation thereof, to rectify the violation within a suitable period specified for that purpose. If the violator does not comply, the Public Prosecution may take action if the violation constitutes a criminal offense. The Minister or their delegate may issue a decision to block the violating electronic store in coordination with the authority responsible for blocking websites, and in case this is not possible, the Ministry shall identify the violating electronic stores on the Ministry's electronic website so that the violation is removed, with access to this information available to the public through the Ministry's electronic website.

The interested party shall be notified of the Minister's decision by the notification methods specified by the Executive Regulations within three working days from the date of its issuance.

Chapter Six
Measures and Penalties
Article (18)
Measures That May Be Taken in Case of Violation

1. The Competent Administration may, upon proof of the violation, order the violator - by a reasoned decision notified electronically or by registered mail with acknowledgment of receipt - to stop the violation and remove its causes and effects immediately or within a period specified by the Administration. In case of non-compliance within this period, the Competent Administration may issue a sufficient reasoned decision on one of the following measures:
   a. Suspension of the registration of the electronic store in the Commercial Register for a period not exceeding three months, along with blocking the electronic store's website for the same period of registration suspension. b. Imposition of an administrative fine calculated on a daily basis to compel the violator to stop the violation and remove its causes or effects, not exceeding one thousand Bahraini Dinars per day for the first violation, and not exceeding two thousand Bahraini Dinars per day for any other violation committed within three years from the date of issuing a decision against them for the previous violation, and in all cases, the total fine shall not exceed twenty thousand Bahraini Dinars.
   c. Imposition of a total administrative fine not exceeding twenty thousand Bahraini Dinars.
   d. Cancellation of the registration of the electronic store in the Commercial Register, and closing the website from the internet if the violation relates to this registration, or blocking the website if closing is not possible.

2. In the cases stipulated in items (b) and (c) of this Article, the determination of the fine must take into account the seriousness of the violation, the obstinacy shown by the violator, the benefits gained, and the damage caused to others as a result. The collection of the fine shall be carried out by the methods prescribed for collecting amounts due to the State.

3. The Ministry may publish a statement of the violation or violations proven to have been committed by the violator, in the manner and format specified by the decision, commensurate with the seriousness of the violation, provided that publication occurs only after thirty days have passed from the Ministry's decision confirming the violation without appeal, or the issuance of a final judgment confirming the violation, as applicable.

4. If the investigation conducted by the Ministry reveals the existence of a criminal offense, the files may be referred to the Public Prosecution.

Article (19)
Cases for Cancellation of Registration, Closing, or Blocking of the Electronic Store The Competent Administration may cancel the registration, close the electronic store, or block it, as applicable, in the following cases:

1. Based on a final judgment or decision issued by a judicial authority.
2. Violation of the provisions of this Law or decisions issued in implementation thereof, and failure to comply with removing the violation within the period specified by the Ministry.
3. Loss of one of the conditions for registration.
   The Competent Administration must notify the person whose registration is to be cancelled under item (2) or (3) of this Article within a maximum of five working days, in accordance with the procedures and controls specified by the Executive Regulations.

Article (20)
Establishment of a List of Violators
The Competent Administration may establish a list, in which the names of violators of this Law and its Executive Regulations and decisions organizing it, and the laws and regulations of the relevant competent authorities are included, and in which the electronic stores and websites used in violation of the provisions of this Law and the Executive Regulations and decisions organizing electronic commerce are included, to require them to meet the requirements sufficient to prevent the recurrence of the violation, in the manner specified by the Executive Regulations.

Article (21)
Regulation of Procedures for Cancellation, Erasure, and Reinstatement of Registration The Executive Regulations shall regulate the procedures and controls for the cancellation and erasure of registration from the Commercial Register of the electronic store, and the procedures and requirements for reinstating the registration.

Article (22)
Penalties

Without prejudice to any harsher penalty stipulated in any other law, imprisonment for a period not exceeding one year and a fine not less than one thousand Dinars and not exceeding five thousand Dinars, or one of these two penalties, shall be imposed on anyone who:

1. Intentionally provides incorrect data to be recorded in the Commercial Register of the electronic store, whether related to registration, renewal, endorsement, or cancellation, and the court shall order the correction of this data in accordance with the conditions and deadlines specified.
2. Establishes or manages an electronic store or engages in electronic commercial activity without obtaining a license for that purpose.
   The Minister or their delegate may, before referring the violator to criminal trial, decide on settlement regarding these violations, as well as the violations stipulated in item (2) of Article (20) of this Law after paying the settlement amounts issued by a decision of the Minister, after presentation to the Council of Ministers.
3. Intentionally mentions incorrect data on their electronic store.
4. Violates the provisions of Article (7) of this Law or the Central Bank of Bahrain Law or the instructions issued by it regarding the regulation of electronic payment methods.
5. By virtue of any powers granted to them under this Law, accesses information in records, documents, or electronic correspondence, and discloses any of this information. Exceptions apply to cases of authorization of information for the purposes of implementing this Law in accordance with the controls specified by the Executive Regulations, or in implementation of any judicial procedures.
6. Uses a fake or unauthorized electronic identity in concluding any electronic transactions.

Article (23)
Liability of Legal Persons
Imprisonment or a fine not less than five thousand Dinars and not exceeding twenty thousand Dinars, or one of these two penalties, shall be imposed on the person responsible for the actual management of a legal person if, with their consent, connivance, or refusal, a violation of any provision of this Law occurs. An employee of the legal person shall be subject to the same penalty stipulated in the preceding paragraph of this Article if it is proven that this violation resulted from their action, negligence, consent, connivance, or refusal. In the event of a conviction under any of the preceding two paragraphs of this Article, the legal person to whom the convicted person belongs shall be fined an amount equal to double the fine imposed on any of them.

Chapter Seven
General and Transitional Provisions
Article (24)
Regularization of Status
Every natural or legal person who has an electronic store at the time of the implementation of this Law must proceed to register their store in the Commercial Register and fulfill all other requirements related to the activity they practice through their electronic store, within a maximum period of six months from the date of entry into force of the provisions of this Law. If the period mentioned in the preceding paragraph elapses without any of the addressees of the registration regularizing their status in accordance with the preceding paragraph, the Ministry shall block the violating electronic store in accordance with the text of Articles (18, 20) of this Law.

Article (25)
Notices and Legally Recognized Knowledge
Notices under the provisions of this Law shall be by electronic means, primarily by email, and may be by registered mail as an exception in cases stipulated by the Law or the Regulations.

Article (26)
Administrative Appeal
The interested party - or their legal representative - may appeal to the Competent Minister against any decision issued based on the provisions of this Law or its Executive Regulations, within thirty days from the date of notification of the decision or from the date the deadline for issuing the decision expired. The Minister shall rule on the appeal and notify the interested party or their legal representative - by the notification methods prescribed in this Law - of the result of the ruling within thirty days from the date of submission. The expiration of this period without a response shall be considered a tacit decision rejecting the appeal.

Article (27)
Application of Other Laws
The provisions of the Laws of Letters and Electronic Transactions, Personal Data Protection, Consumer Protection, and Commercial Register shall apply to everything not stipulated in this Law and are considered complementary to the provisions of this Law to the extent that they do not conflict with its provisions.

Article (28)
Decisions

The Minister shall issue the Executive Regulations and decisions necessary to implement and apply the provisions of this Law after its publication in the Official Gazette, and they shall be enforced after its entry into force.

Article (29)
Entry into Force of the Law's Provisions
The Ministers - each within their respective jurisdiction - shall implement the provisions of this Law, and its provisions shall be enforced after six months have passed from the day following the date of its publication in the Official Gazette.