Marketplace and Intermediary Service Provider Compliance
Marketplaces and intermediary service providers have faced new obligations since the comprehensive 2022 amendment to the Law on the Regulation of Electronic Commerce. We advise marketplace operators and companies selling on marketplaces on intermediary service provider obligations, relationships with sellers and Ministry of Trade inspections.
What is an intermediary service provider?
An intermediary service provider is a natural or legal person that provides an electronic commerce environment for the economic and commercial activities of others; marketplaces fall within this scope. A company selling in its own name is an electronic commerce service provider. A company that both sells its own products and provides a platform for other sellers is subject to the obligations of both roles.
The 2022 amendment imposed obligations on intermediary service providers such as avoiding unfair practices towards sellers, not using sellers’ data for their own competitive advantage and removing products following intellectual property infringement complaints. For large marketplaces exceeding certain transaction volumes, additional restrictions and an obligation to obtain a licence from the Ministry were introduced.
Scope
- Assessing compliance with intermediary service provider obligations
- Preparing contracts between the marketplace and sellers, and platform rules
- Designing intellectual property infringement complaint processes
- Contract review and dispute support for companies selling on marketplaces
How We Work
- Defining the platform’s business model and roles: service provider, intermediary service provider or both
- Comparing the obligations under the law and regulations with the platform’s processes
- Preparing or revising seller contracts, platform rules and complaint procedures
- Assessing licence and additional obligations according to transaction volume
- Handling the process in Ministry inspections or complaints
Team
Frequently Asked Questions
Is the marketplace liable for a defective product sold on it?
The seller of the product is primarily liable to the consumer. The marketplace's liability is limited to its obligations as an intermediary service provider listed in the law; however, failure to comply with these obligations, for example on displaying seller information and handling complaints, may give rise to separate liability.
How can we have products infringing our trade mark removed from a marketplace?
The right holder can complain to the marketplace with documents showing the alleged infringement and its ownership of the right. The law requires the intermediary service provider to take the product down following such a complaint and inform the seller; the seller may object.
Can a marketplace change the seller contract unilaterally?
Intermediary service providers must avoid unfair and unilateral changes to their contracts with sellers and must notify changes in advance. These rules are stricter for large marketplaces.
Which marketplaces must obtain a licence?
The law requires large intermediary service providers exceeding certain net transaction volume and transaction number thresholds to obtain a licence from the Ministry of Trade. The thresholds are set by regulation and can be updated, so the assessment should be made with the platform's current data.
Would you like to discuss this service? Schedule a meeting with us — the first meeting is free of charge.
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