Digital Trade Authority to Discipline and Develop E-Commerce

The interim government is set to establish a Digital Trade Authority to oversee the expansion of digital commerce, maintain discipline in the sector, resolve trade disputes, and prevent fraud and other crimes.

According to the Ministry of Commerce, the move aims to foster the growth of e-commerce while bringing the sector under a regulatory framework. Once the proposed ordinance is passed, the authority will be formally constituted.

The ordinance includes provisions for strict penalties: selling products online with false information could lead to two years of imprisonment or a fine of up to Tk 1 million, or both. Violations such as selling prohibited products or failing to deliver goods or services on time could result in multiple fines based on product value.

A draft of the ordinance has already been presented to Sheikh Bashir Uddin, advisor to the Ministry of Commerce, and will soon be submitted to the Advisory Council for approval. Once passed, it will be referred to the Committee on Examination of Draft Laws for further review.

Under the new framework, all e-commerce or digital commerce businesses will be required to obtain a license from the authority to operate. Companies will also be issued a Digital Business Identity (DBID). Fraudulent operations, however, could lead to license cancellation.

The authority will function as an autonomous body under the Ministry of Commerce, led by an executive chairman and four members. To ensure accountability and efficiency, an advisory council chaired by the commerce minister, commerce advisor, or state minister for commerce will oversee the body’s operations.

The draft defines “digital commerce” as the buying and selling of goods and services online using digital technologies. Goods and services offered online must be clearly displayed or declared, with transparent pricing and payment options. A “digital commerce entity” refers to any registered individual or organization that sells or offers goods or services online through websites, marketplaces, or other digital platforms.

The ordinance further specifies that issuing digital or gift cards, wallets, or cash vouchers without prior approval will result in fines. Similarly, organizing lotteries on digital platforms will also attract significant penalties.

Notably, in May 2024, a similar draft was approved by the then cabinet, but progress stalled following the fall of the Sheikh Hasina government. The ordinance has now been redrafted under the interim administration.