Free checklists and diagnostics for mobile applications, online stores and other e-commerce entities in Kazakhstan

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Free checklists and diagnostics for mobile applications, online stores and other e-commerce entities in Kazakhstan

Free checklists and diagnostics for mobile applications, online stores and other e-commerce entities in Kazakhstan

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April 6, 2020

Currently, many countries have imposed a state of emergency and quarantine as a result of the global Coronavirus pandemic; Kazakhstan has also established a state of emergency and a strict quarantine in several cities.

Most businesses suffer severely. However, there are several business areas that have been given a strong impetus, mainly those related to electronic commerce. For instance, the sale of goods, goods delivery services via online-stores, mobile applications, the provision of educational and sport services carried out remotely via the Internet and mobile applications, as well as advertising through the Internet platforms, Internet platforms for sale and purchase goods and services.

This review contains a list of requirements that are provided for in Kazakh legislation for various e-commerce entities. The list of basic requirements is set forth in the form of a checklist that the company can use to “test” its infrastructure, operations, as well as documents (agreements, letters of consent, etc.) for compliance with Kazakh legislation.

To begin with, the legislation distinguishes the following types of e-commerce entrepreneurs:

entrepreneurs who sell goods and/or services via information and communication technologies;
electronic trading platforms;¹
information and advertising platforms.²

The peculiarity of Kazakhstan regulation is that, currently, there is no a single legal act that would contain provisions applicable to e-commerce. Therefore, the common civil standards, consumer protection laws, and internal trade rules, as well as tax and payment laws are applicable.

We have prepared a checklist of requirements applicable to all e-commerce entities, as well as a checklist applicable to certain types of e-commerce. Therefore, an entrepreneur will be able to check the platform, online store, mobile application he uses for compliance with Kazakh legislation.

We also note that our lawyers are ready to conduct free diagnostics of your mobile application, internet platform, and online store. Detailed information on free diagnostics and its terms is given below.

I. Checklist for all e-commerce entities (regardless of the type and field of activities)

Question	Answer (Yes or No)	Notes
Is there any information about the person providing services, performing works, and offering goods for sale?
Is a customer provided with information about the goods, work, services, its cost, payment procedure, terms and cost of delivery, warranty period, before concluding the contract of sale/provision of services?
Is a sale/services agreement or an offer posted indicating the essential terms of the agreement?
Is there a procedure for concluding a contract, and have you informed the consumer of this procedure?
Is there a technical possibility for a consumer to save the offer or contract and reproduce it?
Is the contract of sale/provision of services or offer available in Russian and Kazakh?
Are the prices for goods and/or services stated in the national currency (tenge)?
Do the prices of goods and/or services include all expenses incurred by the buyer, including commissions of payment systems, etc. (alternatively, prices may be indicated separately)?
Is there a form of consent to collect and process the personal data?
Is a consent obtained to transfer personal data to third parties, including outside the territory of Kazakhstan?
Is a consent obtained to process personal data by way of apparent consent of the data subject?
Are cash registers used for selling goods and/or services?
Is an invoice (tax-invoice) issued (in case an entrepreneur is required to issue an invoice)?

II. Checklist for mobile applications/on-line stores for selling goods

Question	Answer (Yes or No)	Notes
Is a customer provided with the information about the product, namely the name of the product, the mark of conformity, cost, terms of purchase of the product, information of customer interest on the product (for example, energy value, ingredients, the presence of genetically modified components, the manufacturer’s trademark, country of origin, availability or absence of a warranty period, date and place of manufacture, storage period of a product, indication of the storage conditions of a product, weight, volume, quantity and/or completeness of a product, and the effective and safe use of the product), name and address of the seller/manufacturer/producer, the location of the individual entrepreneur or legal entity authorized by the seller/manufacturer to accept claims from customers and providing repair and maintenance of the goods?
Is there a return and exchange of goods (infrastructure and procedure)? Is a customer informed about the procedure for return and exchange of goods?
Is the information on goods provided in at least Kazakh or Russian?
Is a phone contact number registered at a Kazakhstan mobile operator provided?

III. Checklist for mobile applications/on-line stores for providing services

Question	Answer (Yes or No)	Notes
Is information provided on the number and validity of license, work permit, and the authorities who provided the permit in both the Kazakh and Russian languages (in case the provider’s activity is subject to licensing or requires a permit)?

IV. Checklist for electronic trading platforms

Question	Answer (Yes or No)	Notes
Does the platform have an agreement on the placement of electronic messages and the provision of search services for its clientele (entrepreneurs)?
Does the platform have internal requirements for e-commerce participants?
Is there a possibility of a wire transfer for goods (work, services) using bank payment systems?
Is there an organization or coordination of the delivery of goods (work, services)?
Is reciprocal payment between the buyer and seller ensured, including when returning goods (work, services)?
Is it possible to complete a contract of sale, a contract for the provision of services by exchanging electronic documents with an electronic digital signature or electronic messages?
Is there a procedure for resolving disputes arising between the buyer and seller, in accordance with the law on the protection of consumer rights?
Are there procedures preventing incorrect actions by sellers and (or) a provision preventing the seller giving false information to the buyer, and procedures to prevent illegal trade?
Are there software and hardware measures ensuring the operation of the electronic trading platform through secure communication channels, safe document flow, and non-disclosure of confidential information?
Does the platform control/monitor the advertising of prohibited goods on it?

V. Checklist for information and advertising platforms

Question	Answer (Yes or No)	Notes
Does the platform allow to place the characteristics of goods (work, services), its cost by filling out an application by the seller, provider of services, works?
Does the platform assign an ID to the advertisement?
Does the seller’s platform require a subscriber number registered with a Kazakhstan mobile operator?
Are sellers authenticated by the platform?
Does the platform ensure the possibility of making complaints about a seller and/or his goods/work/services?
Does the platform provide the technical option to send a message to a seller regarding the characteristics of his goods/work/services, or to evaluate or comment on/post feedback on the seller and/or his goods/work/services?

Please note that the list of the requirements is not exhaustive. We also note that, in practice, an e-commerce business may be non-standard combining several types of platforms, and the regulation of such a business is ambiguous. In such cases, we would recommend a separate legal review.

Please kindly note that options for fulfilling one or another above requirement is possible. For example, this concerns the requirements related to personal data, indicating information about goods in mobile applications, or on the online-store.

We are ready to conduct free diagnostics of a limited number of e-commerce business entities. We will check the mobile application, the platform, as well as the rules, contracts and consent forms for compliance with Kazakh legislation. At our discretion, we will give recommendations in writing or orally. Depending on our workload, we may stop accepting applications at any time. We will do free diagnostic of one e-commerce business for one entrepreneur. Implementation of recommendations/elimination of non-compliance with the legislation is not included in the free diagnostic.

Should you have further questions please do not hesitate to contact us, and we will be happy to be helpful to you and your business.

Please send the applications for free diagnostic to Galina Pogrebnaya at the electronic address: galina.pogrebnaya@dentons.com.

An electronic trading platform is an intermediary internet resource that allows the seller and the buyer to meet; such a platform ensures the conclusion of an agreement between the buyer and the seller.↩
An information and advertising platform is an internet resource containing advertising information about sellers, as well as goods, works, and services with a purpose of organizing their sale.↩