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Electronic Commerce

Electronic Commerce Law in El Salvador

For several months, the discussion of the Electronic Commerce Law draft took place and was approved at the beginning of last November. This represents an important step for our country, which was one of the few at the international level that did not have this legal instrument, necessary to regulate the way in which transactions are made in the digital era.

As its name suggests, this regulation creates the regulatory framework for commercial relations, whether contractual or not, conducted by electronic or technological mechanisms between suppliers of goods and services, by electronic means, intermediaries, commercial communications, as well as between users and clients. In other words, it is a law that not only makes the economy dynamic, but also favors and protects consumers.

According to the same text of the law, it is applicable to “any natural or legal person, public or private, established in El Salvador, that carries out by itself or through intermediaries, commercial transactions or exchange of contractual goods or services, through the use of any kind of technology or through interconnected communication networks”.

In the debate and study of the law, representatives of public and private sectors participated, interested and related to the topic, for which we can say that there was a broad discussion and consensus regarding how this new legal framework should be structured. In fact, one of the instruments used for its creation was the electronic commerce model law, adopted by the United Nations Commission on International Trade Law.

Another important element to highlight of this new law, is that it complements the Consumer Protection Law, which also had important e-commerce-oriented reforms.  Definitely, having this legal tool will allow our country to formally attract new investments and more business, the latter not only internally, but globally.

Finally, it is worth mentioning that the law will enter into force after one year from its publication, which will allow the actors involved and subject to the regulations, to prepare themselves to comply with it. It is also expected that in the course of that year, the Personal Data Protection Law will be also approved.

Julio C. Vargas Solano
Managing Partner
García & Bodán
El Salvador