The Boom of E-commerce on Social Media May Be Coming to an End

It appears that the good days of e-commerce on social media are numbered. A proposed law aimed at combating this largely parallel commerce may make life difficult for thousands of people who use these platforms to sell various products and services, often under the radar of the tax authorities.

The Proposed Law

The proposed law, which enjoys broad support within the ARP, proposes the creation of an electronic commerce investigation and control brigade within the Ministry of Commerce and Export Development. This brigade will comprise members of the economic controller corps and other specialized technical bodies, appointed by the Ministries of Commerce and Export Development, Finance, and Communication and Digital Economy.

Powers of the Brigade

The brigade will have extensive powers, ranging from analyzing social media traffic and detecting infringements to defining the terms of reference for various e-commerce activities.

Becoming a Professional

To become a professional in this field, one will need to sign a terms of reference document, an electronic process managed by a dedicated platform. This applies to retail sales, real estate and commercial brokerage, consulting, intellectual activities, and other activities that can be exercised via the internet. Note that an individual cannot exercise more than three activities simultaneously.

Requirements

The signed terms of reference document must be accompanied by, among other things, an extract from the National Business Register for merchants, a certificate of registration with the Order of Engineers for engineers, and a professional qualification certificate for artisans.

Notification of Changes

Any change in address or activity must be notified to the Ministry of Commerce and Export Development within 30 days.

Data Protection

The protection of customers' personal data is mandatory. The proposed law has established the customer's right to exchange a product or request a refund without giving a reason, within 3 days of receiving the product. However, the customer will bear the costs associated with this operation. This period is extended to 10 days if there is a defect in the delivered product.

Exceptions

This does not apply to perishable products with a shelf life of less than 3 days, products incorporated into a manufacturing process, or products that are not in their original state or whose prices vary (e.g., gold or silver). The same applies to hotel reservations, restaurant bookings, event organization, and car rentals. Similarly, books, magazines, CDs, and used software cannot be returned.

Digital Advertising

Digital advertising must include key information, such as the commercial identity of the seller and their contact details.

Sanctions

Sanctions can range from a warning to a fine of 1,000 to 5,000 dinars, or a temporary or permanent ban.

Justification

According to the justification of the proposed law, 80% of e-commerce transactions on social media are cash-based, thus evading state control. While adopting the law may generate additional tax revenue, clandestine operators in this lucrative business will likely find ways to evade it.