As more foreign companies sell goods, software and services into Iran, understanding the country’s electronic commerce framework has become essential. Iran regulates digital trade primarily through its Electronic Commerce Act, supported by rules on data, consumer protection and electronic payments.
The legal foundation
Iran’s Electronic Commerce Act gives legal effect to data messages, electronic records and electronic signatures, placing them — when the statutory conditions are met — on the same footing as paper documents and handwritten signatures. For an international business, this means a contract concluded online can be valid and enforceable in Iran, provided the parties can demonstrate authenticity, integrity and attribution of the electronic record.
Electronic signatures and authentication
The Act distinguishes between ordinary electronic signatures and “secure” electronic signatures that rely on certified infrastructure. Secure signatures carry a stronger presumption of reliability before the courts. Where a transaction is high-value or likely to be disputed, foreign parties should insist on robust authentication and retain complete logs of the contracting process.
Consumer protection and disclosure
Businesses selling to Iranian consumers face mandatory disclosure duties: clear identification of the supplier, the essential characteristics and total price of the goods or services, delivery terms, and the consumer’s withdrawal rights. Misleading advertising and unfair terms expose the supplier to liability.
Key practical points for foreign businesses
- Cross-border payment remains the most complex issue; structure your settlement mechanism carefully and in advance.
- Data handling obligations apply to personal information collected from Iranian users.
- Recordkeeping of the full electronic transaction trail is critical to enforceability.
- Local-language terms reduce disputes; a bilingual (English/Persian) set of terms is best practice.
PAD International Group advises foreign technology and trading companies on compliant e-commerce structures, platform terms, and dispute strategy in Iran.