The rise of e-commerce and digital platforms in Iran has transformed how people buy and sell goods. But with rapid growth come challenges: privacy violations, misleading advertising, substandard products, and unclear seller obligations. To address these issues, lawmakers have introduced new consumer protection regulations designed to create transparency, build trust, and safeguard both buyers and sellers.
This article explores the latest consumer protection laws in Iran, their legal implications for online businesses, and the challenges of enforcement.
Key Principles of the New Regulations
The updated legal framework is built on three global principles:
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Transparency – ensuring clear, accurate information.
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Fairness – protecting consumer rights during and after transactions.
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Accountability – holding businesses and managers directly responsible.
Transparency in Online Sales
Under Article 34 of the Electronic Commerce Act, online sellers must disclose:
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Exact price in Iranian rials.
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Product material, country of origin, and warranty.
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Return and refund conditions.
🚫 Phrases like “call for price” are prohibited. Businesses that fail to comply risk license suspension.
The Right to Withdraw and Return
The Consumer Protection Act (Article 37) guarantees a 7-day withdrawal period for online purchases.
✅ Consumers may return products for:
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Nonconformity with specifications.
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Hidden defects.
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Even a simple change of mind.
❌ Exceptions include:
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Custom-made goods.
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Perishable items.
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Downloadable digital content.
Sellers must cover return shipping, and delays in refunds trigger daily fines (2% of purchase value).
Data Privacy and Cybersecurity Obligations
Growing concerns over data misuse have led to stronger privacy rules.
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Businesses need explicit consent before collecting or storing consumer data (Article 58, Note 2).
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Breach notifications must be sent to authorities (Cyber Police, Communications Regulatory Organization) within 72 hours.
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International platforms are also bound by these rules.
📌 Case Example: A foreign e-commerce company was fined for transferring Iranian user data to overseas servers without proper disclosure.
Ban on Misleading Advertising
The 2023 directive by the Ministry of Industry, Mine, and Trade bans:
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False claims about product quality.
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Fake urgency (e.g., misleading countdown timers).
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Fabricated popularity statistics.
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Enhanced or digitally altered images without disclaimers.
Businesses must provide evidence for comparative advertising.
Online Consumer Complaint System
Iran has launched an electronic complaint platform supervised by the Consumer and Producer Protection Organization.
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Customers can file and track complaints online.
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Over 60% of cases resolved in under a month.
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However, lack of mandatory participation and weak enforcement remain concerns.
Managerial Liability in Online Businesses
For the first time, executives and board members face personal liability under Article 22 of the amended Consumer Protection Act.
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CEOs can be fined or barred from business activities.
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Corporate liability no longer shields decision-makers.
📌 Example: The CEO of a major e-commerce platform was fined and banned for selling smuggled smartphones, in addition to company penalties.
Implementation Challenges
Despite progress, several hurdles remain:
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Low consumer awareness of rights.
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Limited resources at regulatory agencies.
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Compliance costs that burden startups and small businesses.
Periodic review, legal literacy campaigns, and government support are essential for long-term success.
Conclusion
Iran’s new consumer protection regulations for online businesses mark a significant step toward a safer, more transparent digital economy. Their effectiveness will depend on:
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Stronger enforcement mechanisms.
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Civil society engagement.
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Cooperation between regulators and private companies.
✅ A balanced approach is needed—one that protects consumer rights while supporting e-commerce growth in Iran.
