Ecommerce in Albania

The e-commerce sector in Albania benefits from rapid development that boosts different sectors of the economy, from retail trade to services. The general population’s increasing access via the internet has objectively facilitated and amplified the level of electronic transactions, even more so during the pandemic.

According to a survey carried out by the Albanian Institute of Statistics during 2018–2019 for the purpose of studying the usage of information and communication technology in households and by individuals, 68.6% of the population aged from 16–74 years used the internet in the “last quarter” of 2019, out of which 87.1% used it on a daily basis. Online purchases of clothes had the largest percentage of transactions (82.6%), with growth of 4.0% from 2018.

The impact of the COVID-19 pandemic on e-commerce during 2020 was very high. Many people were compelled by circumstances to purchase necessary goods and services online. As a consequence, requests for activating bank cards (credit cards, debit cards, prepaid cards) significantly increased during the previous year.

According to Albanian e-commerce law, individual persons and legal entities are free to offer “information society services” not conditioned on an authorisation or other legal requirement. There are no provisions restricting businesses from running an online shopping platform. However, foreign entities wishing to sell their goods/services online in Albania may perform such activity through a local subsidiary or branch.

It should be noted that regardless of whether a foreign company establishes a local presence or not, consumer protection requirements should be adhered to on online platforms directed to Albanian consumers. Such requirements refer to consumers’ rights, language, and restrictions related to advertisement, online contracts, etc.

There are no authorisation, licence, permit or similar requirements envisaged by Albanian law as a prerequisite to conduct e-commerce business. Businesses are free to engage in e-commerce without being subject to general regulatory requirements applicable to traditional retail activities. Nevertheless, the service provider is required to provide the relevant authorities and customers with certain general information, including its commercial name, company headquarters, website, email address and company’s registration data.

Although there are no specific provisions regulating this topic compared to the traditional retail sector, there are some specifics for setting up an e-commerce platform that should be taken into account:

• logistic services;
• IT and hosting services;
• the domain;
• app development and maintenance contract services;
• marketing and creative services;
• payment and bank services.

An e-commerce website directed to individual consumers should enforce service quality and respect all consumer rights. This means that the website’s T&C or other form of online contract should contain all the mandatory information and observe consumer rights before and after the conclusion of a contract by avoiding any clauses deemed abusive. In the event of a breach of quality and logistic service, the consumer is entitled to complain to the competent consumer authority.

Conversely, if a website is dedicated to businesses/professionals only, consumer regulations will not apply provided that the online store is accessible only by professionals. B2B relations (partnerships, contracts) should comply with competition regulations.

Albanian law does not explicitly regulate an e-commerce website or the mandatory elements it should contain. However, the following information and data are required to be provided by the service provider:

1. trade name of the service provider or its legal name;
2. head office address;
3. email address or any other detail that allows fast and efficient communication;
4. business registration number;
5. data concerning the competent supervisory authority if the service provider operates in a regulated industry;
6. data concerning the competent regulatory body, professional title and country of issuance, and applicable rules governing the profession for regulated professions;
7. the unique identification number of the entity or NUIS (for entities established in Albania).

This information should be provided clearly, accurately and easily understood concerning the offered goods and services with a special focus on the prices. Information related to the price of goods and services should be clear and easily understood, including the fact that the price is final includes all applicable taxes and delivery costs.

According to consumer protection regulations, the obligation to use the Albanian language with Albanian consumers is wide and quite general. It requires businesses to use the Albanian language in all such communication, including information about products and services and the respective advertising, with only certain exceptions (logos, proper names, trademarks, etc.) which may be used in the original language. It should be noted that in practice, this requirement is deemed a general one and usually referred to conventional advertisements, not online ones. The contract as well as warranties should also be provided to Albanian customers in the local language.

There are no specific provisions regulating B2B relations regarding language.

There are no general restrictions limited to online purchases. Similar restrictions applicable to traditional sales on product selection apply to online sales as well. Businesses engaged in e-commerce should consider local restrictions applicable to their specific product.

The main difference compared to traditional sales is that, as a rule, consumers are entitled to withdraw from a contract made on-line within 14 days as of the date of delivery or the contract’s conclusion for the provision of services, without providing any reasons or cause. Businesses must inform consumers of their right to do this, e.g. by providing them with the appropriate form of such statement. If the business does not inform the consumer of this right, the consumer may withdraw from the contract within 12 months as of the delivery date.

If the consumer decides to withdraw from the contract, she/he is entitled to the reimbursement of the delivery cost but not exceeding the least expensive type of standard delivery offered by the seller.

There are no differences between traditional and online sales regarding the standard ‘warranty’ (i.e. the seller’s liability for physical and legal defects) or the manufacturer’s ‘guarantee’.

This information, and details of the goods or services offered, should be provided in a clear and precise manner that can be easily understood by the wider public.

The service provider should ensure that commercial communications include, at a minimum:

• a clear indication of the commercial nature of the communication;
• sufficient information to identify the subject on whose behalf the communication is being sent;
• clear instructions on the terms and conditions of any benefits offered in the communication;
• clear instructions for participating in competitions or promotional games, where permitted by law.

Albanian law does not provide specific rules and regulations applicable to online selling in particular, hence the general competition rules and principles apply. Online selling is directly related to the consumers when providing them with various competitive offers; the competition authority must ensure that the online market (as any other retail or wholesale traditional market) works well for consumers. In this aspect, the manufacturer or supplier must not impose unjustified restrictions of competition to or between retailers, similar to the “classic” price-fixing arrangement restricting the ability of the retailer to set the price at which it will resell the suppliers’ products. However, there are circumstances when manufacturers or suppliers may impose the respective standards, such as the quality standards for online distribution in certain justified circumstances of selective distribution systems.

Albania is a candidate for EU membership and has partly transposed EU competition rules and regulations. In addition, the acquis communautaire applies in Albania as well, meaning that any new EU regulation or practice would also have an impact on the Albanian competition rules and regulations.  

Generally, regular e-commerce stores do not fall under financial services regulations. However, the processing of customer payments constitutes a regulated activity. There are no particular provisions, while in practice the usual banking and financial payments services apply to e-store customers.

The main competent public authority is the Consumer Protection Commission as well as other government authorities, such as the Market Surveillance Inspectorate and Data Protection Commissioner. The e-commerce regulations set out the penalties applicable in the event of infringements.

In Albania, consumers can seek to enforce their rights in one of the following ways:

• demanding the trader, as appropriate, repair, replace, proportionally reduce the price or cancel the contract;
• filing a complaint with the Consumer Protection Commission, which in return can impose a fine on the trader as well decide on damage compensation;
• filing a claim with the arbitration tribunal or local courts.

Although there are no anticipated legal developments on the horizon regarding this issue, given that the e-commerce business is a contemporary and innovative sector, it is expected that Albanian legislation will adapt its current legal framework according to EU initiatives.