Ecommerce in Montenegro

Montenegro is one of the smaller e-commerce markets, but it is gradually growing, influenced by global trends and digitalization.

E-commerce in Montenegro has been growing steadily over the years. The COVID-19 pandemic accelerated the digital adoption. With an increasingly tech-savvy population, online shopping is becoming more popular, particularly among younger consumers. Local e-commerce businesses and platforms like Voli, Montenegro's leading supermarket chain, have launched online stores, while international platforms such as Amazon and AliExpress are also frequently used.

Challenges remain, particularly in payment processing and logistics, as cash on delivery is still common, and reliable delivery infrastructure is limited in certain areas. However, efforts to improve digital infrastructure and promote cashless payments are underway, with government support for digitalization initiatives.

Pursuant to the ECBC analysis, in the Montenegrin retail market, the online share is 6.4% and will increase by an average of 10.4% to 9.6% by 2028.

E-commerce legislation in Montenegro is developing to support and regulate the expanding digital economy. Montenegro continues to work on aligning its legal frameworks with EU digital commerce standards, aiming to boost consumer confidence and attract foreign and local investments in its e-commerce sector.

There is no need for a business to establish a local presence; products and services may be sold or offered from abroad. Foreign entities that wish to sell their goods/services in Montenegro can do so by establishing a local branch/entity regardless of whether they plan to sell their goods online or in a bricks-and-mortar store.

Even if a company chooses to do so, there is no mandatory requirement for a foreign company with a local presence to sell its goods/services online.

In general, no licences or permits are required for companies that want to establish an online presence. However, an obligation to abide to the laws of Montenegro exists in certain areas (in particular regarding EU companies), thus, to sell certain products such as dangerous chemicals, a permit must be obtained. In addition, to facilitate online gambling, a permit/concession to organise games of chance is required. Similar requirements may apply to other goods as well.

Furthermore, selling from abroad may require tax registration even without an established presence.

Even if e-commerce is only an extension of the bricks-and-mortar activity, and the business already has various supply and logistic contracts in place, there are some specifics for setting up an e-commerce platform that should be considered.

• Domain name: The domain name serves as an address for the e-commerce business. A wide choice of domain extensions is available, both national (.me), and international, more suitable for cross-border activity (such as .com). It is also possible to offer goods via marketplaces.
• Hosting services: Sourcing hosting services is a more complex process as there are various options. Hosting services may be acquired in particular as cloud servers, shared webhosting, virtual private servers and dedicated servers.
• IT-related services: A smooth ordering process is one of the key elements of creating a good customer experience. To achieve this, the e-commerce business has to ensure an appropriate level of IT services.
• Creative services: Sourcing creative services is required to set up a website, including both the design and technical aspects of various applications and functionalities, such as invoicing, accounting, marketing tools and customer relationship management.
• Logistics: Logistics is the backbone of a successful e-commerce business. The logistics processes include product sourcing, stock (inventory) management, order management, packaging and delivery, as well as the management of (and sometimes picking up) product returns.
• E-commerce logistics may also be outsourced to a third-party logistics provider. A new alternative to the traditional logistics chain is drop shipping. In this model, the e-commerce entity forwards customers’ orders to another company, which fulfils the orders by shipping the items directly to the customer on behalf of the e-commerce entity.
• Payments: Cash on delivery remains a popular payment method; however, a wide array of electronic and non-cash payments are also available to e-commerce businesses. These include payments by various types of credit and debit cards, quick online transfers, electronic wallets, mobile money, and alternative currency payment processors.

Specific restrictions do apply and relate to products/services which are restricted or banned for sale in Montenegro, most notably the sale of dangerous chemicals which can only be done with a licence and only to buyers with adequate licences/credentials, or organising gambling, which requires a concession. Other such restrictions apply to alcohol and cigarettes, which require confirmation that a buyer is older than 18. This may prove problematic to enforce in practice.

There is no such obligation, but if the e-commerce website is directed to consumers, the key is to ensure that all consumer rights are observed. This translates into significant differences compared to B2B relations, in every part of the transaction, so that crucial information and all consumer rights are observed before and after the conclusion of a contract, especially regarding product returns, liability for defective goods, etc.

On the other hand, if a website is dedicated to businesses only (e.g. sale of equipment to professionals only) – consumer regulations will not apply, but in this case it should be ensured that an online store is accessible only to professionals which might prove difficult, especially in cases where the e-commerce website is set up as an entity abroad and such barriers may clash or add difficulty with respect to personal data protection laws

The law does not stipulate any restrictions on the content and the layout of an e-commerce website.

However, the law does set out several requirements regarding the items of information which must be provided to the buyer before the purchase contract is concluded. Those items of information are:

1. the procedures to follow when concluding the contract;
2. contractual provisions;
3. general business terms/conditions, if they are an integral part of the contract;
4. languages offered in which to conclude the contract;
5. codes of conduct in accordance with which service providers act and how these codes can be reviewed electronically;
6. keeping the concluded contract and information on whether that contract will remain available. 

Thus, despite nearly complete freedom in website design, it is necessary for a website to provide the stated information to the consumer as well as any other potentially relevant information when making a purchase.

There is no such requirement in Montenegro; however, the website must display the languages it offers to conclude the contract and the buyer/user must understand what he/she is buying/requesting.

There are no specific requirements for publishing customers reviews.

The concept of a ‘dark pattern’ is not yet defined in law. There is only a general ban on misleading advertising.

 Advertising of price promotions must include information on:

1. type of sales benefits;
2. precise and clear determination of the product to which the sales benefit applies;
3. period of validity of benefits, indicating the beginning and end, if any;
4. total costs related to obtaining or taking over the product, including delivery, that is, a note that the costs are borne by the consumer, if they exist; and
5. other conditions related to the realization of sales benefits.

In case of issuance of vouchers, coupons or other tools for excersing the right to a benefit, information on the the issuer must also be included, as well as the monetary value or the amount of the discount.

Explicit consent is required for marketing communications through email or equivalent means, which is obtained through registration or other means when the user uses the e-commerce website.

• Price reductions 
• clearance sale
• price promotion (i.e., price reduction)
• promotional sale (i.e. promotion of new product)
• Vouchers and coupons
• Special sale benefits

To the best of our knowledge, no. The regular rules of the Consumer Protection Act apply, and as in the case of bricks-and-mortar sales, all consumers/users have the rights to make returns and protection from defective goods under this Act

There are no specific risks associated with competition laws in Montenegro.

Montenegrin laws follow EU trends and restrict business practices which restrict competition or provide grounds for the abuse of a dominant position in the Montenegrin market. Therefore, notwithstanding restrictions regarding the sale of certain items which are prohibited or require a licence, there are no restrictions on the sale or offering of services.

In Montenegro, payment and financial services are governed by the laws and bylaws issued by the Ministry of Finance and the Central Bank of Montenegro, and the law that regulates this legal area is the Law on Payment Transactions. There are no specific requirements for e-commerce.

In Montenegro, no special body is responsible for legal enforcement regarding e-commerce businesses. The Ministry of Public Administration has electronic communications as well as e-commerce in its jurisdiction, and the Ministry of Economic Development is responsible for all commerce-related questions which deal with issues non-specific to e-commerce.

The Inspector for IT service companies is the relevant inspector responsible for activity in the e-commerce sector. However, the Trade Inspector is also relevant for certain day-to-day issues, such as packaging, labelling, general product quality and consumer communication and information.

The Personal Data Protection Agency is responsible for all matters regarding personal data and is responsible for enforcing and monitoring data safety.

Consumers may seek to enforce their rights before a civil court. Proceedings should be handled expeditiously.

In cases involving e-commerce with the EU, Montenegrin authorities will contact and cooperate with EU authorities to exchange information and assist with dispute resolution.

Another option given by the law is alternative dispute resolution as Arbitration.

No changes/amendments to the Law on electronic commerce of Montenegro or other relevant laws have been announced. However, given that the trend of online shopping in Montenegro is constantly increasing, pursuant to the Montenegro Chamber of Economy it will be necessary to adopt a new law in the field of electronic commerce in following period.