Ecommerce in Ukraine

The e-commerce sector in Ukraine has experienced return to its pre-martial law growth trajectory. In 2017, the market size was approximately USD 2 billion. By 2020, according to one of the market players, Ukrainians made online purchases totalling nearly USD 4 billion.

However, the development of e-commerce was temporarily halted due to the imposition of martial law. In 2024, the sector is witnessing a resurgence. This year, the Ukrainian e-commerce market boasts 15 leading players with a combined revenue of 97.5 billion UAH (approximately USD 2.3 billion) in the goods segment, 10 top service companies in e-commers with a combined revenue of 13.745 billion UAH (approximately USD 329.88 million) as well as top 5 infrastructure companies involving in e-commerce with a combined revenue of 332 million UAH (approximately USD 8 million).

In addition to national marketplaces, online stores, and price aggregators, Ukrainians are increasingly utilizing foreign platforms, primarily from China, the EU, and the US.

Ukrainian law does not set any express restrictions on the possibility of foreign companies to sell their goods/services online in Ukraine. They can start selling online from abroad without an established presence in Ukraine.

If the commercial activity specifically targets Ukrainian consumers, e.g. the advertising or marketing is directed to consumers in Ukraine, the activity must comply with Ukrainian consumer protection, advertising, language and other regulations, even if the business entity does not have an established presence in Ukraine. In such event, the requirements for a tax presence should be also verified.

Ukrainian law does not set any additional licensing or permitting requirements for e-commerce compared to the bricks-and-mortar retail. No specific licence or permit is needed to open an online store.

Some licencing/permitting requirements may apply to e-commerce businesses, as to all other retail channels, in cases of selling certain specific types of products, e.g., alcohol.

There are no specific requirements for contracts that must be concluded by e-commerce businesses. In practice, the scope of required contracts depends on the commercial activity in Ukraine. In addition to traditional contracts that are common for any type of retail, e.g., supply and logistic contracts, e-commerce businesses should normally also consider entering into contracts in the following areas:

• Domain/web hosting services: If setting up the e-commerce platform with a Ukrainian domain extension (e.g., com.ua), the businesses should arrange for the respective domain registration and secure website hosting.
• Data hosting services: The data of the e-commerce platform must be stored somewhere, e.g. in land-based servers or in the cloud.
• Other IT-related services: The e-commerce business must ensure an appropriate level of related IT services, like website support, online customers support, other design and technical aspects of various applications and functionalities
• Payments: A modern e-commerce platform should allow the customers to use a wide range of online payment options like bank cards, electronic wallets, mobile money, etc.

In Ukraine only very limited categories of products are subject to any restrictions of being available for online purchase. For example, medicines are generally available to be sold only in bricks-and-mortar pharmacies.

The businesses should decide and verify upfront if the e-commerce website is accessible to professionals only or consumers as well. In B2C relations, where a website is accessible to consumers, all consumer protection rights must be observed (product returns, liability for defective goods, etc.). If a website is dedicated to professionals only, no consumer protection rules apply.

Ukrainian e-commerce legislation does not impose any express obligations on the elements of an e-commerce website. Such mandatory elements are commonly triggered by the requirements of other relevant law requirements, such as data privacy (website data protection policy and cookies), consumer protection (information about the products), advertising, etc.

Under the Law of Ukraine “On Ensuring the Functioning of Ukrainian as the National Language”, all companies offering products/services to customers in Ukraine, including via the Internet, must provide information on such products/services in Ukrainian (but this can be duplicated in any other language).

Ukrainian legislation on e-commerce does not directly establish any legal requirements for publishing customer reviews. However, when publishing reviews, businesses must comply with data protection regulations, that includes obtaining consent from individuals before using their personal data, such as names or photos, in reviews.

In practice, top Ukrainian e-commerce companies publish internal policies on customer reviews and comments.

Ukrainian legislation on e-commerce does not regulate ‘dark patterns’ matters. However, in practice, certain elements of a store interface can be considered dark patterns if they are designed to deceive or manipulate users into making decisions they might not otherwise make, e.g. hidden costs, misdirection, etc.

In Ukraine, the use of terms such as “discount” or “reduced price” or any other similar terms, is permitted only under the following conditions:

• The discount or price reduction must apply to products directly sold by a business entity.
• Such discounts or price reductions must be offered for a specified and limited period.
• The price of the product must be lower than its usual price.
• The use of the term “sale” or any other similar terms is permitted only under the following conditions:
• The sale must involve all products within a specific location or a clearly defined group of products.
• The duration of the sale must be limited in time.
• The prices of the products on sale must be lower than their usual prices.

After publicly announcing the start of a sale, discount, or price reduction, consumers must be informed about the price of the product before the sale, discount, or price reduction, as well as the price of the same product after the promotion begins.

Explicit consent is not always required. The basic rule of Ukrainian law in this respect is that commercial electronic messages may be sent to a recipient only provided such recipient gave his/her consent to the receipt of such communication. The exemption from this rule states that commercial electronic communications may be sent without the consent of a recipient only if the recipient can unsubscribe from such notifications.

Local authorities in Ukraine pay particular attention to the advertising of products that subject to specific restrictions, e.g. promotion activities for alcoholic beverages, tobacco products, infant formula and baby food, medicines, medical equipment, etc.

As regards returns, consumers are entitled to withdraw from a contract made on-line within 14 days of the date of receiving the purchase confirmatory document (e.g., sales receipt) or receipt of the product. The seller must return the money within 30 days of the withdrawal notice. Any logistics expenses relevant to the return of the product must be covered by the seller.

In terms of defective products, the same rules apply to traditional and online sales.

The key competition risks in online selling are traditionally the same as in other retail channels. They mainly include the vertical aspects of relations between suppliers and distributors (e.g., selective distribution, competitive restrictions, resale pricing control etc), as well as unfair practices by sellers (false advertising or representation of a good or service, tied selling, etc).

Ukrainian competition law and practice currently does not provide any specific rules or guidance to aspects that are specific to online selling, such as automated pricing software, restricting goods from being sold or advertised online, etc.

Payments in the e-commerce field may be made using different payment instruments, including electronic money, by transfer of funds or cash payments. All of these payment methods are subject to the general requirements of the legislation on cash and non-cash payments under Ukrainian laws.

The seller, payment system operator or other person who has received payment for goods/services must provide the consumer with an electronic document (sales receipt, ticket, coupon, etc) confirming the receipt of funds and indicating the date of payment.

In Ukraine no specific authority is responsible for legal enforcement in e-commerce only.

In terms of relations with consumers, the main Ukrainian consumer protection authority is the State Service of Ukraine on Food Safety and Consumer Protection, which is responsible for monitoring and protecting the rights of consumers in all spheres, including online.

Regarding data protection, the regulator in Ukraine is the Ukrainian Parliament Commissioner for Human Rights.

In Ukraine, consumers can seek to enforce their rights with the regulator, the State Service of Ukraine on Food Safety and Consumer Protection, or the courts. The law does not suggest any specific sites or methods for resolving consumers’ disputes in the e-commerce sector.

The legal relationship between the seller and the buyer is fully regulated by the Law of Ukraine “On Protection of Consumer Rights”. The Law of Ukraine “On Electronic Commerce” sets out general rules and specifics of e-commerce in Ukraine.

In 2023, the new Law of Ukraine “On Consumer Rights Protection” was adopted, but it will only come into force after the end of martial law in Ukraine. This Law introduces certain innovations to e-commerce in Ukraine. In particular, the term ‘automated system of verified sellers’ will be introduced, which provides for the obligation to collect, accumulate and process information about e-commerce entities. A state information system will also be established, which will be part of the unified state web portal ‘E-buyer’. The new Law will also increase liability for sellers. The new provisions will detail violations and sanctions for them.