Distance selling and e-commerce: obligations of sellers and rights of consumers

Only a few years ago, an online store seemed like a novelty.
Today, we order and shop “with a click,” pick up goods from parcel lockers, and receive deliveries from other continents or from restaurants and stores just two streets away.
And while people tend to embrace technological progress quite easily, caring mainly about whether the desired item will arrive on time, it is necessary that regulations follow the entire process and protect consumers throughout it.
Distance selling, although a broader term than electronic commerce, is increasingly becoming just that – e-commerce. However, to engage in it, we must first determine how it is regulated by law.

What Is Distance Selling

Distance selling means making an offer and concluding a contract outside business premises, using exclusively means of distance communication.
These include websites, mobile applications, e-mail, telephone, catalogues, TV sales, SMS/MMS messages, and automated voice systems.
It therefore covers both “classic,” now rare channels (TV shops, catalogues, mail orders, printed ads with order forms) and modern ones (web shops, marketplaces, dropshipping).

Electronic Commerce (E-Commerce)

A particularly significant subset of distance selling is electronic commerce, which can take several forms, such as:

1. Online store – where a trader sells goods or services on their own website,
2. E-commerce platform / marketplace – an electronic trading platform connecting multiple traders and consumers, i.e., an online shopping mall,
3. Dropshipping – where an order is placed through an online store or platform, but the goods are shipped directly from the manufacturer or wholesaler to the consumer, without passing through the trader’s hands.

The advantages of e-commerce for both sellers and consumers are numerous, which explains its growing popularity and prevalence:

• lower fixed costs (no need to rent premises, pay staff salaries, etc.);
• sales without time limits – 24/7 availability;
• access to foreign markets – international delivery is increasingly accessible.

All in all, e-commerce is often much simpler than traditional retail.
However, without clear rules and control, the potential for abuse, fraud, and misunderstandings is also high.
If rules are precisely defined and clearly displayed—so that consumers are properly informed, payment and delivery methods are transparent, and the right of withdrawal within 14 days and complaint procedures are specified—the likelihood of dissatisfaction is significantly reduced.

Who May Sell Online

The owner of an online store may be a legal entity, an entrepreneur, or another person authorized under a special regulation to sell such goods or services (e.g., regulated professions, registered farmers).
An individual (natural person) may not be the owner of an online store.
Furthermore, if a particular type of goods requires a special regime or license for physical sale, the same applies to online trade (for example, medicines cannot be sold online, and certain supplements and medical devices require specific permits).

E-commerce may involve trade with:

• other businesses, wholesale (the so-called B2B model); and
• consumers, retail (the B2C model).
  When selling to consumers, traders must ensure compliance with consumer protection laws.

 

Specifics of Online Sales

1) Activity Code (Business Registration with APR)

If online sales are your main business activity, it must be registered as such (e.g., “retail trade via mail order or via Internet”).
However, if you already have a registered business activity and simply introduce online sales as an additional channel, you do not need to register a new activity—unless and until online sales become your primary business.

2) Fiscalization

Your fiscal obligations depend on whether you deliver goods to consumers yourself.
If you personally deliver goods to consumers, you must issue a fiscal receipt upon delivery.
If delivery is handled by a courier service or the postal service, you may send the invoice electronically (e.g., via e-mail).

3) Prices and Currencies

Prices must be clear and unambiguous.
Regardless of whether you show prices per unit, with or without VAT, in installments or in full—the final total price, including VAT and all additional costs (delivery, handling fees), must be clearly displayed next to the product.
If you sell to consumers in Serbia, even if you also offer cross-border delivery, prices must be displayed in RSD (Serbian dinars). You may also show a foreign currency equivalent, but the domestic consumer must see the price in dinars.

4) Electronic Contracts

Although offers and acceptances (adding to cart and confirming an order) are made electronically, such a contract is legally valid as if it were concluded in person.
Naturally, transactions that require special formal procedures (e.g., transfer of real estate ownership) cannot be conducted through e-commerce.

5) Trader Identity and Contact Information

The website must clearly display: business name, registered office, contact details (e-mail, phone), and registration information necessary for communication with consumers and supervisory authorities (commonly listed in the website footer).

 

Mandatory Pre-Contractual Information

Before placing an order, the trader must clearly provide information on:

• essential characteristics of the product/service,
• the total price,
• delivery costs,
• payment methods,
• delivery terms and deadlines,
• the right of withdrawal (who pays for returns, applicable exceptions),
• complaint and non-conformity policies,
• privacy and cookie policies.

 

Contract Confirmation and Withdrawal Form

Before concluding the contract, the consumer must agree to the pre-contractual information or terms of service.
Upon conclusion of the contract, and at the latest upon delivery, the trader must send an e-mail containing:

• confirmation of order/contract and invoice;
• a PDF form for withdrawal within the statutory period.
  The invoice and withdrawal form may also be physically included with the goods.

 

Consumer’s Right of Withdrawal

The consumer’s right of withdrawal is governed by the Consumer Protection Act.
A consumer in e-commerce may withdraw from a contract within 14 days, without stating reasons and without incurring any costs other than those legally permitted (e.g., direct return shipping costs).
This period begins upon receipt of the goods.
If multiple items are ordered together, the period starts from the delivery of the last shipment or item.
In the case of recurring deliveries, it runs from the first delivery.

The trader must refund all payments (including the least expensive standard delivery option) within 14 days from the day the withdrawal notice is received.
The consumer must return the goods within 14 days from sending the withdrawal notice and bears the direct cost of return, provided they were clearly informed of this in advance.
The consumer is liable for any diminished value of the goods resulting from handling beyond what is necessary to establish their nature, characteristics, and functionality.

Personal Data Protection (GDPR/Domestic Law)

Online sales inevitably involve the collection of personal data (name, address, phone number, e-mail, etc.).
Depending on where consumers are located, compliance with GDPR or the Serbian Law on Personal Data Protection is required.

Trader obligations include in particular:

1. Data minimization – collecting only data necessary for contract performance;
2. Information on processing – publishing a privacy policy on the website;
3. Retention periods – e.g., until delivery or until expiration of legal periods for complaints or accounting records;
4. Limited data sharing – only with entities necessary for contract execution (e.g., courier services);
5. Enabling data subject rights – access, correction, deletion, objection, and the right to lodge a complaint with the Commissioner.

 

Conclusion

Launching an online store in Serbia involves not only business but also legal steps that must be fulfilled.
First, determine whether the type of goods or services you plan to offer requires a specific permit or authorization from a competent authority.
If so, such permits must be obtained before commencing operations.
Second, only registered legal entities and entrepreneurs may lawfully engage in online trade.
This means that registration with the Serbian Business Registers Agency (APR) is a mandatory step, as individuals without registered activities cannot legally sell online.
Third, it is necessary to adopt internal policies and regulations governing relations with consumers and users, particularly:

• General Terms and Conditions, which represent the basic contract with customers;
• Consumer Protection Policy, ensuring compliance with the Consumer Protection Act;
• Personal Data Protection Policy, ensuring alignment with the Law on Personal Data Protection and GDPR standards.

A properly established legal framework not only ensures compliance with the law but also builds consumer trust.

Law Firm Petrović Mojsić & Partners