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Another step towards the formalization of relations in the IT sphere

10/ 10/ 2023
  Author: Ihor Shein, attorney at Dynasty Law & Investment The Verkhovna Rada of Ukraine adopted the law On digital content and digital services No. 3321-IX. What can be said about the essence of this normative act? The law regulates the relationship between the seller of an IT product and its consumer, that is, between IT companies and people who use the software. The Law also defines the responsibility of IT companies to the consumer and the state for violation of rights in the provision of IT services. Particular attention should be paid to the regulation of the provision of information by providers of digital content and services regarding the installation procedure, rules and conditions of use of products, setting the cost of services and the consequences of violating the specified requirements. This means that from now on, a high-quality and well-written user agreement, privacy policy, and user manual will have real legal weight and significance for the companys security. Before the implementation of the Law, these documents were considered rather a rule of good tone and professionalism of the IT company, as they were not controlled by the state and legislation. From now on, inaccuracies or incorrect information in the documentation may lead not only to the loss of users, but also to fines and other financial losses associated with the elimination of errors and compensation for damages caused to users. It should also be noted that the Law obliges providers of digital content and services to register on the Unified State Web Portal for consumers in the field of e-commerce. Currently, the indicated web portal is not functioning. The law will enter into force on March 2, 2024, and in the meantime IT companies and the state have time to prepare.

Author: Ihor Shein, attorney at Dynasty Law & Investment

The Verkhovna Rada of Ukraine adopted the law “On digital content and digital services” No. 3321-IX.

What can be said about the essence of this normative act?

The law regulates the relationship between the seller of an IT product and its consumer, that is, between IT companies and people who use the software.

The Law also defines the responsibility of IT companies to the consumer and the state for violation of rights in the provision of IT services. Particular attention should be paid to the regulation of the provision of information by providers of digital content and services regarding the installation procedure, rules and conditions of use of products, setting the cost of services and the consequences of violating the specified requirements.

This means that from now on, a high-quality and well-written user agreement, privacy policy, and user manual will have real legal weight and significance for the company’s security. Before the implementation of the Law, these documents were considered rather a rule of good tone and professionalism of the IT company, as they were not controlled by the state and legislation. From now on, inaccuracies or incorrect information in the documentation may lead not only to the loss of users, but also to fines and other financial losses associated with the elimination of errors and compensation for damages caused to users.

It should also be noted that the Law obliges providers of digital content and services to register on the Unified State Web Portal for consumers in the field of e-commerce. Currently, the indicated web portal is not functioning.

The law will enter into force on March 2, 2024, and in the meantime IT companies and the state have time to prepare.

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