The Consumer Protection Act of Bhutan, together with the Consumer Protection Rules and Regulations and the Guidelines on E-commerce, establishes a comprehensive legal framework for safeguarding consumer rights, including transactions conducted through online platforms.

According to Section 2.1 of the Rules and Regulations for Publication, no person may publish books, newspapers, and periodicals, whether in physical form or as electronic publications, without holding a valid licence issued by the Bhutan InfoComm and Media Authority (BICMA). Section 2.4 sets out the eligibility criteria for applicants. A licence may be granted only to a person who:
(i) is a citizen of Bhutan;
(ii) is of sound mind;
(iii) is not a political party;
(iv) has not been declared insolvent or convicted of a criminal offence under Bhutanese law, unless their reputation has been restored through due process; and
(v) holds less than 5% of shares in any other media licence issued by the Authority.

According to Section 1 of the Rules and Procedures for Imports from Third Countries, imports from third countries require import licenses issued by the Department of Revenue and Customs.

According to Art. 27 of the Customs Act of Bhutan, the government may impose restrictions or prohibitions on the import of goods. Section 6.1.3 of the Bhutan Customs Manual 2024 further clarifies that the import of restricted goods requires a permit or licence issued by the competent authority. Section 6.2 provides a list of such restricted goods, including wireless and remote-sensing telecommunication and broadcasting equipment.

Pursuant to Section 8 of the Guidelines for Licensing of Over-the-Top (OTT) Services, providers must ensure that at least 60% of their content is reserved for locally produced material in order to preserve and promote culturally and socially relevant content. The Guidelines define OTT as any application or service capable of delivering digital content to the public over an internet access network.

Annex I, point (p) of the "Payment Aggregators and Payment Gateways Guidelines 2020" stipulates that entities must adopt preventive measures to ensure that data is not stored on infrastructure subject to external jurisdictions. This requirement is mandatory for payment aggregators and recommended for payment gateways. Under Section 3, payment aggregators are defined as entities that enable e-commerce platforms and merchants to accept various payment instruments from customers, thereby facilitating the completion of payment obligations without necessitating merchants to develop their own payment integration systems. On the other hand, payment gateways are entities that provide the technological infrastructure to route and facilitate the processing of online payment transactions, without engaging in the handling of funds.
Section 10 of the "Data Residency Policy for Payment Systems Data 2021" provides that a payment service provider may store its payment data either on‑premises or in the cloud, provided that any transfer of payment data outside the country is subject to the prior written approval of the Authority. The Authority shall prescribe the specific terms and conditions for such approval.

Bhutan has not joined any agreement with binding commitments to open transfers of data across borders.

Bhutan does not currently implement a comprehensive legal framework governing the protection of personal data. Instead, it relies on sector-specific laws. The Information, Communications and Media Act provides a rudimentary basis for data privacy; however, its scope remains markedly limited in addressing broader privacy concerns.

The Information, Communications and Media Act of Bhutan 2018 imposes sector-specific data retention obligations on broadcasting licensees through Section 188, which mandates that licensees retain recordings of every programme broadcast for a minimum of six months and produce them upon request for regulatory scrutiny. This duty applies to broadcasting companies that obtained a valid licence from the Bhutan InfoComm and Media Authority (Section 178). Section 464.8 defines a “broadcasting service” as “an ICT service for providing broadcasting to persons having appropriate equipment, including broadcasting receiving apparatus, for receiving that service regardless of the means of delivery of that service, but does not include: a service (including a teletext service) that provides only data, or text (with or without associated still images); or a service that makes programmes available on demand on a point-to-point basis, including a dial-up service; or a service, or a class of services, that the Authority may determine and notify as not being a broadcasting service.”

Pursuant to Section 363 of the Information, Communications and Media Act, an internet service provider (ISP) shall not incur liability for merely storing content generated by third parties and made publicly accessible, provided that: (i) the ISP has no actual knowledge of any illegality associated with such content; (ii) it is not aware of facts or circumstances from which such illegality may reasonably be inferred; (iii) upon acquiring such knowledge or awareness, it acts expeditiously to remove or disable access to the content; or (iv) it lacks the technical capacity or cannot reasonably be expected, in the circumstances, to prevent public access. Section 364 further states that an ISP shall not be held liable for third-party content that is merely transmitted or routed through its systems to facilitate public access, provided it does not initiate the transmission, select the recipient, or alter the information transmitted. In addition, Section 368 permits any party who believes that material is being used without the authorisation of the copyright owner or their agent to notify the ISP of the alleged infringement.
Section 464.63 defines an ISP as any natural or legal person, or association thereof, that provides individuals and businesses with internet access and may also offer other internet-based services.

Pursuant to Section 363 of the Information, Communications and Media Act, an internet service provider (ISP) shall not incur liability for merely storing content generated by third parties and made publicly accessible, provided that: (i) the ISP has no actual knowledge of any illegality associated with such content; (ii) it is not aware of facts or circumstances from which such illegality may reasonably be inferred; (iii) upon acquiring such knowledge or awareness, it acts expeditiously to remove or disable access to the content; or (iv) it lacks the technical capacity or cannot reasonably be expected, in the circumstances, to prevent public access. Section 364 further states that an ISP shall not be held liable for third-party content that is merely transmitted or routed through its systems to facilitate public access, provided it does not initiate the transmission, select the recipient, or alter the information transmitted.
Section 464.63 defines an ISP as any natural or legal person, or association thereof, that provides individuals and businesses with internet access and may also offer other internet-based services.

Bhutan’s regulatory framework on SIM registration requires mobile network operators to collect and store users’ personal information together with proof of identity. Section 9 of the Code of Practice on Registration of Subscriber Identity Module (SIM) Cards stipulates that issuance of a SIM card requires: (a) a completed registration/application form, including a signed agreement and SIM card usage terms and conditions; and (b) a copy of the subscriber’s identity proof, as follows: (i) Bhutanese nationals: citizen ID card number, or, in the case of minors, the ID of a parent or guarantor; (ii) residents of Bhutan: resident permit number; and (iii) foreigners other than Indian nationals: passport number.
Section 9.2 further obliges service providers to maintain a register of all subscribers, both post-paid and pre-paid, and to keep a corresponding computerised database of this information.

The indicator "7.2.4 - Government Internet shut down in practice" of the V-Dem Dataset, which measures whether the government has the technical capacity to actively make internet service cease, thus interrupting domestic access to the internet or whether the government has decided to do so, has a score of 3 in Bhutan for the year 2025. This corresponds to "Rarely but there have been a few occasions throughout the year when the government shut down domestic access to Internet."

According to Sections 90–93 of the Information, Communications and Media Act, no person shall own or operate an ICT facility, or provide any ICT service, without a valid licence. Section 464 of the Act defines the scope of ICT services, including: (i) broadcasting services, such as mobile satellite and subscription broadcasting; (ii) information technology services, such as webcasting, e-mail, and other electronic services; (iii) Internet Protocol (IP) telephony; (iv) digital library and commercial information services; (v) network-based information and related specialised professional services provided electronically; and (vi) public switched data and other similar services. The Rules and Regulations on ICT Facilities and Services in Bhutan provide further information about this license.

According to Sections 90–93 of the Information, Communications and Media Act, no person shall own or operate a media facility, or provide any media service, without a valid licence. This requirement includes online media as defined in Section 464.