Laos has adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.

Laos has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.

The Decree on E-Commerce No. 296/GOV dated April 2021 provides a comprehensive framework for consumer protection that also applies to online transactions. The Decree sets out the regulatory framework for businesses engaged in e-commerce operations, the procedure and requirements for e-commerce contracts, and the management of e-commerce activities by the different government ministries.

According to Art. 4 of the Law on Law on Customs, the Lao PDR government should encourage individuals, entities, and organizations to participate in developing, managing, and utilizing the payment system to limit the use of foreign currencies.

According to the Decree on E-Commerce No. 296/GOV, the existing and new e-commerce businesses that trade through their platforms or electronic marketplaces are required to notify and submit documents to the Ministry of Industry and Commerce to receive an acknowledgment certificate. According to the Decree, traders using e-commerce platforms are required to provide information on goods and services, including their business operator’s information such as name, address, contact information, company registration certificate, and business operation license.

It is reported that until 2020, there were no statutory limits on foreign ownership or control of commercial enterprises for digital-related products and services. However, in practice, many companies have been seeking a local partner to enter the market. In 2021, according to the Decree on E-Commerce No. 296/GOV, foreign investment in e-commerce is subject to a limit of 90% of the entity’s shares, and a minimum registered capital of LAK 10 billion (approx. USD 1 million).

Art. 73 of the Standards Law allows agencies that grant standard-conformity certificates in Lao PDR to be accredited by an accreditation body recognized internationally or regionally.

According to Art. 18 of the Law on Telecommunications, the Ministry of Post and Telecommunications manages the importation of hi-technology telecommunication equipment. The regulation of the law states that the import of some types of telecommunication equipment should be subject a further control by the Ministry of Post and Telecommunications. The imported telephone sets and computers should also have a menu and be able to use content in Lao language.

In 2020, Lao PDR has issued notices to online media to register with the government or be prohibited from publishing information and news on social media platforms like Facebook. It is reported that the registration enables the government to enforce the 2015 Law on Prevention and Combating Cyber Crime, which categorizes the following as offenses causing damage via online social media: i) Posting data and information containing aspects of persuading people to resist the government or separate national solidarity; ii) posting data and information destroying national security, peace, the order in society, national culture and fine tradition of the nation; iii) posting data and information containing blaspheming and using impolite words through the computer system.

According to the Decision on Approval to Operate Internet Data Center, all internet data centers are required to have a licence to operate.

According to Art. 15 of Law on Consumer Protection, individuals, legal entities, and organizations intending to advertise goods and services must seek approval from the information and culture sector in accordance with laws and regulations.

It has been reported that, following the signing of the Law on Electronic Transaction, internet service providers can face penalties for permitting internet users to publish false information about the government, or information meant to discredit it. According to Art. 10, telecommunications and Internet Service Providers (ISPs) are required to monitor information disseminated through their services for censorship of criticism of the Lao PDR government and other political content. In addition, according to Art. 18, the telecommunications and communications sector has the responsibility to supervise and inspect the dissemination of information by Internet service users and orders should be issued to ISPs to restrict access to information, temporarily or permanently suspend the connection of those who violate this decree or other related regulations and laws. Moreover, according to Art. 7 of the law, website owners or managers have the responsibility to thoroughly check the content and information before allowing others to disseminate it through their website, despite the fact that, according to the Lao Electronic Transactions Law, intermediaries are specifically not responsible "for monitoring the information contained in a data message or electronic record they handle for a user".

According to Art. 8 of the Decree on Internet Information Management No. 327/GOV, individuals are required to register on social media sites with their full names and current address, making it difficult for people in Lao PDR to share news articles or other information anonymously.

The Law on Electronic Transactions establishes a safe harbour regime for intermediaries for copyright infringements. According to Art. 34 of the law, an intermediary is not liable:
- to monitor any information contained in a data message or electronic record that it handles for a user;
- for a data message or electronic record that it handles for a user if an intermediary is not an originator;
- for a data message or electronic record for which an intermediary has no actual knowledge that (the information) gives rise to liability;
- for background on a data message for which an intermediary has no actual knowledge.

The Law on Electronic Transactions establishes a safe harbour regime for intermediaries beyond copyright infringement. According to the law, an intermediary is not liable (i) to monitor any information contained in a data message or electronic record that it handles for a user; (ii) for a data message or electronic record that it handles for a user if an intermediary is not an originator; (iii) for a data message or electronic record for which an intermediary has no actual knowledge that (the information) gives rise to liability; (iv) for background on a data message for which an intermediary has no actual knowledge.