Tehran E-Commerce Association Calls for Review of Pindo Case Ruling

The Tehran E-Commerce Association has called for a renewed review of the judicial ruling issued against Pindo and its CEO, warning that the verdict could have serious legal, economic, and social consequences for Iran’s digital economy.

In response to the final decision of Tehran’s Court of Appeal, the association stated that penalties such as flogging and the shutdown of a business hosting tens of thousands of sellers are disproportionate, contrary to fundamental legal principles, and potentially damaging to investment security and the future of the country’s digital economy.

Concerns Over Disproportionate Punishment and Economic Impact

According to a statement released by the association’s public relations office, the ruling follows an event held during Yalda Night at Pindo’s offices. Under the verdict, Pindo’s CEO, Nima Ashrafzadeh, was sentenced to flogging, while the company’s business license was revoked, effectively shutting down a platform that serves more than 66,000 sellers.

The association described the penalties as excessively harsh and inconsistent with the nature of the alleged offense. It argued that such decisions directly contradict Iran’s stated need to support knowledge-based, innovative businesses and to strengthen the digital economy.

Judicial Decisions and Investment Security

The statement emphasized that the digital economy is a key driver of economic growth, job creation, and innovation in Iran. It also referenced a recent meeting hosted by the President with digital economy stakeholders, during which support for these companies was explicitly emphasized.

“Judicial decisions that lead to the closure of active businesses or impose severe punishments on executive managers send troubling signals about legal security and investment stability,” the association warned. It added that such rulings risk discouraging entrepreneurship, reducing long-term investment, and deepening a sense of frustration among economic actors.

According to the association, these developments may also accelerate the outflow of skilled human capital and weaken participation in national economic development.

Key Legal Principles Highlighted

The Tehran E-Commerce Association identified several legal principles that it believes warrant serious reconsideration in this case. These include the requirement that punishment be proportionate to the alleged act, the need to carefully assess both individual and collective consequences of penalties, and the importance of distinguishing between the legal responsibility of individuals and corporate entities.

The association also criticized the imposition of indirect penalties on the company itself as a substitute for individual liability, describing this approach as legally and economically problematic.

Call for Reconsideration and Fair Review

While urging law enforcement authorities to avoid misleading or ambiguous reporting, the association called on judicial bodies to take into account the broader economic and social consequences of rulings affecting innovative businesses. It stressed the role such companies play in employment, national development, and economic resilience.

Citing the significant implications of the verdict for Iran’s startup ecosystem and digital economy, the association formally requested a legal review and renewed examination of the case, grounded in the law, factual realities, and fundamental principles of criminal justice.

The statement concluded by urging authorities to adopt a realistic, unbiased approach free from double standards in similar cases, and to send a clear message of commitment to the rule of law, genuine support for entrepreneurship, human capital, and Iran’s innovation-driven economy.