UAE CONSUMER PROTECTION LAW UPDATE: WHAT BUSINESSES NEED TO KNOW
14 December 2023
Suchi goel
The United Arab Emirates (UAE)'s Consumer Protection Law is undergoing a significant revamp with the introduction of Executive Regulation, effective October 14, 2023. These regulations provide further clarification and impose stricter obligations on businesses operating in the UAE.
Dubai: The UAE Cabinet issued Cabinet Decision No. 66/2023- the implementing regulation and amended the Consumer Protection Law, by Federal Decree-Law No. 5/2023.
The purpose of this amendment and implementing regulation is to enhance consumer protection in the UAE and cater to new developments in the digital marketplace.
I.UPDATES POST AMENDMENT
•Broadened Scope of Online Transactions: The revisions expand the application of the law to a wider array of online transactions, encompassing e-commerce, social media shopping, and purchases of digital content.
•Enhanced Safeguards for Online Consumers: Specific measures are introduced to ensure the protection of online consumers, including mandatory disclosures for online merchants, clear policies for returns and refunds, and safeguards against unauthorized online transactions.
•Implementation of an Electronic Grievance System: To expedite the handling of consumer complaints and facilitate the resolution of online disputes, the Consumer Protection Corporation will establish an electronic grievance system.
II.UPDATES POST IMPLEMENTING REGULATION
•Regulation of Influencer Marketing: The amendments establish guidelines for practices related to influencer marketing, requiring transparency and disclosure of sponsored content in order to safeguard consumers against deceptive advertising.
•Personal data protection: To enhance the security of consumer personal information gathered by businesses, stronger measures have been put in place. These measures ensure compliance with data privacy regulations and promote responsible handling of data.
•Penalties & Violations: To discourage businesses from engaging in unfair practices and safeguard consumer rights, the penalties for violating the Consumer Protection Law have been intensified. These enhancements reflect the UAE's dedication to ensuring thorough consumer protection in the digital age, particularly considering the changing dynamics of online transactions and influencer marketing.
III.KEY HIGHLIGHTS OF THE EXECUTIVE REGULATION
•Advertising and Promotions: Suppliers must clearly display prices, avoid misleading advertising, and provide invoices and warranty information in Arabic.
•Promotional Discounts: Consumers are entitled to price differences if promotional discounts are not notified within a week of purchase.
•Invoices: Suppliers must provide detailed invoices, including their commercial registration and tax number.
•Warranties and Spare Parts: Suppliers must clearly outline warranty terms and provide access to spare parts and maintenance documentation.
•Defective Goods: Suppliers must notify consumers of defects, cease trading of defective goods, recall them, and offer replacements or repairs.
•Monopolistic Practices: Suppliers engaging in monopolistic practices face administrative fines, suspension of activities, or license revocation.
•Dubai Corporation for Consumer Protection and Fair Trade: This newly established entity will enforce fair trade practices and combat monopolistic practices in Dubai.
IV.RECOMMENDATIONS FOR BUSINESSES
•Understand the new obligations under the law.
•Review existing practices to ensure compliance.
•Establish processes for handling defective products promptly and in accordance with the law.
•Review contracts with suppliers, distributors, and agents to ensure compliance and apportion risk appropriately.
IN CONCLUSION
The UAE's enhanced focus on consumer protection may signal stricter enforcement of the law, particularly in Dubai. Businesses should proactively comply with the new regulations to avoid penalties and protect their brand reputation. It is advisable for consumers to stay updated regarding their rights outlined in the Consumer Protection Law and promptly report any violations they encounter to the Consumer Protection Corporation.
ALKETBI TOUCH:
ALKETBI team is highly skilled and frequently provides legal assistance specializing in following up with consumer claims and gives its utmost energy to fight unfair practices. If you would like to know more or believe that your rights were violated, Let us know!
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