In a significant move to bolster consumer protection, the UAE has implemented new regulations, effective since October 14, 2023, supplementing Federal Law No. 15 of 2020 on Consumer Protection. The updated law addresses various gaps and introduces stringent measures to safeguard consumers from deceptive practices. Suppliers are now prohibited from including clauses in contracts that could potentially harm consumers. Any conditions aiming to exempt providers from their obligations are deemed invalid, allowing consumers to seek compensation for moral or material damages resulting from goods or services. Violators of the consumer protection law may face fines up to Dh2 million and a two-year imprisonment.
Key Aspects of the New Consumer Protection Law:
- Suppliers must accurately disclose relevant information and indicate prices during the display of goods.
- Goods advertising must not be misleading, and consumers must receive invoices stating the price and date of purchase.
- Suppliers are obligated to honor warranties, provide spare parts, replace defective goods, or refund their value in cash.
- Immediate notification to relevant authorities and removal of goods from the market is required if flaws, defects, or hazards that may harm consumers are discovered.
- In case of flaws in products or services, the supplier must offer repair, replacement, or a refund.
- Provisions concerning repair, maintenance, or post-purchase assistance must be included in contractual agreements.
Monopoly Regulations and E-commerce Inclusions: The new law addresses the issue of monopolies, penalizing practices that influence prices with imprisonment up to six months and fines ranging from Dh3,000 to Dh200,000. Unlike the previous law, the updated legislation explores e-commerce in detail and identifies authorized entities in this sector. Additionally, in cases of disputes between suppliers and consumers, the ministry or competent authority can request goods or services to undergo examination by laboratories or testing facilities. The principle of prohibiting goods or implementing administrative detention has been introduced to safeguard consumers from hazardous products.
The comprehensive amendments in the consumer protection law underscore the UAE’s commitment to ensuring a fair marketplace, protecting consumers from fraudulent activities, and fostering transparency in commercial transactions. The initiative aims to elevate consumer confidence and prevent potential harm to the market, aligning with global standards for consumer rights and welfare.