UAE imposes strict penalties for 46 consumer protection violations

The Ministry of Economy in the UAE recently disclosed a comprehensive list of 46 consumer protection violations, accompanied by substantial penalties ranging from Dh 100,000 to Dh 1 million. This announcement came during a detailed briefing session where the Ministry presented key developments in legislation and policies concerning the enhancement of the UAE’s consumer protection system.

These developments involve amendments to Federal Law No. 15 of 2020 on consumer protection, specifically introduced through Federal Decree Law No. 5 of 2023, and its executive regulation issued by Cabinet Decision No. 66 of 2023. The unveiling of these violations occurred in the presence of Abdullah Al Saleh, Under-Secretary of the Ministry of Economy, who emphasized the significant advancements in the country’s consumer protection framework.

The newly enacted Consumer Protection Law and its executive regulation mark a pivotal milestone in the government’s commitment to fortifying consumer protection in line with global best practices. It unfolds in two dimensions: first, empowering local authorities with enhanced legislative powers to enforce consumer protection laws more effectively, and second, reinforcing deterrent measures to ensure that merchants uphold their legal obligations.

In this context, the obligations of merchants during the sale of commodities or provision of services have been thoroughly elaborated and expanded to encompass nearly 43 specific obligations. This approach aligns with the Ministry’s strategic objectives to promote consumer rights and welfare, fostering an environment that is conducive to secure and confident purchasing and service experiences.

The introduction of these obligations represents a qualitative shift in legislation, ensuring comprehensive support for consumer protection and the guarantee of all consumer rights in the country. The amendments also contribute to elevating the quality standards of services and commodities, aligning with the national vision of improving the quality of life for citizens and residents by the year 2031.

The Undersecretary emphasized the visionary directives of the UAE leadership, acknowledging the country’s cutting-edge legal framework dedicated to safeguarding consumer rights. This framework has evolved through consecutive legislative advancements, establishing a robust consumer protection system.

Ongoing collaborative efforts between the Ministry of Economy and public-private partners are focused on enhancing compliance with national consumer protection regulations, promoting ethical business conduct, and ensuring top-notch standards in service and product delivery.

The Ministry is actively working with local government entities to develop an efficient system for managing and promptly addressing consumer complaints. This initiative is designed to bolster consumer confidence and safeguard their rights in the country’s markets.

The newly introduced Consumer Protection Law No. 5 of 2023 includes significant amendments to specific provisions of Federal Law No. 15 of 2020. These changes amplify the role of local authorities, strengthen law enforcement, and introduce flexible mechanisms to advance government policies for robust consumer protection at both federal and local levels.

Notably, the law details the supplier’s obligations concerning necessary spare parts and goods repair, tailoring them to the specific demands of customers. Mechanisms for regulating the examination of goods at laboratories have been specified to address disputes between customers and suppliers over the quality of goods. This enhancement in deterrent measures reinforces the supplier’s obligation and protects consumer rights. Additionally, a seven to 30-day window has been established to ensure the supplier’s commitment to providing spare parts or substitute goods in the presence of defects.

Al Saleh further outlined the detailed list of administrative penalties and fines for consumer protection violations, totaling 46 types. These fines range from Dh 100,000 to Dh 1 million, addressing various violations such as failure to repair, maintain, provide after-sales services, or comply with safety and health specifications. The penalties are designed to cover a spectrum of violations, and depending on their severity, they may lead to warnings, fines, or even license cancellation or deregistration in cases of repeated offenses.

One noteworthy provision in the new law emphasizes that merchants must price products by unit rather than solely indicating a selling price. This ensures transparency in pricing, eliminates misleading offers, and enables consumers to make informed choices by easily comparing prices among alternative goods.

The comprehensive measures introduced by the UAE’s Ministry of Economy represent a significant stride towards fortifying consumer protection, promoting transparency, and ensuring that merchants adhere to their legal obligations. The multifaceted approach, encompassing legislative amendments, enhanced regulatory oversight, and collaborative efforts, underscores the government’s commitment to fostering a consumer-friendly environment in the country