News and developments
UAE Implements Revised Penalties and Amendments Under Consumer Protection Law
Federal Law No. 15/2020 regarding Consumer Protection has been further amended through Federal Decree-Law No. 5 of 2023, enhancing various provisions to better safeguard consumer rights.
Key Amendments Under Federal Decree-Law No. 5/2023:
The Supreme Committee for Consumer Protection: The amended Article 5 establishes the formation of the Supreme Committee for Consumer Protection by a Cabinet decision based on the Minister's proposal. This Committee reports to the Ministry, is managed by the Minister, and includes various members whose competencies and rules of procedure are determined by the decision.
Commercial Agencies:
In accordance with the amended Article 16 of the consumer protection law governing commercial agencies, agents or distributors are required to:
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- Implement all warranties provided by the producer or principal regarding the good or service.
- Provide a similar good for the consumer to use without charge if warranty implementation exceeds seven days, until warranties are fulfilled.
- Comply with all obligations of the supplier as stipulated in the Consumer Protection Law if the service or good is provided through the agent.
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- Educating and raising consumer awareness about risks associated with certain goods and services, including e-commerce.
- Publishing decisions and recommendations to increase consumer awareness.
- Monitoring price movements and working to limit increases.
- Promoting competition and combating misleading advertisements and monopoly.
- Receiving consumer complaints and taking necessary measures, with the Implementing Regulation detailing the system for complaint handling and coordination.
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- Notice: An initial warning issued to the supplier.
- Administrative Fine: A monetary penalty, with doubled amounts for repeated violations.
- Temporary Administrative Closure: Closure lasting between 24 hours and 90 days.
- Suspension of Activity: Full or partial suspension for 24 hours to 90 days.
- Revocation of License: Withdrawal of license and removal from the commercial registry.
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- According to Article 8(4) of the new consumer law, if the supplier fails to issue the invoice in the Arabic language, the supplier may face a fine of AED 100,000.
- Under Article 11, failure of the supplier to provide the consumer with the warranty document may result in a fine of AED 100,000.
- Article 20 stipulates that failure to advise both the concerned body and the consumer of potential harms and protection measures may lead to a fine of AED 500,000.
- Article 24(2) states that closing the return file without obtaining permission from the concerned body could result in a fine of AED 1,000,000.
- Failure to provide an alternative commodity in case of a supplier-responsible failure, according to Article 27(2), may lead to a fine of AED 500,000.
- According to Article 28(1), failure to provide a new alternative commodity or its value in case of a recurrent failure during the warranty period may result in a fine of AED 500,000.
- Article 18 outlines that failure to provide periodical maintenance services for the warranted commodity could result in a fine of AED 300,000.
- Article 32(d) specifies that selling commodities or services at prices lower than the cost price to create a monopolistic condition may result in a fine of AED 100,000.
- Under Article 32(a), discrimination between consumers in the sale of commodities or utilization of services could lead to a fine of AED 100,000.
- Article 32(b) mentions that hiding or abstaining from selling a commodity, imposing conditions irrelevant to the original dealing, may result in a fine of AED 200,000.
- According to Article 32(h), purchasing competing commodities or services from the market to control prices may lead to a fine of AED 100,000.