In a significant move to bolster consumer rights and protection, the United Arab Emirates (UAE) has implemented stringent measures under the new Consumer Protection Law, which took effect on October 14, 2023. Federal Law No. 15 of 2020 introduces crucial provisions and executive regulations aimed at ensuring fair practices and safeguarding the interests of consumers.
Legal Safeguards and Penalties
The Consumer Protection Law addresses various gaps and issues in the previous legislation, providing consumers with a robust framework to seek compensation for moral or material damages resulting from using goods or services. Violators of the new law may face severe consequences, including fines of up to Dh2 million and a two-year imprisonment.
Legal experts from Galadari Advocates and Legal Consultants Hassan Tawakalna and Ismail Ezzat emphasize that the new law prohibits suppliers from incorporating clauses that seek to exempt them from their obligations. Any such attempt is deemed invalid, and penalties may be imposed independently or concurrently, with the possibility of doubling them for repeated violations.
Critical Aspects of the Consumer Protection Law
Transparent Information Disclosure
One of the critical provisions mandates that suppliers and commercial agents must accurately disclose all relevant information and indicate the price of goods during display. Misleading advertising is prohibited, and consumers must be provided with an invoice stating the price and date of purchase.
Warranty and After-Sale Services
Suppliers must honor warranties, provide spare parts and maintenance services, replace defective goods, or refund their value in cash. In case of product flaws, defects, or hazards that may harm consumers, suppliers must immediately notify the relevant authority and remove the goods from the market.
Monopoly Regulations
Unlike the previous law, the new legislation addresses the issue of monopolies head-on. Article 19 of the Consumer Protection Law outlines penalties for monopolistic practices, including imprisonment for up to six months and fines ranging from Dh3,000 to Dh200,000. These penalties escalate for repeated violations.
E-commerce Inclusions
The new law provides detailed insights into e-commerce, identifying authorized entities in this field. This is a significant enhancement from the old law of 2006, which did not explore e-commerce or recognize authorized entities in this sector.
Involvement of Experts and Laboratories
Article 23 of the Consumer Protection Law explicitly addresses the involvement of experts and laboratories in disputes between suppliers and consumers. In cases of public interest or disputes, the ministry or competent authority can request that goods or services undergo examination by laboratories or testing facilities. The supplier is responsible for examination costs if the goods are deemed unsuitable.
Administrative Detention and Goods Prohibition
The updated law introduces the principle of prohibiting goods or implementing administrative detention. According to Article 27, the minister or their representative, in collaboration with the competent authority, has the authority to issue a decision prohibiting importation, administratively detaining, or withdrawing goods from the market if they are found to be harmful or pose a risk to consumers.
Hassan Tawakalna and Ismail Ezzat of Galadari Advocates and Legal Consultants emphasize that many of these penalties were not outlined in the old law. The updated legislation emphasizes the commitment to safeguard consumers against fraudulent activities or deceitful practices that may hinder their purchasing or result in other forms of harm, preventing potential damage to the consumer market.
Conclusion
Implementing the new Consumer Protection Law in the UAE marks a significant step towards enhancing consumer rights and ensuring fair business practices. With its comprehensive provisions and stringent penalties, the law aims to create a transparent and secure marketplace, holding suppliers accountable for the quality and safety of their products and services. As consumers gain more excellent protection, the UAE establishes itself as a leader in prioritizing the well-being of its citizens.
