UAE Releases Executive Regulations for Consumer Protection Law

On 14 July, 2023, the UAE authorities published the long-awaited Executive Regulations to Federal Law No. (15) of 2020 on Consumer Protection (“Regulations”). The Regulations are set to come into force within three months of the publication date, which will fall on October 14, 2023. These Regulations provide some much-needed clarity on the scope of the requirements and restrictions outlined under the Consumer Protection Law.

Some of the key features of the new Regulations are highlighted below:

Labelling and invoicing:

The Regulations stipulate the requirements for the information that must be included on the cover or packaging of goods, or the place where they are displayed, and how such information is to be displayed. There are also strict requirements relating to how invoices are to be provided to consumers, and the information that is to be included.

Used, refurbished, and damaged goods:

Suppliers of used, refurbished or defective goods are required to conform to certain specific standards under the new Regulations.

Competition and inflation:

In addition to provisions against anti-competitive practices, the Regulations also now provide for certain emergency actions that may be taken by the relevant authorities in the event of any emergency situations that lead to an abnormal increase in the price of a commodity, including specifying the price, prohibiting export or setting sales quotas for goods.

After-sale services and spare parts:

The new Regulations, unlike the previous Executive Regulations from 2007, do not specify any minimum guarantee periods, but it is stated that a resolution fixing the guarantee periods and conditions, as well as the price of after-sale services for certain goods, may be published by the Ministry. In all cases, however, there is now an express requirement under the Regulations to provide spare parts for the operation and repair of goods sold in certain circumstances.

“Harmful” clauses:

There is now clarity under the Regulations on what contractual terms will be construed as causing harm to the consumer, whether such clauses be found in agreements, invoices or other documents with the client. Primarily these restrictions appear to cover any clauses that grant the suppliers unfair unilateral powers over the consumers or in any way curtail their rights in relation to the goods or services.

e-Commerce:

Lastly, the new Regulations impose certain specific requirements on electronic commerce providers within the UAE and requires certain mandatory disclosures in relation to the goods and services provided through e-commerce platforms.

Given the broad scope of the Consumer Protection Law and the Regulations, businesses in the UAE will need to take cognisance of the requirements imposed by the new Regulations and reassess their position not only in relation to B2C transactions, but also B2B transactions, considering the definition of “Consumer” under the Consumer Protection Law includes both natural and legal persons.

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