UAE Warns of Heavy Fines and Long Jail Term For Violating Consumer Protection Law

In the UAE, suppliers are now prohibited from including clauses in contracts that could harm consumers, thanks to a new consumer protection law effective since October. Consumers can seek compensation for damages resulting from goods or services. Violating the law can lead to fines of up to Dh2 million and a 2-year imprisonment.

Legal experts praise the new law for addressing gaps in the previous one, with provisions outlined in Federal Law No. 15 of 2020 on Consumer Protection. Executive regulations, effective from October 14, 2023, complement this law.

Galadari Advocates and Legal Consultants highlight that any attempt to exempt providers from their obligations in contracts is considered invalid. Penalties may be doubled for repeated violations.

Key aspects of the law include accurate disclosure of information by suppliers, clear indication of goods’ prices, non-misleading advertising, and provision of invoices. Suppliers must honor warranties, provide spare parts, replace defective goods, or refund their value. Immediate notification to authorities is required if flaws, defects, or hazards in products are discovered. Repair, replacement, or refund must be offered in case of product or service flaws. Contractual agreements must include provisions for repair, maintenance, or post-purchase assistance.

The law also addresses monopolies, imposing penalties for concealing goods, declining sales, or denying services to influence prices. For monopolistic practices, imprisonment of up to six months and fines ranging from Dh3,000 to Dh200,000 can be imposed.

E-commerce is now explicitly covered, defining entities permitted to operate in this sector. The updated law also introduces the involvement of experts and laboratories in disputes between suppliers and consumers. The ministry or competent authority can request goods or services to undergo examination, and the supplier is responsible for examination costs if the goods are deemed unsuitable.

The principle of prohibiting goods or implementing administrative detention is introduced to safeguard consumers. The minister, in collaboration with the competent authority, can issue a decision prohibiting importation, administratively detaining, or withdrawing goods from the market if they pose a risk. Such provisions were absent in the earlier law.

The updated legislation aims to safeguard consumers against fraudulent activities and deceitful practices. It emphasizes a commitment to prevent potential harm in the consumer market, reflecting a comprehensive effort to protect consumers from hazardous products and fraudulent practices.