UAE Consumer Protection laws and Regulations – the past and the present

The UAE has introduced significant revisions to its consumer protection laws, which are noteworthy for several reasons. These updates were effective October 14, 2023, which enhanced Federal Law No. 15 of 2020 On Consumer Protection (“New Consumer Protection Law”) through Cabinet Decision No. 66 of 2023 (“Executive Regulations”), issued on July 3, 2023.

Scope‍ ‍

The new Consumer Protection Law and its Executive Regulations (collectively, “Consumer Laws”) apply to all commodities and services within the UAE, including free zones and e-commerce activities if the provider is registered in the UAE. This marks a significant expansion from the previous 2006 draft law. The Consumer Laws aim to modernize and strengthen consumer rights, particularly in the growing e-commerce sector since the pandemic and increase in the use of technology in our everyday lives.

Data Protection‍ ‍

The Consumer Laws explicitly recognize data protection as a consumer right, imposing obligations on suppliers to protect consumers' privacy and data security, and prohibiting misuse of data for marketing purposes. This aligns with the UAE's federal data protection regime.

‍E-commerce

The Executive Regulations specifically address e-commerce, which was previously not covered under the old consumer protection law. Article 40 outlines detailed obligations for e-commerce suppliers. Businesses involved in online transactions must ensure that:

• Their platforms provide detailed and accurate information about commodities, including names, specifications, ingredients, country of origin, production date, and risks associated with use. This information must be presented in Arabic, in addition to other languages.

• Collecting and handling user data must comply with UAE data protection regulations, requiring explicit consent and a clear privacy policy outlining the use of consumer information.

• Users must provide unique identifiers, such as mobile numbers or email addresses, for access to e-commerce platforms, aiding in traceability and compliance.

‍ Misleading Advertisements

‍ Misleading advertising is defined as any promotional activity based on deceptive information or omissions that could influence consumer decisions under the New Consumer Protection Law. This includes false claims about products, fake prizes, or untrue discounts. The Federal Decree-Law No. 34 of 2021 on Combatting Rumours and Cybercrimes also addresses misleading advertisements, particularly those distributed online.

‍‍The Consumer Laws mandate that all advertisements be clear, accurate, and devoid of ambiguity. Advertisements must not exaggerate claims or use falsified images, and they should avoid causing confusion with other products or services. Offenders may face significant penalties, including fines and imprisonment, underscoring the importance of truthful advertising and protecting consumer rights.

Penalties for non compliance

The Consumer Laws introduces significantly higher penalties, including imprisonment of up to two years and fines ranging from AED 10,000 to AED 2,000,000 for violations such as misleading advertising or failing to repair or replace defective goods or services. This is a substantial increase from the previous maximum fine of AED 1,000,000.

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These consumer protection regulations place the UAE at the forefront of nations with stringent measures to protect consumer rights. Businesses should update their policies and practices to comply with these regulations.

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For more information, contact Minal Sapra at Karawani & Co - minal.sapra@karawanico.com. ‍ ‍‍ ‍