The UAE has established a strong consumer protection framework to protect the rights of consumers in all transactions. The recent amendment, Federal Decree-Law No. 5 of 2023, updates Federal Law No. 15 of 2020 on Consumer Protection, introducing more strict measures to protect consumer rights.
Here, we will explore the scope of the Consumer Protection Law in UAE, consumer rights, supplier obligations and the methods for law enforcement.
- Consumer Rights
- Supplier Obligations
- Penalties for Non-Compliance
- E-Commerce Requirements
- Prohibited Practices
- Enforcement and Consumer Protection Authorities
- FAQs
Scope of the UAE Consumer Protection Law
The UAE Consumer Protection Law is comprehensive, applying to all goods and services offered within the country. Also, it applies to goods sold through eCommerce platforms registered in the UAE. The law covers the activities of suppliers, advertisers and commercial agents across the mainland and free zones in Sharjah and other emirates.
However, the law does not apply to eCommerce transactions between UAE consumers and businesses registered outside the UAE. This way, local transactions are strictly regulated while keeping in check the limitations of international jurisdiction. Also, you can learn how to start a real estate business in the UAE.
Key Consumer Rights Under the Law
The Protection Law for Consumers in UAE guarantees key rights for consumers:
1. Right to a Safe Environment
Consumers have the right to a safe, appropriate environment when purchasing goods or receiving services, prioritising their health and well-being.
2. Right to Correct Information
Consumers have the right to accurate and reliable information about the goods and services they purchase, use, or consume. This is important for making informed decisions.
3. Right to Be Informed
Consumers must be informed of their rights and obligations regarding the goods or services they acquire, promoting transparency in transactions.
4. Right to Choose
They have the freedom to select the most suitable product or service available in the market.
5. Right to Fair Compensation
If consumers suffer damages due to defective goods or inadequate services, they are entitled to fair compensation, holding suppliers accountable. This is a prime example of consumer protection UAE in action.
6. Right to Privacy and Data Protection
Suppliers must protect consumers’ privacy and data security. They are prohibited from using consumer information for marketing purposes without consent.
Supplier Obligations Under the Law
Suppliers have several obligations under the UAE Consumer Protection Law, designed to protect consumer rights and ensure fair business practices:
1. Transparency
Suppliers must provide consumers with a detailed, dated invoice that has essential information. These include the trade name, address, type and price of goods or services.
2. Respect for Religious Values and Traditions
Suppliers must respect consumers’ religious values, customs, and traditions when offering goods or services.
3. Prompt Dispute Resolution
Suppliers are required to resolve consumer disputes promptly and fairly, ensuring a clear and efficient process for addressing issues.
4. Warranty Obligations
Suppliers must honor warranties, provide necessary maintenance, and replace or refund defective products within a specified period.
5. Prohibition of Misleading Advertising
As per consumer protection laws, suppliers and advertisers are prohibited from making false claims about goods or services. Misleading advertisements, including incorrect descriptions or pricing, are subject to severe penalties, ensuring that consumers are not deceived.
6. Fair Pricing
Suppliers must display clear and accurate prices. In a crisis or unusual market conditions, the Minister of Economy may set fixed prices for essential goods to protect consumers from price gouging.
7. Product Safety
Every supplier must ensure that goods and services comply with UAE’s standard specifications. They should ensure that their service does not pose a threat to public health or safety, protecting consumers from harm.
Penalties for Non-Compliance
Strict penalties are imposed on suppliers who fail to comply with the UAE Consumer Protection Law. Violations, such as the following:
- Providing misleading information
- Failing to honour warranties
- Engaging in commercial fraud
Additionally, any contract terms harmful to consumers or exempting suppliers from their legal obligations are considered null and void. These penalties emphasise the consequences of unfair trade practices and the importance of consumer protection law.
E-Commerce Requirements
eCommerce businesses in the UAE have specific obligations under the consumer protection law. These businesses must provide clear details about their licensing entity, product or service information, specifications, contract terms, payment details and warranty information. This transparency is crucial for building consumer trust in online transactions.
Prohibited Practices
The law strictly prohibits practices that would harm consumers. This includes nullifying any contract terms that would harm the consumer or exempt suppliers from their obligations.
Suppliers who fail to provide clear labelling, advertise misleading prices، or neglect to repair or replace defective products without charge may face severe penalties. In severe cases, this may result in imprisonment and substantial fines.
Enforcement and Consumer Protection Authorities
The Ministry of Economy oversees the enforcement of consumer protection laws in the UAE. Each emirate in the UAE has a Department of Economic Development (DED) that plays a vital role in enforcing consumer protection laws locally. So, when you obtain a trade licence in Dubai, you are obliged to follow all the laws and regulations.
The DEDs in Abu Dhabi, Dubai, Sharjah, and other Emirates work with the Ministry of Economy to protect consumer rights. They are responsible for:
- Implementing and overseeing the Consumer Protection Business Law: Ensuring local businesses adhere to the regulations and that consumer rights are upheld.
- Addressing consumer complaints: Providing a local point of contact for consumers to resolve disputes with suppliers efficiently and fairly.
- Taking action against violations: Enforcing penalties against businesses that violate consumer protection laws, maintaining a fair and transparent marketplace.
Emirates Society for Consumer Protection
The Emirates Society for Consumer Protection is a non-profit organisation affiliated with the Ministry of Community Development. It plays a crucial role in protecting consumer rights by:
- Receiving and verifying consumer complaints.
- Liaising with relevant entities to address consumer issues.
- Protecting against commercial malpractice.
- Raising awareness and promoting responsible consumption.
FAQs
The UAE Consumer Protection Law grants consumers several rights. These include the right to a safe environment, accurate information, fair compensation for damages, and privacy protection.
A Consumer Protection Law protects buyers from unfair practices and makes sure the products/services are safe and reliable. It also provides legal recourse for consumers facing issues with the seller, aiming to maintain fairness in the marketplace.
You can file a consumer complaint in the UAE with the Ministry of Economy through their hotline at 800 1222. You can also reach out to the Department of Economic Development (DED) in the respective Emirates for assistance.
The UAE’s Consumer Protection Law is comprehensive, aiming to maintain a fair and transparent marketplace. By enforcing strict regulations, it provides a safe and equitable environment for all the residents and visitors of the UAE.
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