UAE Warns of Strict Penalties and Prolonged Prison for Violating Consumer Protection Laws

In the UAE, a recent consumer protection law, in effect since October, has prohibited suppliers from including clauses in contracts that may harm consumers. The law allows consumers to seek compensation for damages resulting from goods or services, with violators facing fines of up to Dh2 million and a 2-year imprisonment.

Legal experts commend the new law for addressing gaps in the previous legislation, specifically Federal Law No. 15 of 2020 on Consumer Protection. Executive regulations, effective from October 14, 2023, complement the law.

Galadari Advocates and Legal Consultants note that any attempt to exempt providers from their contractual obligations is considered invalid, and penalties may be doubled for repeated violations.

Key elements of the law include accurate information disclosure by suppliers, transparent indication of goods’ prices, non-misleading advertising, and the provision of invoices. Suppliers are obligated to honor warranties, provide spare parts, replace defective goods, or refund their value. Immediate notification to authorities is mandatory 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, refusing sales, or denying services to influence prices. Monopolistic practices may result in imprisonment of up to six months and fines ranging from Dh3,000 to Dh200,000.

E-commerce is explicitly covered, defining entities permitted to operate in this sector. The updated law 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, with the supplier bearing 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 protect consumers against fraudulent activities and deceitful practices. It underscores a commitment to prevent potential harm in the consumer market, reflecting a comprehensive effort to shield consumers from hazardous products and fraudulent practices.