Saudi Ministry of Commerce suspends car dealership, imposes SAR 8 million fine for consumer rights violations

The Ministry of Commerce has announced the suspension of a car dealership, barring it from importing vehicles and imposing a fine of 8.12 million riyals (SAR) for failing to uphold consumer rights, violating the Commercial Agencies Law and its executive regulations, as well as rules on maintenance, spare parts availability, manufacturing quality guarantees, and after-sales services.

The decision follows confirmation of 175 violations by the dealership, including failure to provide spare parts and not supplying customers with replacement vehicles during maintenance periods.

A specialized team from the ministry investigated the recorded violations, communicated with affected consumers, and ensured they received due compensation and alternative vehicles.

Measures also included summoning the manufacturer and monitoring its compliance with the ministry's corrective recommendations, overseeing recall campaigns, and initiating the transfer of the brand to a new agent after verifying its readiness and ability to provide high-standard services to consumers.

The ministry stressed it will not hesitate to enforce legal penalties against any agent failing to meet consumer obligations, including public disclosure in accordance with regulations and based on a final judicial decision.