Saudi Arabia introduces first unified consumer protection law with fines up to 8 million riyals
Saudi Arabia has approved its first comprehensive consumer protection law, introducing strict penalties and special measures during crises to safeguard consumers.
Key Takeaways
AIThe Ministry of Commerce has announced that the Consumer Protection Law, approved by the Council of Ministers today, is the first comprehensive legislation to regulate consumer rights for products and services under a unified framework.
The ministry stated that the law will be implemented in coordination with 20 government agencies responsible for consumer protection and market oversight, ensuring protection from harmful, defective, or non-compliant products and services, and guaranteeing the right to compensation for damages.
The law introduces exceptional measures to protect consumers from abnormal price increases during unusual circumstances, crises, and pandemics. These include setting price caps, limiting profit margins, and requiring prior approval from the relevant authority before raising prices, all aimed at market stability and safeguarding consumer interests.
The ministry emphasized that the law targets commercial practices that influence consumer decisions, such as imposing burdensome restrictions, threatening or manipulating choices, or charging extra fees for using certain payment methods.
The law also prohibits misleading practices or attempts to mislead, including providing false information that deceives consumers, concealing relevant information, presenting it unclearly, or offering counterfeit products with the intent to supply them to consumers.
The law permits comparative advertising between economic operators, allowing consumers to fairly and transparently compare products and services. It also strengthens protection for consumers contracting for products and services outside retail stores by subjecting these transactions to guarantees similar to those in e-commerce.
The ministry explained that the law includes special provisions to protect vulnerable groups, such as children, the elderly, and persons with disabilities. It also bans advertisements directed at children that may harm their lives, health, or safety.
Violators face penalties including fines of up to 8 million riyals (SAR), imprisonment for up to two years, suspension of business activities, confiscation of non-compliant products, and publication of consumer warnings.
The law also streamlines dispute resolution mechanisms through simplified procedures for minor claims, enhancing the speed and accessibility of justice.
The law will come into effect 180 days after its publication in the official gazette, replacing three existing regulations: the Anti-Commercial Fraud Law, the E-Commerce Law, and the Commercial Data Law.