New Saudi consumer protection law bans unfair trade practices
Saudi Arabia's new consumer protection law prohibits unfair commercial practices, misleading ads, and exploitation of consumers' ignorance or circumstances.
Key Takeaways
AISaudi Arabia's new consumer protection law prohibits unfair commercial practices that could negatively affect consumer behavior, decision-making when purchasing products or services, or harm their legal rights.
The law bans advertising unavailable products or services, promoting limited-time or limited-quantity offers without maintaining a reasonable stock to meet expected demand, and deliberately reducing product efficiency or lifespan to increase consumption.
It also forbids using media content for promotion without clear disclosure of its advertising nature, using abusive or coercive language or behavior towards consumers, exploiting consumers' ignorance or circumstances that may affect their judgment, threatening unlawful actions, or imposing unjustified restrictions when consumers exercise their legal rights.
The law further prohibits misleading statements in business documents or advertisements, requiring consumers to pay for returning or storing products or services they did not request, imposing extra fees for specific payment methods, publishing fake reviews or distorting consumer opinions for promotional purposes, and unjustified discrimination based on race, gender, or nationality.
Additionally, the law bans businesses from refusing to deal with consumers without legitimate reason, demanding new fees or costs not clearly stated in the contract or without a defined calculation method, along with any other unfair commercial practices specified by the regulations.
