Consumer Protection In a significant legal shift effective October, suppliers in the UAE are now expressly prohibited from including clauses in contracts that may harm consumers. The consumer protection law, enacted in November 2020 under Federal Law No. 15 of 2020, gained additional enforcement through executive regulations as of October 14, 2023.
Penalties for Violations
Violations of the new consumer protection law carry substantial consequences. Individuals found in breach may face fines of up to Dh2 million and imprisonment for a period of two years.
Insights from Legal Experts
Legal experts, including senior counsel Hassan Tawakalna and Paralegal Ismail Ezzat from Galadari Advocates and Legal Consultants, highlight the significance of the new provisions. Conditions in contracts, invoices, or similar documents aiming to exempt providers from their obligations are now deemed invalid, reinforcing consumer rights.
Key Provisions of the Consumer Protection Law: Consumer Protection
The updated legislation introduces critical provisions to protect consumers:
- Disclosure of relevant information and clear indication of goods’ prices during display.
- Prevention of misleading goods advertising; consumers must receive an invoice stating the price and purchase date.
- Honoring warranties, providing spare parts, and offering maintenance services or cash refunds for defective goods.
- Immediate notification and removal of goods from the market in case of flaws, defects, or hazards.
- Providing repair, replacement, or refunds in the event of product or service flaws.
- Inclusion of provisions for repair, maintenance, or post-purchase assistance in contractual agreements.
Addressing Gaps in Previous Legislation
The new law addresses significant gaps in the previous legislation, including issues related to monopolies, e-commerce, involvement of experts and laboratories in disputes, and the prohibition or administrative detention of goods posing a risk to consumers.
Emphasis on Consumer Safeguards
Legal experts emphasize that the updated legislation is a commitment to safeguard consumers against fraudulent activities, deceitful practices, and potential harm to the consumer market. The inclusion of these penalties underscores the dedication to consumer protection in the UAE.
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