The Council of Ministers of Saudi Arabia approved the Consumer Protection Law creating the Kingdom’s first unified legal framework for consumer rights.
The Council of Ministers of the Kingdom of Saudi Arabia approved a comprehensive Consumer Protection Law presented by the Ministry of Commerce. The law is described as the Kingdom’s first unified legal framework for consumer rights in products and services,
The law addresses existing shortcomings where consumer protection provisions are scattered across multiple regulations and will replace three existing laws, the 2008 Anti-Commercial Fraud Law, the 2019 E-Commerce Law and the 2002 Commercial Data Law.
The law permits comparative advertising on the condition that it is valid, credible and does not mislead consumers or offend competitors. It prohibits the dissemination of false or misleading opinions and comments on products and services and bans practices that illicitly influence consumer valuations or purchasing decisions, thereby affecting digital commercial content.
There are specific provisions that allocate protection to vulnerable groups that include children, the elderly and people with disabilities. For instance, advertisements directed to children that may harm their lives or safety are prohibited.
The new legislation also provides mechanisms to address unusual price increases, including during crises, pandemics, and other exceptional circumstances, and allows authorities to set prices and impose an upper limit on profit margins.
Under the legislation, consumer protection associations are enabled to file class actions, claim compensation for damages, and play a greater role in the settlement of disputes outside the courts. Violations may be penalised with fines of up to 8 million riyals.
The law will come into force 180 days after its publication in the official gazette.
Saudi Arabia is one of the fastest-growing e-commerce markets in the Middle East and globally. The new consumer law seeks to align the kingdom’s regulatory framework with international standards for online commerce governance. The new Consumer Protection Law replaces the Anti-Commercial Fraud Law, E-Commerce Law, and Commercial Data Law and brings reforms to digital commerce and online governance in Saudia Arabia.
Tricia Puckerin is a legal researcher with over ten years’ experience at the regulator for Trinidad and Tobago’s telecommunications and broadcasting sectors, conducting research on various digital governance issues and the respective legislative frameworks. Tricia’s research experience also includes work with Caribbean Community (CARICOM) organisations on several projects focusing on the area of competition law.