Dh100,000 Fine for Selling Defective Cars; Buyers Can Take Legal Action

In the UAE, sellers are required by law to provide accurate descriptions of the products they sell, including second-hand items. Misleading advertisements or withholding critical information about a product's condition is prohibited under Federal Law No. 15 of 2020 on Consumer Protection, as amended by Federal Decree-Law No. 5 of 2023, and its associated executive regulations.

Prohibition of Misleading Descriptions

Article 17 of the UAE Consumer Law explicitly prohibits sellers, advertisers, and suppliers from providing false or misleading information about a product or service. This includes misrepresenting key details such as the item's nature, composition, or condition.

Article 8 of Cabinet Decision No. 66 of 2023 further defines deceptive advertising, highlighting claims that create false impressions about:

1. The condition, composition, or substantial description of the product.

2. The country of origin, manufacturing process, or certification marks.

3. Warranty terms, after-sale service, or payment options.

Specific Obligations for Second-hand Goods

When selling second-hand, renovated, or defective items, sellers must clearly disclose the condition of the product. According to Article 7 of Cabinet Decision No. 66 of 2023, this involves:

• Accurately advertising the condition of the product.

• Including the product’s condition in the sales contract or invoice to ensure transparency.

Warranty Responsibilities

If a warranty is provided for the product, it must meet the standards outlined in Articles 12 and 13 of Cabinet Decision No. 66 of 2023. Sellers are obligated to honor warranty terms and provide necessary repairs or compensation for defects covered during the warranty period.

Buyers’ Right to Compensation

Under Article 24 (1) of the UAE Consumer Law, buyers are entitled to compensation for any material or personal damages caused by defective products. Any agreement attempting to waive this right is invalid under UAE law.

Penalties for Violating Consumer Rights

The UAE imposes strict penalties on sellers who fail to comply with consumer protection laws. According to Addendum No. 2 of Cabinet Decision No. 66 of 2023, fines of up to Dh100,000 can be levied against sellers offering defective or misleadingly described goods.

How to File a Complaint

Buyers who discover defects in purchased products can take the following steps:

1. Contact the Competent Authority: File a complaint with the UAE Ministry of Economy or the relevant local authority in the emirate.

2. Provide Supporting Documents: Submit the sales contract, warranty (if applicable), and evidence of the defect.

3. Pursue Legal Action: If required, escalate the case through the UAE legal system to claim damages.

Conclusion

UAE consumer protection laws are designed to safeguard buyers and ensure fairness in transactions, particularly for secondhand goods. If you have purchased a defective car, you can file a complaint against the seller for failing to disclose its condition. Buyers with a valid warranty may also seek repairs or compensation during the warranty period. With stringent penalties in place for violators, the UAE provides robust legal mechanisms to address grievances and protect consumers.

 

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