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UAE Strengthens Consumer Protection Laws with 46 New Offenses and Significant Penalties

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Pavitra Shetty

Published on January 12, 2024, 11:26:19

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Dh1 million fines introduced safeguard consumer rights enhance

Up to Dh1 million in fines were introduced to safeguard consumer rights and enhance business ethics.

The Ministry of Economy in the UAE has unveiled a substantial update to consumer protection laws, introducing 46 new offenses and fines ranging up to Dh1 million.

This landmark amendment, captured in Federal Decree Law No. 5 of 2023, is a pioneering effort to fortify consumer rights and instill ethical practices within businesses.

The comprehensive legislation outlines 43 commitments for goods providers, incorporating integrated regulatory mechanisms to elevate consumer satisfaction and overall well-being.

His Excellency Abdullah Al Saleh, the undersecretary of the Ministry of Economy, detailed the violations, emphasizing fines between Dh100,000 and Dh1 million for offenses such as delayed defect resolution and non-compliance with safety standards. Repeat offenses could lead to license cancellation or business deregistration.

These amendments not only streamline dispute resolution but also prioritize transparency by prohibiting clauses that may harm consumers and preventing monopolistic practices. The Ministry of Economy is actively collaborating with local government entities to establish an efficient complaint management system, fostering confidence in the market.

He further highlighted a crucial provision mandating merchants to price products by unit, ensuring transparency and preventing misleading offers. The updated system encourages consumers to be aware of their rights, providing mechanisms for claiming and following up on grievances.

Furthermore, local authorities have been granted enhanced powers to enforce consumer protection laws effectively, reinforcing their role in receiving and acting on complaints, imposing sanctions, and addressing grievances against punitive measures.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004Follow The Law Reporters on WhatsApp Channels.

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