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Fine of up to 1 million dirhams: UAE introduces 46 new crimes into consumer protection law – News


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Published: Thursday, January 11, 2024, 9:18 p.m.

Last update: Thursday, January 11, 2024, 10:33 p.m.

The UAE Ministry of Economy announced on Thursday the introduction of 46 new violations, including fines of up to Dh1 million, in Federal Decree Law No. 5 of 2023 to better protect consumer rights.

This is the first time that the UAE has introduced such a large number of crimes in one amendment.

The law also imposed more than 43 commitments on suppliers of goods and introduced integrated regulatory mechanisms and procedures to enable sound business practices and improve consumer satisfaction, happiness and well-being.

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Abdullah Al Saleh, Undersecretary of the Ministry of Economy, revealed that a total of 46 types of violations have been introduced, ranging from a fine of 100,000 to 1 million dirhams.

“For example, a fine of Dh250,000 will be imposed on the supplier if it fails to repair, maintain, provide after-sales services, return products or refund within a certain period after a defect is discovered. A fine of Dh200,000 is imposed on the supplier in case of non-compliance with health and safety specifications, standards and conditions,” he stated.

He explained that some sanctions could lead to the cancellation of the license or the cancellation of the company’s registration in case of repeat offenses. These sanctions also help reduce the consumer protection litigation process, as they cover all types of violations.

The new regulations speed up the resolution of disputes, which prevents the consumer from resorting to the courts in all cases. It also improves transparency and prohibits the inclusion of any clause that may harm the consumer; and prohibits monopolistic practices since there are around 14 examples of conditions or provisions that the supplier is prohibited from including in contract forms, invoices or other documents when contracting with consumers.

“The Ministry of Economy is currently collaborating with local government entities to develop a comprehensive system to efficiently manage and promptly address complaints. This initiative aims to increase consumer confidence and safeguard their rights in the country’s markets,” he added.

Explaining the new regulations, Al Saleh said that a new provision has been inserted according to which merchants will not only put a selling price on the goods but will also set the price of the products per unit.

“This ensures the highest levels of transparency in pricing, thus avoiding misleading offers. “It also allows consumers to choose from a variety of alternative products and compare prices effortlessly.”


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