Since Federal Law No. 15 of 2020 on Consumer Protection (Consumer Protection Law) was published in November 2020, the executive regulations under the Consumer Protection Law have been anticipated by businesses and consumers alike. Consequently, Cabinet Resolution No. (66) of 2023, Concerning the Executive Regulations of Federal Law No. 15 of 2020 Concerning Consumer Protection (Executive Regulations) were published earlier this year and came into effect in October 2023. We set out our thoughts on the key provisions of the Executive Regulations in this article.

Terms harmful to the consumer

The Consumer Protection Law included a prohibition on any terms that would cause harm to consumers. The Executive Regulations have shed some light on what could be construed as harmful terms and provide an illustrative list of 14 harmful terms which range from providers undertaking unilateral amendments/termination of contracts to those diminishing the consumer's right to compensation.

E-commerce

E-commerce providers registered in the UAE (including e-commerce aggregators and marketplaces) would have to provide certain prescribed information for goods and ensure conformity of such goods with applicable laws and regulations, and such e-commerce providers would also be responsible for any defect in the goods sold on their platform. This would entail additional compliances and an increased liability for products for e-commerce providers.

Pricing

A clear and legible display of price is required by the Executive Regulations. Providers are restricted from levying any additional charges on the use of credit cards.

Another interesting aspect is the contingency of an abnormal increase in prices which has also been addressed in the Executive Regulations.

Warranty

A warranty-related document is required to be provided to the consumer. This can be a separate document or form a part of the invoice.

Warranty period for a service would be the longer of a reasonable period or that agreed with the consumer. For goods, the warranty period would be as specified by the manufacturer or commercial agent and would be extended for the time in which the consumer is unable to use the product due to repairs or delays in providing maintenance or spare parts.

The Executive Regulations also contain guidelines for providing maintenance services for goods under warranty. The period for completing any maintenance work for goods under warranty should be specified.

After-sale services

The minister concerned has a right to decide the warranty period, conditions and prices for after-sales services for some goods. The decision would, amongst other things, take into account the nature, importance and relevance of the goods to the consumer.

Monopolistic practices

Anti-competitive practices including discrimination between consumers, regulation of supply and manipulation of prices is prohibited, along with any implied or express agreements which would affect competition.

The Consumer Protection Law and Executive Regulations are expansive in their scope and application. While they will empower consumers and strengthen consumer rights, businesses (including e-commerce providers) should be prepared for the new regime to avoid running afoul of the requirements and incurring penalties.

For more information and/or a confidential discussion on the Consumer Protection Law, please feel free to contact the authors or your usual contact at Dentons.