The Ministry of Economy of the United Arab Emirates unveiled the establishment of a new set of 46 violations, which may lead fine raising up to Dh1 million. The rules are introduced to protect the individual rights of the consumers according to the Federal Decree Law No. 5 of 2023.

This is the very first time in history that the United Arab Emirates has established such a huge list of offenses in order to betterment.

The law equally has been placed more than 43 commitments on the providers of goods and established unified governmental mechanisms and systems to authorize sound business implementations and additionally for enhancing the satisfaction, well-being, and happiness of the consumers.

The  Undersecretary of the Ministry of Economy in the United Arab Emirates, Abdullah Al Saleh unveiled that there will be a complete number of 46 violation types have been implemented, which are ranging from a fine amount of Dh 100,000 to Dh1 million.

Abdullah Al Saleh said, “For example, a fine of Dh 250,000 will be imposed on the supplier if they fail to repair, maintain, provide after-sales services, return goods, or refund within a certain time limit after a defect is discovered. A fine of Dh 200,000 is imposed on the supplier in the event of failure to comply with standard specifications, rules, and conditions of safety and health.” 

He further elaborated that disobedience to the law, and in the case of continuous offense can lead to bigger penalties which may include cancellation of the license, and deregistering the business. The listed penalties also come up with contributions to cut down the legal processes for the protection of consumers, as the implemented laws will protect almost every type of violation.

The new regulations will accelerate variance resolution. As a result, it will protect the consumers from reaching to the Judiciary for assistance in every small case. It will enhance the transparency and interdict the involvement of any condition that could be a reason to harm the consumers and prohibit controlling activities. Since over 14 samples of provisions and conditions that the providers are forbidden from including in forms for contracts, invoices, and other documents in contracting the consumers.

He elaborated, “The Ministry of Economy is currently collaborating with local government entities to develop a comprehensive system for efficiently managing and promptly addressing complaints. This initiative aims to boost consumer confidence and safeguard their rights in the country’s markets. This ensures the highest levels of transparency in setting prices, thus avoiding any misleading offers. It also enables consumers to choose from a range of alternative goods, and compare prices effortlessly.”

“The consumer should learn about mechanisms for claiming rights, as well as submitting claims and following it up. The ministry also urges sellers, whether a manufacturer, merchant, distributor or a service provider, to consider the consumers’ rights and to be fully aware of their obligations towards them,” Abdullah Al Saleh added.

While explaining the new rules and regulations, Abdullah Al Saleh talked about the new provision that has been included, maintaining which merchants must have to put the selling price of the products including the price of the same products by unit at the same time.

The officials urged all the consumers to stay aware completely of their legal rights that are specially mentioned in the new lawsuit.

 Abdullah Al Saleh spoke about the part of the local authorities that have been given strength in the laws specially enforced for the protection of the consumers more efficiently by assigning them most of the legal powers necessary to successfully this process. The authorities have been granted ingrained legal abilities such as receiving, acting, and following up on the received complaints from the consumers, imposing administrative permissions, and mentioned fines for the acts are performed with violation by going against the law and the implementing rules and regulations of the fault, equally taking action on the submitted grievances against the decisions to take measurable steps and punitive actions.

The newly launched sections of regulations are a continuous effort of the United Arab Emirates to enhance the protection of consumers, according to Hani Naja, who is a partner in corporate and commercial at  Baker & McKenzie.