Important amendments to the Consumer Protection Law in UAE
In a landmark move towards fortifying consumer rights, the United Arab Emirates (UAE) has recently enacted the Consumer Protection Law No. 5 of 2023, amending certain provisions of the Federal Law No. 15 of 2020. This new legislation, closely examined by Dubai Law Firm experts, is a testament to the UAE’s commitment to fostering a fair and transparent marketplace, where consumers can confidently engage in economic activities with the assurance that their rights are safeguarded.
The new Consumer Protection Law introduces several critical amendments to its predecessor, Federal Law No. 15 of 2020. Here are some noteworthy changes:
The Ministry of Economy has unveiled a roster of administrative penalties and monetary fines pertaining to breaches of consumer protection, encompassing 46 financial violations ranging from AED 100,000 to AED one million. These adjustments are in line with the amendments introduced in the new Consumer Protection Law No. 5 of 2023, amending certain provisions of Federal Law No. 15 of 2020.
As disclosed in a media briefing by the Ministry of Economy in Abu Dhabi last Thursday, the sanctions list features a specific penalty of AED 250,000 for suppliers failing to adhere to contracts related to repair, maintenance, after-sales service, or obligations to return, replace, or refund the price of a commodity within a stipulated time frame following the identification of a defect or malfunction. Best Lawyers Sharjah have noted that the list of sanctions also incorporates a penalty of AED 200,000 imposed on suppliers who fail to ensure the compliance of their products or services with standard specifications, conditions, and controls pertaining to health and safety.
Mr. Abdul Saleh, the Undersecretary of the Ministry of Economy, highlighted in a media briefing that the imposition of these administrative sanctions considers a phased approach, commencing with warnings and escalating to financial penalties. In some cases, the measures may extend to the revocation of licenses and removal from the commercial register if the violation persists without correction. This approach aligns with the principles upheld by Consumer Rights Dubai advocates.
One of the notable changes in the recent consumer protection law, particularly in Article 5, stipulates the establishment of a committee named the “Supreme Committee for Consumer Protection.” This committee is formed through a decision by the Council of Ministers and is initiated based on a proposal from the Minister of Economy. Affiliated with the Ministry of Economy, this committee is overseen by the Minister, with membership comprising several appointed individuals.
Concerning Article 22, which addresses the Ministry’s responsibility for safeguarding consumer rights, the revision, as outlined by the Undersecretary of the Ministry of Economy, incorporates competent authorities into the article’s provisions. This involves restructuring the process for receiving consumer complaints and underscoring the involvement of local authorities in the imposition of administrative penalties and financial fines on the service provider.
With respect to Article 35 concerning grievances, “Competent local authorities have been included to handle complaints against decisions and actions made by the head of the competent authority.”
Conclusion:
The enactment of Consumer Protection Law No. 5 of 2023 reflects the UAE’s commitment to fostering a fair and secure marketplace. By strengthening consumer rights, enhancing product liability measures, and addressing emerging challenges in the digital economy, the UAE aims to create an environment where consumers can thrive with confidence. As businesses adapt to the new regulations, the collective result is a more transparent, accountable, and consumer-friendly economic landscape in the United Arab Emirates.
Written by – Senior Legal Assistant Shajahan Hameed
