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We are excited to share the latest edition of the Law Update, beautifully and appropriately titled “Sustainable Horizons: The Saudi Arabian Vision.” Giving special honor to the Kingdom’s 2030 vision, this update focuses on a collection of both informative and inspiring articles.
For those in construction, you can learn about how the tendering environment impacts risk-pricing for contractors, the updates on the legal framework of the construction industry and how contractors can protect themselves against financial difficulties.
There is good news too from the kingdom’s banking sector, from which the practice of “Open Banking” is being pushed for! But what is open banking? We’re answering that too.
Also . . . Are there any women trail blazers in Saudi Arabia you can name? We’ll help you with that. We cover how the Middle East has been making strides in empowering women in the entrepreneurial space,most notably in STEM fields.Read the full edition
The new Federal Law No. 15 of 2020 on Consumer Protection (the “new Consumer Protection Law”) issued on 10 November 2020 repeals the previous Federal Law No. 24 of 2006.
The new Consumer Protection Law covers all goods and services within the UAE, including in free zones, and all related operations carried out by suppliers, advertisers or trade agents, including electronic commerce transactions if the supplier is so registered in the UAE.
The key provisions are summarised here:
The introduction of privacy and data security for consumers and the unauthorised use of consumers’ data (Article 4(5)). Suppliers and businesses now have an obligation to safeguard their consumers’ data, avoid using consumer data and information for marketing and promotion, and protect consumers’ religious values, customs and traditions when providing a commodity or receiving any service.
All e-commerce providers registered within the UAE shall be required to provide the consumers and competent authorities with their names, legal status, address, licensing authorities and sufficient information in Arabic on the services they provide, specifications, terms of contracting, payment and warranty terms (Article 25). These obligations do not apply to e-commerce providers based outside the UAE. Information made available to consumers, data, advertisements, contracts and invoices must be in Arabic, and other languages may also be used alongside Arabic at the supplier’s discretion (Article 8).
The new Consumer Protection Law stipulates more robust penalties for suppliers. Suppliers who falsely advertise products or services can face imprisonment of up to two years and a fine not exceeding AED 2 Million. This penalty will also apply to suppliers who do not remedy a defective product by repairing or replacing the products or services without charge. Penalties will be doubled in the event of recurrence.
It is intended that stricter penalties will offer further protection to consumers and ensure suppliers compliance with these new obligations.
Companies have a one year transition period to comply the provisions of new law (Article 33) from the date it came into force. Such a period may be extended by a resolution from the Cabinet.
The Cabinet will issue the Executive Regulation of this law upon a proposal from the Minister within six months from the date the new law was published in the Gazette, on 15th November 2020. The Executive Regulation, therefore, is expected to come into force by 15th May 2021.
We will, of course, provide a further update upon the issuance of the Executive Regulation.
Partner, Head of Regulatory, Head of Healthcarea.firstname.lastname@example.org
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