Suppliers prohibited from incorporating clauses in contracts that could harm consumers later
Suppliers in the UAE have been prohibited from incorporating any clauses in contracts that could harm consumers later. As per provisions of a consumer protection law that went into effect in October, consumers can seek compensation for any moral or material damages from using goods or services.
Individuals violating the new consumer protection law face up to Dh2 million in fines and 2-year imprisonment.
Federal Law No. 15 of 2020 on Consumer Protection, published in November 2020, has been supplemented by long-awaited executive regulations that became effective on October 14, 2023.
Galadari Advocates and Legal Consultants’ senior counsel Hassan Tawakalna and Paralegal Ismail Ezzat said any condition discovered in a contract, invoice, or similar document aiming to exempt the provider from their obligations is deemed invalid,
The penalties may be imposed independently or concurrently, with the possibility of doubling them in the event of repeated violations.
>> Suppliers and commercial agents must accurately disclose all relevant information and clearly indicate the price of goods during display;
>> Goods advertising must not be misleading, and consumers must be provided with an invoice stating the price and date of purchase;
>> Suppliers must honour warranties, provide spare parts and maintenance services, replace defective goods, or refund their value in cash;
>> If supplier discovers flaws, defects, or hazards in products that may harm consumers, they must immediately notify the relevant authority immediately and remove the goods from the market;
>> In the event of product or service flaws, the supplier must offer repair, replacement, or a refund;
>> Provisions concerning repair, maintenance, or post-purchase assistance must be included in contractual agreements.
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