Saudi Arabia Approves Comprehensive Consumer Protection Law

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Saudi Arabia’s Council of Ministers has approved the country’s first comprehensive consumer protection law, bringing consumer rights for products and services under a single legal framework, the Ministry of Commerce said.

The law will be implemented through coordination among 20 government entities responsible for consumer protection and market oversight. It covers protection from harmful, defective or non-compliant products and services, as well as the right to compensation for resulting damages.

During unusual circumstances, crises and pandemics, the framework allows temporary measures to address abnormal price increases. These may include price controls, limits on profit margins and prior approval requirements before businesses raise prices.

The law also prohibits misleading commercial practices, including false or concealed information, counterfeit products and pressure tactics that restrict consumer choice. It permits comparative advertising when it supports fair and transparent comparisons, and extends safeguards to contracts made outside commercial premises.

Additional provisions protect children, older people and people with disabilities. Advertising aimed at children must not contain messages that could harm their lives, health or safety. Violations may result in fines of up to SAR 8M, prison terms of up to two years, suspension of activity, product seizure and public warnings.

The law will take effect 180 days after publication in the official gazette and will replace the Anti-Commercial Fraud Law, E-Commerce Law and Commercial Data Law.

Source: Rowad Al Aamal

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