Saudi Minister of Commerce Dr. Majid Al-Kassabi stressed that the Cabinet's approval of the Consumer Protection Law on Tuesday is a significant legislative step toward strengthening consumer rights in the Kingdom.
The step establishes clear regulatory guarantees, regulating the relationship between consumers and commercial establishments, and promoting fair trade practices, he added.
Al-Kassabi explained that this is the first comprehensive consumer protection law in Saudi Arabia, integrating the jurisdictions of more than 20 government entities in its implementation to boost oversight efficiency and strengthen the protection of consumer rights.
He noted that the law includes provisions regulating contracts and compensation for damages, as well as protecting the most vulnerable groups, including children, the elderly, and persons with disabilities. It also includes measures to curb abnormal price increases during crises and extraordinary circumstances, which helps ensure market stability.
The law will take effect 180 days after its publication in the Official Gazette. It will replace the Anti-Commercial Fraud Law, the E-Commerce Law, and the Commercial Data Law.
Protection against abnormal price increases
The law established exceptional measures to protect against abnormal price increases during extraordinary circumstances, crises, and pandemics, including price fixing, setting a cap on profit margins, and obtaining prior approval from the competent authority before raising prices.
The Ministry of Commerce said the law addresses commercial practices that influence consumer decisions, such as imposing burdensome restrictions, threatening or coercing consumers, or charging them fees for using a specific payment method.
The ministry added that the law prohibits misleading practices or attempts to engage in them, including providing false information that leads to deception, concealing relevant information, presenting it ambiguously, or offering adulterated products with the intent of supplying them to consumers.
Enabling consumers to compare products and services
The law permits comparative advertising among economic operators to help consumers compare products and services fairly and transparently. It also strengthens consumer protection for off-premises contracts by subjecting them to safeguards similar to those applied in e-commerce.
The ministry noted that the law established special provisions to protect the most vulnerable groups and prohibited advertisements directed at children from containing any messages that could be harmful to them.
The law imposes strict penalties on violators, including fines of up to 8 million riyals ($2.1 million), prison sentences of up to two years, suspension of business activities, seizure of non-compliant products, and the publication of consumer warnings. It also introduces streamlined dispute resolution mechanisms for small claims to ensure swifter access to justice.
