The New Federal Law No. 15 of 2020 Regarding Consumer Protection.

Federal Law No. 15 of 2020 Regarding Consumer Protection

Federal Law No. 15 of 2020 regarding Consumer Protection (“New Law”) issued on 10/11/2020, which completely repealed the previous Federal Law No. 24 of 2006, has come into force officially since 16/11/2020. The New Law prohibits including any condition when contracting with the Consumer that would harm the latter and voids condition provided for in the contract or invoice or otherwise that would exempt the Supplier from any of the obligations stipulated in the New Law regarding consumer protection. According to the New Law, its provisions are extended to cover consuming in both of free zones and electronic commerce provided by registered suppliers. The New Law has set a comprehensive definition of the consumer, in addition to increase the consumer basic rights. The New Law has newly stipulated the obligations of the provider, advertiser, and commercial agent. According to the New Law, Arabic is the official language of invoices, data, advertisements and contracts concerning the consumer. The New Law has expanded the penalties concerning violating of its provisions. Moreover, the decision of Minister of Economy concerning the grievance from the actions taken related to the provisions of the New Law shall be final. The Council of Ministers shall issue the Implementing Regulation of this Law within six months from the date of its publication. The provisions of Federal Law No. 15 of 2020 regarding Consumer Protection are below.

Article 2 : Objectives of the Law

This Law aims to protect all Consumer rights, and in particular the following:

1- The quality of the Good and the Service and obtaining them at the declared Price.

2- Preserving the health and safety of the Consumer when obtaining the Good or receiving the Service, without harming him when using the Good or receiving the Service.

3- Encouraging healthy consumption patterns.

Article 3 - Applicability of the Law:

The provisions of this Law shall apply to all Goods and Services within the State, including free zones, and operations related thereto and carried out by the Supplier, the Advertiser, or the commercial agent, as well as those carried out by means of electronic commerce if the Supplier is registered inside the State, without prejudice to international treaties and agreements to which the State is a party.

Article 4 - Consumer Rights

All obligations established under this Law are considered rights of the Consumer, including:

1- Providing an appropriate and safe environment when purchasing a Good or receiving a Service.

2- Obtaining correct information about the Goods that he purchases, uses, or consumes, or the Service he receives.

3- Educating him and raising his awareness in respect of his rights and obligations.

4- Exercising his rights to choose the most appropriate product and Service available in the market according to his wishes.

5- Protecting the privacy and security of his data and not using it for promotional and marketing purposes.

6- Respecting his religious values, customs and traditions when providing him with any Good or receiving any Service.

7- Just and prompt settlement of his disputes.

8- Obtaining fair compensation for damages incurred by him or his money as a result of purchasing or using the Good or receiving the Service.

9- All other rights stipulated by the legislation in force in the State.

Any other rights may be added by a decision of the Council of Ministers.

Article 5: The Supreme Committee for Consumer Protection:

1) A higher committee to be called “the Supreme Committee for Consumer Protection” is formed by a Cabinet decision based on the Minister's proposal. Said Committee shall be affiliated with the Ministry and chaired by the Minister with the membership of representatives from the competent authorities and Consumer protection societies, in addition to two experienced and competent persons chosen by the Minister. The decision shall determine the Committee's work system.

2) The Committee shall assume the following competencies:

a- Setting general policies for Consumer protection.

b- Studying the Consumer protection reports referred to it by the Department and the Competent Authority and taking the necessary decisions in their regard.

c- Studying the obstacles facing the application of the law and proposing a mechanism to address them.

d- Studying the suggestions and recommendations that are submitted thereto and relating to protecting the right of Consumers and expressing opinion thereon.

e- Developing plans and programs to educate Consumers and raise their awareness in respect of their economic rights and obligations.

f- Studying the proposals of the Minister thereto and issuing recommendations in their regard.

g- Any other functions assigned thereto by the Council of Ministers.

Article 6 - Coordination with the Relevant Authorities

1. The Department shall coordinate with the Relevant Authorities to ensure the protection of Consumer rights.

2. The Department shall submit periodic reports to the Committee regarding coordination between it and the Relevant Authorities.

3. The Implementing Regulation of this Law shall determine the controls for implementing the provisions of this article.

Article 7 - Explanatory Information

1. The Supplier shall, upon offering the Good for sale, place the Explanatory Information on its cover or package, or in a place where it is displayed in a clear and legible manner, and he shall indicate the manner according to which it shall be installed and used, in accordance with the Standard Specifications legislation in force in the State.

2. If the use of the Good is hazardous, the Supplier shall clearly state the same according to what is specified by the Implementing Regulation of this Law.

Article 8 - Price of Good and Service

1. When offering the Good for sale, the Supplier shall clearly place the Price thereon.

2. When declaring the Prices of Goods and Services rendered by the Supplier, advertisement thereof shall not be misleading.

3. The Supplier shall provide the Consumer with a dated Invoice that includes his trade name, address, type of Good, its Price and quantity, or the type of Service, its Price and details, and any other data specified by the Implementing Regulation of this Law.

4. The Invoice shall be in Arabic, and the Supplier may add any other language he specifies.

Article 9 - Facing emergency circumstances

In the event of a crisis, emergency circumstances, or unusual conditions in the internal or external markets, the Minister may

take all necessary measures to protect and preserve the interest of Consumers from any harm, and he may issue a decision

specifying the selling Prices of any Good or Goods[1 p.9], and all Suppliers in the State shall be bound by this decision.

Article 10 - Obligation of the Supplier to implement the Warranty

1. The Supplier shall implement all Warranties, provide the required spare parts and maintenance, replace the Good, or refund its monetary value, and commit to After-Sales Service as regards the sold Goods, within the specified time limit.

2. The Supplier shall guarantee the Service he provides and that it is free from Defects and Malfunctions within a period of time commensurate with the nature of that Service, otherwise he shall return the amount paid by the Consumer or a part thereof, or he shall re-perform the Service properly.