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UAE Introduces 46 New Offenses in Consumer Protection Law, Imposing Up to Dh1 Million Fine.

Consumer Protection Law In a groundbreaking move, the Ministry of Economy in the UAE has implemented significant changes to consumer protection laws. The introduction of 46 new violations, with fines reaching up to Dh1 million, represents a substantial amendment under Federal Decree Law No. 5 of 2023, with a focus on strengthening consumer rights.

Enhanced Commitments and Regulatory Measures

The amendment places more than 43 commitments on goods providers, incorporating integrated regulatory mechanisms and procedures. The overarching goal is to foster ethical business practices, elevate consumer satisfaction, happiness, and enhance overall well-being.

Diverse Fines for Varied Offenses: Consumer Protection Law

Abdullah Al Saleh, the undersecretary of the Ministry of Economy, outlined the diverse range of violations, each carrying fines ranging from Dh100,000 to Dh1 million. Examples include a Dh250,000 penalty for suppliers failing to promptly address defects and a Dh200,000 fine for non-compliance with safety and health standards.

Severe Consequences for Repeat Offenses

Emphasizing the severity of consequences, Al Saleh noted that repeated offenses could lead to severe outcomes such as license cancellation or business deregistration. These penalties are designed to streamline consumer protection measures and reduce the complexity of legal proceedings.

Expedited Dispute Resolution and Transparency

The new regulations expedite dispute resolution, saving consumers from resorting to the judiciary for every case. Additionally, they enhance transparency, prohibit harmful clauses to consumers, and discourage monopolistic practices by restricting certain conditions in consumer contracts.

Collaboration for Efficient Consumer Complaint Management

The Ministry of Economy is actively collaborating with local government entities to establish an efficient system for managing and promptly addressing consumer complaints. This initiative aims to bolster consumer confidence and safeguard their rights in the UAE’s markets.

Encouraging Informed Consumerism: Consumer Protection Law

Consumers are encouraged to familiarize themselves with their legal rights outlined in the new legislation. Al Saleh highlighted a new provision requiring merchants to price products by unit, ensuring transparency and preventing misleading offers.

Empowered Local Authorities for Effective Enforcement

Al Saleh underscored the strengthened role of local authorities in enforcing consumer protection laws effectively. These authorities are empowered with legislative tools to receive, follow up, and act on consumer complaints, impose sanctions for law violations, and address grievances against punitive measures.

This comprehensive reform underscores the UAE’s commitment to enhancing consumer protection and promoting fair business practices in the market.

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