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In response to shifting consumer behaviors in a post-pandemic world, the United Arab Emirates has introduced new Executive Regulations to Federal Law No.15 of 2020 on Consumer Protection. Implemented on October 14, 2023, these regulations aim to address evolving consumer needs and provide clarity on consumer rights and protections. This article explores the key changes brought by these regulations and their implications.
Scope of Regulation and Key Changes
It's crucial to note that the regulations do not cover eCommerce activities between UAE customers and unregistered businesses. The key changes include:
A. Used, Damaged, and Refurbished Products
The regulations now set robust standards for used, damaged, and refurbished products. Article 7 emphasizes transparency, requiring disclosure of the product's condition at the supplier's location and directly on the item. This ensures consumer safety, especially for lower-income consumers.
B. Competition and Inflation
The regulations address inflationary pressures and anti-competitive activities. Supplier actions that contribute to price elevation, export prohibitions, and sales quotas are restricted, aligning with the goal of fostering a competitive economic environment.
C. Harmful and Prohibited Clauses
Article 34 clarifies the identification of harmful contractual clauses. Any terms relieving providers of responsibilities to customers are deemed null and invalid, extending beyond the primary contract to related documents like invoices.
D. Labeling and Invoicing
Stringent requirements are imposed on product labeling, invoicing, and advertising. Article 5 outlines specific display methods for product pricing, and Article 6 mandates invoicing requirements, including content and the provision of warranties.
E. After-Sale Parts
Flexibility is introduced regarding guarantee durations, terms, and post-sale service pricing through ministerial decisions. Articles 20, 21, 13, 14, and 16 detail supplier and consumer responsibilities related to defects, reporting, warranties, spare parts, and maintenance services.
Final Remarks
The implementation of these new consumer protection regulations marks a pivotal moment in establishing a marketplace characterized by fairness and transparency. With a focus on safeguarding consumer interests, the UAE's commitment to navigating evolving economic dynamics is evident through the enactment of Federal Law No. 15 of 2020 on Consumer Protection on October 14, 2023.