New Law Also Permits Business Suspensions and Temporary Price Controls During Crises.
Dubai: Saudi Arabia has introduced stringent penalties for violations of its new Consumer Protection Law, including fines of up to SR8 million, imprisonment for up to two years, suspension of business activities and confiscation of non-compliant products.
Approved by the Council of Ministers, the legislation also empowers authorities to issue public warnings about violations, as part of broader efforts to strengthen consumer rights and combat unfair commercial practices.
The Ministry of Commerce described the law as the Kingdom’s first comprehensive legislation to regulate consumer rights across products and services under a unified legal framework.
The law will come into force 180 days after its publication in the Official Gazette, replacing three existing laws: the Anti-Commercial Fraud Law, the E-Commerce Law and the Commercial Data Law.
Price controls during crises
One of the law’s key provisions empowers authorities to introduce exceptional measures to protect consumers from unjustified price increases during extraordinary circumstances, including crises and pandemics.
These measures include temporary price controls, caps on profit margins and a requirement for businesses to obtain prior approval from the relevant authority before increasing prices.
The ministry said the provisions aim to maintain market stability and protect consumers from excessive pricing during periods of disruption.
The legislation also targets commercial practices that could unfairly influence purchasing decisions, including imposing unreasonable restrictions on consumers, threatening them or exerting undue pressure.
Businesses will also be prohibited from imposing additional charges based on the payment method used by consumers.
The law further prohibits misleading commercial practices, including providing false information, concealing or misrepresenting essential details about products and services, and selling counterfeit goods.
Stronger safeguards for vulnerable consumers
The legislation introduces additional protections for vulnerable groups, including children, elderly people and people with disabilities.
Advertisements aimed at children must not contain messages or content that could put their lives, health or safety at risk.
The law also permits comparative advertising between businesses, enabling consumers to evaluate competing products and services through fair and transparent comparisons.
Consumer protections will also apply to contracts concluded outside physical retail premises, extending safeguards similar to those already available for electronic transactions.
Faster resolution of disputes
The ministry said the legislation introduces simplified procedures for resolving minor consumer disputes, with the aim of speeding up complaint handling and improving access to justice.
Consumers will also be entitled to compensation for damage caused by harmful, defective or non-compliant products and services.
Implementation of the law will involve coordination among 20 government agencies responsible for consumer protection and market oversight.
The ministry said the unified framework would strengthen accountability, improve enforcement and give consumers clearer legal protections across the Kingdom’s commercial sectors.
