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UAE Law: Safeguarding Consumers and Addressing Market Gaps

To protect customers and improve supplier accountability, the UAE passed a strong consumer protection law in October.

The UAE has implemented a robust consumer protection law effective October to safeguard consumers and enhance supplier accountability. The law carries significant penalties for violations and addresses several issues previously unexplored.

Under Federal Law No. 15 of 2020, consumers are protected from contracts containing clauses that could harm their interests, enabling them to seek compensation for damages incurred due to products or services.

Stringent Penalties for Violations:

Violators of the consumer protection law face severe penalties, including fines of up to Dh2 million and imprisonment for up to 2 years, underscoring the seriousness of non-compliance.

Legal experts highlight key improvements in the law, emphasizing the importance of accurate price disclosure, non-misleading advertising, and upholding warranties and post-purchase services.

Addressing Monopolies and E-commerce:

The law confronts monopolistic practices, imposing penalties for concealing goods and influencing prices. It also delves into e-commerce, defining authorized entities and introducing regulations specific to this domain.

The law outlines procedures for dispute resolution between suppliers and consumers, necessitating involvement from experts or testing facilities. Additionally, it empowers authorities to prohibit or detain goods deemed hazardous or harmful to consumers, enhancing market safety.

Strengthening Consumer Safeguards:

Legal experts commend the law for incorporating penalties previously absent in legislation, emphasizing its role in safeguarding consumers against fraudulent activities and deceptive practices, ultimately aiming to secure the consumer market.

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