Maximum 2-year-jail and SR8 million fine for Consumer Protection Law violations

ملخص مفصل

The Ministry of Commerce announced that the Consumer Protection Law, approved by the Council of Ministers on Tuesday, is the first comprehensive legislation to regulate consumer rights in products and services under a unified legal framework.

RIYADH — The Ministry of Commerce announced that the Consumer Protection Law, approved by the Council of Ministers on Tuesday, is the first comprehensive legislation to regulate consumer rights in 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 regulations: the Anti-Commercial Fraud Law, the E-Commerce Law, and the Commercial Data Law.

The law prescribes penalties for violations, including fines of up to SR8 million, imprisonment for up to two years, suspension of business activities, confiscation of non-compliant products, and publication of warnings to consumers. It also introduces enhanced dispute-resolution mechanisms through simplified procedures for handling minor cases, thereby expediting access to justice.

The law introduces exceptional measures to protect consumers from unusual price increases during extraordinary circumstances, crises, and pandemics. These measures include imposing temporary price controls, setting maximum profit margins, and requiring prior approval from the relevant authority before any price increase. These provisions are intended to maintain market stability and safeguard consumer interests.

The Ministry of Commerce said the law addresses commercial practices that influence consumer decisions, including imposing burdensome restrictions, threatening or exerting undue influence on consumers, and charging fees for using specific payment methods. It also prohibits misleading practices, such as providing false information that deceives consumers, concealing or misrepresenting relevant information, and offering counterfeit products.

The law permits comparative advertising among economic operators, enabling consumers to make fair and transparent comparisons of products and services. It also strengthens consumer protection in contracts for products and services concluded outside physical stores by extending safeguards similar to…

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