Saudi Arabia introduces fines of up to SR8 million, jail terms under new consumer protection law
New law also allows business suspensions and temporary price controls during crises
Dubai: Saudi Arabia has introduced tough 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.
The legislation, approved by the Council of Ministers, also allows authorities to publish warnings to consumers about violations, as part of sweeping measures aimed at strengthening consumer rights and combating unfair commercial practices.
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The Ministry of Commerce described the law as the Kingdom's first comprehensive legislation governing consumer rights across products and services under a unified legal framework.
The law will take effect 180 days after its publication in the Official Gazette, replacing three existing pieces of legislation: 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 against unjustified price increases during extraordinary circumstances, including crises and pandemics.
These measures include temporary price controls, maximum profit margins and a requirement for businesses to obtain prior approval from the relevant authority before raising prices.
The ministry said the provisions were designed 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 charging additional fees for the use of specific payment methods.
The law further bans misleading commercial practices, including providing false information, concealing or misrepresenting essential details about products and services, and offering counterfeit goods.
Stronger safeguards for vulnerable consumers
The legislation introduces additional protections for vulnerable groups, including children, elderly people and people with disabilities.
Advertisements targeting children must not contain messages or content that could endanger their lives, health or safety.
The law also permits comparative advertising between businesses, allowing consumers to assess competing products and services through fair and transparent comparisons.
Consumer safeguards will be extended to contracts concluded outside physical retail premises, providing protections similar to those already available for electronic transactions.
Faster resolution of disputes
The ministry said the legislation introduces simplified procedures for handling minor consumer disputes, aimed at accelerating the resolution of complaints 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 provide consumers with clearer legal protections across the Kingdom's commercial sectors.
