Key features of Saudi Arabia’s Consumer Protection Law

Abdulrahman Al-Hussein, official spokesperson for the Ministry of Commerce, revealed the key features of the Consumer Protection Law, which was approved by the Cabinet on Nov. 10.

The law is the Kingdom's first comprehensive consumer protection legislation, Al-Hussein said.

Its key features include prohibiting false reviews and comments, misrepresentation of consumer opinions, unfair practices and protecting consumers against abnormal price increases during crises and pandemics.

The law also allows comparative advertising between traders, enables consumer associations to file class-action lawsuits to compensate affected consumers, and introduces warranties for used services and products for the first time.

Minister of Commerce Majid Al-Qasabi said the Cabinet’s approval of the Consumer Protection Law marks an important legislative step toward strengthening consumer rights in the Kingdom by establishing clear legal safeguards, regulating the relationship between consumers and commercial establishments, and promoting fair business practices.

He explained that the law, which is the Kingdom’s first comprehensive consumer protection legislation, brings together the mandates of more than 20 government entities in its implementation, enhancing regulatory efficiency and consumer protection across products and services.

Al-Qasabi noted that the law includes provisions governing contracts and compensation for damages, as well as protecting groups more vulnerable to harm, including children, elderly people, and persons with special needs. It also sets out measures to curb abnormal price increases during crises and exceptional circumstances, helping maintain market stability.

The law comprises 10 chapters and 76 articles. It will replace three existing laws - the Anti-Commercial Fraud Law, the E-Commerce Law, and the Commercial Data Law - when it takes effect, 180 days after its publication in the Official Gazette.

The Ministry of Commerce said the law addresses commercial practices that influence consumer decisions, including imposing burdensome restrictions, threatening or pressuring consumers, and charging fees for using specific payment methods. It also prohibits misleading practices and attempts thereof, including providing false information that deceives consumers, concealing relevant information or presenting it ambiguously, and offering adulterated products for sale.

Violators face penalties including fines of up to SAR 8 million, imprisonment for up to two years, suspension of business activities, seizure of violating products, and publication of consumer warnings.

The law also introduces streamlined dispute-resolution mechanisms for handling minor claims, facilitating faster access to justice.