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.
