The United Arab Emirates (UAE), in recent years, saw a sharp rise in consumer base using e-commerce platforms for the purchase and sale of goods and services. Such modern technology-based trade is regulated by the Federal Decree Law Concerning Modern Technology-Based Trade, issued by the President of the UAE in September 2023.
Applicability
The law is applicable to anyone who carries out any activity in relation to Modern Technology-Based Trade inside the State. Even businesses in the free zones selling goods or services in the mainland shall have to comply with these terms. In addition, if a free zone does not have its separate law for such activity, then the provision of this decree law shall be applicable.
Objectives of Decree Law
The objective of the decree law is to:
• Promote Modern Technology-Based Trade for goods and services,
• Develop a legislative framework for such trade,
• Protect Consumer Interest and safety, provide data protection, protect intellectual property, and provide secure digital payment methods.
Obligations of Business
Any entity or individual engaging in such trade shall fulfill the following standards and requirements:
• Have legal capacity and fulfil the necessary legal and regulatory licensing requirements,
• Providing technically safe environment and following regulatory standards with respect to electronic security, cybersecurity, and anti-hacking,
• Selling only legally permitted goods or services,
• Providing clear terms, conditions, and details with regard to the goods and services being sold and refraining from dealing in a misleading manner,
• Providing non-paper digital invoices, etc.
Consumer Rights
As per the decree law the consumer shall have the following rights:
• Obtain goods and services as per the terms and conditions on the platform,
• Safe access to the purchase of goods or services regarding payment methods,
• Option to receive or refuse promotional or marketing campaigns,
• Transparent review policy for consumers to view,
• Designated review and complaints policy and mechanism,
• Right to return products which are defective, incomplete, damaged, delayed, or contrary to the description provided on the platform.
Conclusion
The Federal Decree Law provides comprehensive guidelines for e-commerce platforms that ensure that the consumer’s interest is protected at all times. Furthermore, the clear obligations on businesses for terms and conditions, and cyber safety provides clear mandate that all the businesses operating in this space will have to follow. The law creates a level playing field for all the players involved. Lastly, the law is important from the aspect that all activities and work related to Modern Technology-Based Trade shall now have the same probative value vested in the traditional trade.
For more information, you may contact:
Thomas Paoletti
Francesca Romana Valeri
Fauzia Khan
