Federal Law No. (24) of 2006 On Consumer Protection
Preamble
* Amended by Federal Law No. (7) of 2011 dated 16/05/2011
We, Khalifa Bin Zayed Al Nahyan, President of the United Arab Emirates,
Pursuant to the perusal of the
Constitution; and
Federal Law No. (1) of 1972 Regarding the Jurisdiction of the Ministries and the Powers of the Ministers and the amending laws thereof; and
The Civil Transactions Law issued by Federal Law No. (5) of 1985 and the amending laws thereof; and
Federal Law No. (1) of 1979 Regarding the Regulation of Industry Affairs and the amending laws thereof; and
Federal Law No. (4) of 1979 Regarding Combating Cheating and Fraud in Commercial Transactions; and
Federal Law No. (18) of 1981 Regarding the Regulation of Trade Agencies and the amending laws thereof; and
The Penal Procedures Law issued by Federal Law No. (35) of 1992 and the amending laws thereof; and
The Penal Code issued by Federal Law No. (3) of 1987 and the amending laws thereof; and
Federal Law No. (37) of 1992 Regarding Trademarks and the amending laws thereof; and
The Commercial Transactions Law issued by Federal Law No. (18) of 1993; and
Federal Law No. (28) of 2001 On the Establishment of the Emirates Authority for Standardization and Metrology; and
Federal Law No. (1) of 2003 on the Establishment of the Federal Customs Authority; and
Acting upon the proposal of the Minister of Economy and the approval of the Council of Ministers and the ratification of the Federal Supreme Council;
Have promulgated the following Law:
Part One. Definitions
Article (1)
In the implementation of the provisions of this Law, the following words and phrases shall have the meanings respectively assigned to them, unless otherwise required by the context:
State: The United Arab Emirates;
Ministry: The Ministry of Economy;
Minister: The Minister of Economy;
Committee: Higher Committee for Consumer Protection;
Department: The Consumer Protection Department in the Ministry;
Competent Authority: The competent local authority in the concerned Emirate entrusted with the implementation of the provisions of this Law;
Accredited Standard Specifications: The Specifications accredited by the Emirates Authority for Standardizations and Metrology, and mentioned hereinafter as "Standard Specifications for the United Arab Emirates State";
Consumer: Any person who obtains goods or services – with or without charge – to satisfy his personal need or others needs;
Supplier: Every physical or juristic person who renders the service or information or manufactures, distributes trades, sells, imports or exports goods or interferes in their production or circulation;
Advertiser: Whoever advertises or promotes goods or service by using any means of announcement or advertisement;
Goods: Industrial, agricultural, animal or converted products including the raw materials of the substances and the components of the product;
Service: Every act rendered by any party to the consumer whether with or without charge;
Price: Comprises the sale price, the rent or usage cost.
Part Two. The Higher Committee for Consumer Protection
Article (2)
A Committee under the name of "The Higher Committee for Consumer Protection" shall be set up upon the proposal and chairmanship of the Minister. It shall comprise representatives of consumer protection associations. A decision shall be issued by the Council of Ministers for the constitution of the Committee and determination of its competencies.
Article (3)
In the event of crisis or extraordinary circumstances in the market that contribute to an abnormal increase in prices, the Minister, upon a recommendation from the Committee, shall adopt procedures to limit this increase, protect the consumers’ interests and not to cause them any harm.
The Implementing Regulation to this Law shall indicate the basis and procedures for the determination of whatever is deemed abnormal increase in prices and monopolies instances which certain measures must be adopted in this regard.
Part Three. Consumer Protection Department and Its Powers
Article (4)
A department shall be set up in the Ministry under the name of "The Consumer Protection Department" and shall carry out the following competencies:
1) Supervise on the execution of the general policy for consumer protection in cooperation with the concerned authorities in the State.
2) Coordinate with the concerned authorities in the State to confront unfair commercial practices which harm the consumer.
3) Coordinate and co-operate with the concerned authorities to disseminate the consumption awareness in the State on goods and services and inform consumers of their rights and means of claiming them.
4) Control prices movement and strive to limit their increase.
5) Seek for the achievement of fair competition and combating monopoly.
6) Receive consumers’ complaints and adopt the procedures in this regard or refer them to the competent authorities. The complaint may be submitted directly by the consumer, and may be submitted by the consumer protection association for it is considered a representative of the complainant.
7) Publish the decisions and recommendations that contribute to increasing consumer awareness.
Part Four. The Supplier Obligations
Article (5)
The supplier is required to return or exchange the goods in the event of any defect discovered by the consumer; such return or exchange shall be carried out pursuant to the rules decided in the implementing regulation to this Law.
Article (6)
The supplier must not display, offer, promote or advertise any goods or services which are adulterated, putrid or misleading which may inflict damage to the consumer interest or health in the course of ordinary usage.
Article (7)
Without prejudice to the texts of the relevant laws and regulations, the supplier, when offering any goods for circulation, is required to conspicuously affix on its cover or package, a label which includes information about the goods’ type and nature, composition, product name, production or packaging date, the net weight, country of origin and country of exportation (if exists), directions for use (if possible) and expiry date, with the attachment of a detailed list inside the package in Arabic language regarding the goods composition and specification, directions for use, risks and other information, in the manner decided by the Implementing Regulation to this Law.
If the usage of goods encompasses any risk, a warning must be apparently indicated.
Article (8)
The supplier when displaying any goods for trade is required to write down its price in an obvious form or advertise it in a conspicuous form at the place where goods are displayed. The consumer is entitled to obtain a dated invoice which includes a specification of the goods type and price and any other information decided by the Implementing Regulation to this Law.
Article (9)
The supplier shall be liable for any damage resultant from the usage or consumption of goods and shall also be liable for the non-provision of spare parts for durable goods within a defined period of time, and for the lack of warranties whether advertised or agreed upon with the consumer, pursuant to the rules issued by a decision from the Minister.
If the goods are locally produced, there shall be a joint liability between the producer and the seller for what is previously mentioned.
Article (10)
The supplier shall guarantee the conformity of goods or services provided for the consumer to the announced approved standard specifications and shall be liable for non-observance of the conditions related to the public health and safety.
Article (11)
Without prejudice to the provisions of Federal Law No. (18) of 1981 Regarding the Regulation of Trade Agencies and its amendments, every trade agent or distributor is required to execute all the guarantees offered by the producer or the agent to the goods object of agency.
If the execution of the guarantees provided for in the preceding paragraph requires a period in excess of two weeks, he shall also be required to provide similar goods for the consumer to use without charge until the agent execute these guarantees.
Article (12)
Every supplier is required to include in his contracts an obligation of repair, maintenance or after sale service and to return the goods within a defined time limit after a defect has been discovered.
Article (13)
The service supplier is required to guarantee the service rendered by him for a period appropriate to the nature of this service; otherwise, he must return the money paid by service recipient or redo the service in a valid manner. The Implementing Regulation to this Law shall determine the kinds of services and term of guarantee decided for each of them.
Article (14)
Any supplier may not hide any goods or refrain from selling them aiming to control the market price or force the purchase of certain quantities or the purchase of other goods with them or receive a price higher than the advertised price.
Article (15)
Without prejudice to the provisions the following two Articles of this Law regarding the consumer rights, every supplier immediately after discovering any defect in the goods or service when the goods or service upon its proper use may injure the consumer, must inform the Department, the concerned parties and the consumer of the potential damages and precautionary measures pursuant to whatever is decided by the Implementing Regulation to this Law.
Part Five. The Consumer Rights
Article (16)
The Consumer is entitled to a compensation for the personal or material damages pursuant to the general rules in force; any agreement to the contrary shall be null and void.
Article (17)
The Department shall enjoy the legal capacity to represent the consumer before the Courts and before any other party determined by the law.
Without prejudice to the parties’ rights to resort to the Courts, the Department may initiate any settlement related to consumers’ protection, and a grievance against its decisions may be submitted in this regard to the Minister.
Part Six. Penalties
Article (18)
* As amended by virtue of the Federal Law No. (7) of 2011 dated 16/05/2011
1. Without prejudice to any severer penalty set forth by any other law, whoever breaches the provisions hereof shall be sentenced as follows:
a) A fine amounting to AED 100,000 at least and AED 1,000,000 at most in the event of the violation thereby of any provision of Articles (6), (7) and (14) hereof.
b) A fine amounting to AED 10,000 at least and AED 200,000 at most in the event of the violation thereby of any provision of Articles (5), (8), (9.2), and (12) hereof.
c) A fine amounting to AED 20,000 at least and AED 120,000 at most in the event of the violation thereby of any provision of Articles (9.1), (10), (11), (13) and (15) hereof.
d) A fine amounting to AED 5,000 at least and AED 100,000 at most in the event of the breach of any other provision of the present Law, the Implementing Regulation, and the resolution issued in implementation thereof.
2. Fines set forth in clause (1) of the present Article shall be doubled in case of repetition of the same violation within 1 year from the perpetration of the previous violation, provided that the sanction is not less than half the set ceiling after doubling the fines.
3. By virtue of a Cabinet Resolution, and upon the proposal of the Minister, the violation that may subject to conciliation and the sum to be paid by the violating party in each case shall be determined, provided that such sum does not exceed the maximum amount set forth herein. Should the violating party refuse the conciliation, the violation shall then be referred to the public prosecution for the appropriate measure.
4. The Cabinet shall issue a resolution setting the necessary restrictions and procedures for the completion of the conciliation, as well as the rules and conditions of application thereof in crimes perpetrated within the scope of the provisions hereof. Furthermore, the Minister shall issue a resolution whereby conciliation committees are formed in view of executing the provisions of the aforementioned cabinet resolution.
Article (19)
The Court, in the event of conviction in any of the crimes comprised in the provisions of this Law, and in addition to the prescribed penalty may decide to confiscate or destroy the product object of the crime and the materials and tools used in its production.
Article (20)
The Implementing Regulation to this Law shall decide the categories and the periods necessary to rectify the situations in conformity with the provisions of this Law.
The Minister in the event of non-rectification of the situations, after the elapse of the decided period, shall cease the facility from carrying out its activity for one week at most and refer the matter to the Court regarding the closure of the facility and disposal of the goods object of violation.
Article (21)
The officials whose their names are decided by a decision from the Minister of Justice in coordination with the Minister and the competent authorities, shall have the judicial capacity for the verification of crimes committed in violation to the provisions of this Law and decisions issued in this regard.
These officials are entitled to review all the documents and deeds necessary for carrying out their tasks.
Article (22)
Without prejudice to the international conventions and agreements to which the State is a party, the Council of Ministers may exempt from the enforcement of some of the provisions of this Law by a justified decision issued by him upon the proposal of the Minister.
Article (23)
The Council of Ministers shall issue the Implementing Regulation to the provisions of this Law, and the Minister shall issue the necessary decisions for this implementation.
Article (24)
This Law shall be published in the Official Gazette, and shall come into force three months subsequent to its publication.
Promulgated by Us at the Presidential Palace in Abu Dhabi
On 13 August 2006
Corresponding to 19 Rajab 1427 H.
Khalifa Bin Zayed Al Nahyan
President of the United Arab Emirates
