Strengthening Consumer Rights in the UAE: Key Updates Under Federal Decree-Law No. 5 of 2023

The UAE’s commitment to protecting consumer rights continues to evolve with the introduction of Federal Decree-Law No. 5 of 2023, replacing the earlier Federal Law No. 15 of 2020. The updated framework addresses the rise of e-commerce and strengthens enforcement measures, aligning the UAE’s consumer protection regime with global standards. These enhancements are designed to ensure a fair, transparent, and safe marketplace for residents and businesses alike.

What the Law Covers:

The law applies broadly to all goods and services across the UAE, including free zones, and covers traditional retail as well as e-commerce transactions—provided the supplier is registered within the UAE. Transactions from foreign-registered websites remain outside its jurisdiction.

Key Consumer Rights:

Consumers now enjoy a stronger set of protections, including:

• Accurate product and service information

• Protection against misleading advertising

• Right to refunds, repairs, and replacements

• Protection against unfair contract terms

• Right to privacy in commercial transactions

Suppliers must label products clearly, provide Arabic invoices, ensure safety standards, notify authorities of product defects, and avoid imposing unfair terms in contracts.

Enforcement and Penalties:

The enforcement framework is significantly more robust than before:

• Penalties now range from AED 100,000 to AED 1 million.

• Offenders face possible suspension, license revocation, or imprisonment for serious breaches.

• Oversight is shared by the Ministry of Economy, Departments of Economic Development (DEDs), Abu Dhabi Quality and Conformity Council, and the Emirates Society for Consumer Protection.

Consumers can lodge complaints through the Ministry of Economy hotline (800 1222) or their local DED offices.

Conclusion:

The UAE’s updated consumer protection law signals a forward-looking approach that balances innovation in e-commerce with strong safeguards for consumers. With stricter enforcement and a broader scope of coverage, the UAE is reinforcing its reputation as a trustworthy, competitive marketplace both regionally and internationally.