The new legislation extends both the protections available to consumers, as well as the obligations applicable to e-commerce retailers.

By Brian A. Meenagh and Avinash Balendran

With its recent implementation of a new consumer protection law, the United Arab Emirates has taken a significant step forward in protecting the rights of consumers. The new legislation — Federal Law No. (15) of 2020 (the New CPL) — entered into force on 16 November 2020, repealing Federal Law No. (24) of 2006. In particular, the New CPL extends both the protections available to consumers, as well as the obligations applicable to e-commerce retailers.

One stand-out provision in the New CPL is Article 4(5), which places an obligation on Entities (as defined below) to protect “consumers’ privacy and data security”. Article 4(5) also implies that Entities should not use consumer data for “the purposes of promotion or marketing”.

UAE competition Law

The expiration date is looming for the six month transitional period granted to the Federal Law No. 4 of 2012 (the “Competition Law”) On 23 February 2013, the new Competition Law came into force in the UAE, prohibiting certain types of restrictive agreements and abuses of dominance, and introducing merger control. The 23 August 2013 marks the end of this transitional period. In the run up to August, no penalties are likely to apply for non-compliance with the Competition Law.