Saudi Arabia Warns of SR8 Million Fine for Consumer Protection Law Breaches

Saudi Arabia unveiled a law to protect consumers that was enacted last year and imposes fines of up to SR8 million and prison sentences of up to two years on serious offenses. It provides a common consumer rights regime throughout goods/services to help reduce commercial fraud and promote fairer practices. It will be approved by the Cabinet on November 10, 2026 and will enter into force 180 days after the publication in the Official Gazette.

Consumer Protection Law Introduces Tougher Penalties

Commercial activities can be suspended and up to SR8 million can be imposed as fines and up to two years imprisonment is applied to businesses which are found to be in violation of the new rules with the product being seized and commercial activities suspended when non-compliant in Saudi Arabia.

Authorities can also issue consumer alerts and take corrective measures against businesses that cause them to be in trouble. Penalties are designed to dissuade deceptive practices and increase accountability in the real and virtual markets.

Consumer Protection Law Strengthens Product Warranties

One of the key aspects of the law is the minimum warranty, permitting at least two years’ warranty for new goods and one year for used goods and services. Also aims to curb “misleading advertisements, bogus online-based ratings, hidden product claims or other hidden fees for certain payment types. The provisions are designed to provide consumers with more information and consumer protection when buying goods or services.

Consumer Protection Law Allows Crisis Price Controls

Authorities will be provided with a mechanism to deal with unusual price increases during emergencies, pandemics or in other exceptional circumstances. Some measures include temporary price control, limitation of profit margin and prior approval for price raising. Protects children, older people and people with disabilities, as well as contracts made outside of a traditional retail environment.

Consumer Protection Law Unifies Market Oversight

When the law goes into effect on April 1, 2024, the 76-article legislation will replace the Anti-Commercial Fraud Law, E-Commerce Law, and Commercial Data Law. Enforcement and market supervision will be coordinated by more than 20 government departments. 

The law will be a huge correction towards a well-established consumer protection system, fair business conducting and robust dispute resolution processes, said Commerce Minister Majid Al-Qasabi.

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