The E-Commerce Law in the Kingdom of Saudi Arabia is a government law related to e-commerce in the Kingdom. It was issued on July 10, 2019, and consists of twenty-six articles. Its application covers merchants, consumers, and practitioners. The E-Commerce Council is responsible for monitoring and evaluating e-commerce activities in the Kingdom.
The law includes several provisions, such as: the sale and display of products, the offering and advertising of services, the exchange of related data, and outlining the penalties for those who violate the regulations.
Objectives of the E-Commerce Law in Saudi Arabia
The E-Commerce Law in the Kingdom aims to protect online shoppers, stimulate and grow e-commerce activities in the Kingdom, increase its contribution to the national economy to achieve the goals of Saudi Vision 2030 and enhance the reliability of electronic transactions.
Provisions of the E-Commerce Law in Saudi Arabia
The E-Commerce Law imposes several obligations on service providers, including: protecting the personal data of online shoppers, addressing issues related to delayed deliveries, adhering to the regulations of licensed professions that require a license for practice, disclosing the service provider’s business location as listed in the commercial registry, or if there is no business location, providing the service provider's residence. It also includes the removal or blocking of non-compliant advertisements, coordinating electronic commercial advertisements, disclosing contact information, and providing the essential characteristics of goods.
The law requires the service provider to issue an invoice to the consumer after the contract is concluded, clearly stating the costs of purchasing each product or providing a service, the total price including any applicable fees, taxes, or additional delivery charges (if any), as well as the delivery date and location.
The law prohibits the service provider from including in an electronic advertisement any logo or trademark they do not have the right to use, or any counterfeit mark. It also prohibits the inclusion of any false offer, statement, or claim, or the use of terms that may directly or indirectly deceive or mislead the consumer.
Online store information
According to the E-Commerce Law in the Kingdom, store owners are required to display certain information about their business, such as: the store’s name and address, contact methods including the website, phone number, and email address, in addition to the commercial registration number.
Before concluding an electronic agreement between the parties, it is also mandatory to clarify the terms and conditions of the contract, which include: the store's information, the total price including delivery fees and taxes, warranty details, product characteristics, payment and delivery schedules, and the procedures for concluding the contract.
Relationship between E-Commerce practitioner and online shopper
The E-Commerce Law in the Kingdom regulates the relationship between consumers and practitioners who do not hold a commercial registration by requiring the identification of the business location in the online store, and clearly displaying the store's name, address, and email. The law also mandates the verification of business activities through one of the authorized verification platforms, ensures the protection of consumers' personal data, and requires the provision of all electronic contract details. If the practitioner violates the provisions of the law, they will be subject to penalties.
Product return and order cancellation
According to the E-Commerce Law in the Kingdom, consumers have the right to return a product within seven days of the contract date if they do not wish to keep it, provided the product has not been used or benefited from. Exceptions to this include: newspapers and magazines, software downloaded via the internet, CDs and DVDs, products made to specific consumer specifications, and transportation and catering services.
Penalties under the E-Commerce Law in Saudi Arabia
The E-Commerce Law in the Kingdom imposes a range of penalties for those who violate its provisions, including: a warning, a fine not exceeding SAR1 million, temporary or permanent suspension of e-commerce activities, and partial or complete blocking of the online store.
A committee, or more than one, is formed by a decision from the Minister of Commerce to review violations of the E-Commerce Law or its executive regulations and impose the penalties specified in the law. The committee must consist of at least three members, including at least one legal advisor, and decisions are made by majority vote. In determining the appropriate penalty, the severity of the violation, its recurrence, the scale of the service provider's business, and the harm caused to others are taken into account.
The E-Commerce Law in the Kingdom grants the right to any person against whom a decision has been issued under the law to appeal that decision before the Administrative Court. Additionally, the decision may include a provision for publishing its contents at the violator's expense in one or more local newspapers issued in the location of their residence, or through any other appropriate means, depending on the type, severity, and impact of the violation. The publication must occur after the legally prescribed period has passed or once the ruling has become final. The competent court is responsible for resolving disputes, including claims for compensation arising from the application of the provisions of the law.
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