Saudi Arabia has approved a sweeping Consumer Protection Law that introduces fines of up to SR8 million and prison sentences of up to two years for violations, as authorities seek to strengthen shoppers’ rights and tackle unfair business practices.
The legislation, approved by the Council of Ministers on November 10, brings consumer protections for goods and services into a single legal framework. The Ministry of Commerce says the changes will also make it easier to resolve complaints and obtain compensation for harm caused by defective or non-compliant products.
The law will take effect 180 days after publication in the Official Gazette, a transition period intended to give businesses and regulators time to prepare.
Tougher Penalties for Consumer Law Violations
Alongside the maximum financial and prison penalties, authorities will be able to suspend business operations, seize products that breach the rules, and issue public warnings.
The framework also introduces corrective action before some cases escalate. Businesses may be directed to fix a violation and address its consequences within a specified period. More serious cases could lead to product or service suspensions, the removal of unlawful advertisements, or restrictions on offending websites.
The maximum penalties do not mean every infringement will result in an SR8 million fine or imprisonment. Enforcement will depend on the applicable legal provisions and circumstances of the case.
Misleading Advertising and Unfair Fees Targeted
The law prohibits deceptive commercial practices, including false product information, withholding important details, and offering adulterated goods to consumers.
It also addresses pressure tactics that interfere with purchasing decisions, unreasonable restrictions imposed on buyers, and extra charges linked to particular payment methods.
Businesses may compare their products with competitors’ offerings in advertisements, provided the comparisons are fair and transparent. Protections will also extend to certain contracts signed away from traditional shops, with safeguards similar to those governing online purchases.
These provisions are particularly relevant to retailers, service providers and e-commerce businesses that rely on advertising, digital checkout systems and standardized consumer contracts.
Emergency Price Controls and Protection for Vulnerable Buyers
Another significant provision gives authorities additional tools to respond to unusual price increases during crises, pandemics and other exceptional circumstances.
Subject to the required approvals and procedures, temporary measures may include setting prices, capping profit margins and requiring official permission before businesses raise prices. These are emergency powers rather than a general freeze on everyday prices.
Special safeguards cover children, older adults and people with disabilities. Advertisements aimed at children must not include messages that threaten their health, lives or safety.
Faster Disputes and a New Compliance Deadline
The legislation provides simplified procedures for smaller consumer disputes and reinforces the right to seek compensation for damage involving harmful, faulty or non-compliant goods and services.
Implementation will involve 20 government bodies responsible for protecting consumers and supervising markets, according to the Ministry of Commerce. Once effective, the unified law will replace the Anti-Commercial Fraud Law, the E-Commerce Law and the Commercial Data Law.
For example, retailers could review how discounts are presented, whether checkout fees are disclosed, and how customer complaints are properly recorded.
For businesses, the transition creates a practical deadline to review advertising claims, payment charges, product information, contracts and complaint-handling procedures. Consumers, meanwhile, can expect clearer protections across in-store and online transactions once the framework comes into operation.
The changes mark a shift toward a more coordinated approach to consumer oversight in Saudi Arabia, combining stronger sanctions with faster remedies and specific protections against exploitation during emergencies.
