In United Arab Emirates; a new federal consumer protection law has been promulgated. Under which a consumer protection committee formed to monitor the prices of consumer goods. The provisions of the laws advocate the principle of healthy competition and fighting monopoly and commercial fraudulence.
The new legislation is complementing other laws concerning civil procedures, commercial fraudulence, commercial agencies, industry organization and trading in precious gems and metals.
Disregarding any provisions of these laws could lead to violation of other related laws and this itself is enough to ensure strict enforcements.
The law No: 6 of 2006 covers and tackles issues relating to the rights of consumer, responsibilities and liabilities and specifying penalties to be imposed on people for selling substandard goods.
Under the law, a consumer protection higher committee will be constituted under the chairmanship of the Minister of Economy. The Committee will also comprise of representative of the Consumer Protection Societies. The Committee formation and determination of its powers will be decided by a resolution of the cabinet.
In case of a crisis or extraordinary circumstances in the market leading to price hikes, the minister will recommend procedures to curb such price increases and protect consumer’s interests.
A new Consumer Protection Department (CPD) will also established at the Ministry of Economy (MOE) with a mandate to supervise the execution of the general policy for the protection of consumer in cooperation with the authorities.
The Key responsibilities of CPD includes;
1. To supervise the implementation of policies designed to protect Consumers in cooperation with the concerned authorities in the State.
2. To coordinate with the concerned authorities in the State in order to cope with the unlawful commercial practices detrimental to the Consumer.
3. To coordinate with the concerned authorities to heighten Consumer awareness in the State about the commodities and Services, along with having the Consumers acquainted with their rights and the methods of the claims thereof.
4. To monitor Price movements and curb Price increases.
5. To achieve the principle of the honest competition and fight monopoly.
6. To receive complaints from Consumers and refer them to the concerned authorities or otherwise take the necessary action(s) prescribed in the Department’s mandate. A Complaint may be filled directly by the Consumer or through the consumer protection association, when such acts as the representative of the particular Consumer.
7. To publish and distribute the decision and recommendations designed to raise Consumer awareness.
The key responsibilities of the (CPD) includes increasing the consumer’s awareness, monitor the movement of prices and control their increase, combat monopoly, to receive consumers complaints and adopt appropriate action.
The law states that the Provider shall upon offering any commodity to consumers shall prominently display in the cover of the commodity or on the packet a label the particulars of the product including date of production,or packing, net weight, country of origin, expiry date, compnents and specifications of product etc. The Provider shall also prominently display the price of the product either in the label or at the place where the commodity is displayed. The consumer shall also have the right to receive a dated bill for the product with paticlulars such as price, type etc. The laws warrants the conformity of the product or the service provided to the consumer with the declared and approved standardized specifications. As per the law, the supplier is prohibited to display or promote counterfeited commodities that would inflict damages or losses on consumers.
According to the new law, a consumer will be entitled to be indemnified against personal or financial damages in accordance with the...