ARTICLES & UPDATES

Summary:

The Consumer Protection Law (CPL) in Kuwait serves as a cornerstone for fair trade practices, prioritizing the safety and interests of consumers regulated by the Ministry of Commerce and Industry. This legislation emphasizes consumers’ rights to safe, good-quality products and services while holding businesses accountable for ensuring product safety and quality. The CPL provides overall protection for consumers, ensuring their protection against a wide range of issues related to the purchase and use of goods and services. 

Introduction:

Chapter one of the consumer protection law commences with definitions of the key terms incorporated within the Law. Chapter two provides for the establishment of the Consumer Protection Committee, and outlines its operational framework. Chapter three deals with the establishment of private societies for consumer protection. The rights of the consumers are specified under Chapter Four of the law. Chapter five outlines the vendor’s responsibilities. Chapter six deals with the manner of advertisement of goods and services. Penalties under the consumer protection law come under Chapter Seven.  Chapter eight and Chapter nine contain the general and final provisions of the Law.

Historical Context:

Kuwait’s journey towards Consumer Protection began in 1979 with the adoption of initial laws and regulations. This culminated in the landmark Consumer Protection Law No. 39/2014 and the Executive Regulation No. 27/2015. The CPL, comprising 37 articles, provides a comprehensive framework for safeguarding rights and establishing a robust system for their enforcement.

CORE CONSUMER RIGHTS UNDER CPL:

Articles 9 to 11 of Chapter 4 of the law outline consumer rights, that are as follows:

Article 9 defines the following rights:

• Right to safety– Consumers have the right to ensure that they stay safe when using any product or service and that no harm comes to them while using or enjoying the service. 
• Right to quality– Consumers have the right to be assured of satisfactory quality of products that can be used for their intended purpose.
• Right to be informed– Consumers have the right to receive clear and accurate information about products or services, including details about features, pricing, and terms.
• Right to fair settlement – Consumers have the right to a fair settlement for legitimate claims including compensation for misrepresentation, poor quality commodities, unsatisfactory services, or any practices that harm the consumer. 

Consumers have the right to seek redress when a product or service does not meet the expected standards. This includes repairs, replacements, or refunds, guaranteeing that consumers do not incur financial losses due to unsatisfactory products or services.

Article 10 The consumer has the right to return or replace a product and receive a full refund within 14 days of receiving it, without any additional cost, provided that the product is in the same condition as when purchased. 

This Article does not apply to perishable goods unless they are proven to be spoiled or expired at the time of purchase.

If a service is deficient or incomplete, the provider must either resolve the issue, reduce the price, or re-provide the service according to the contract terms and as per the commercial standards.

In case of disputes about defects, specifications, or service quality, the matter will be referred to the Committee, whose decision will be final and binding. 

Article 11 states that every clause in a contract or document related to contracting with a consumer shall be null and void if it exempts the merchant or service provider from any of their obligations or restricts the rights of the consumers under the Consumer Protection Law.

Vendors Responsibilities:

Article 12 of the law specifies that the producer, importer, or vendor must clearly label products in Arabic with the information required by Kuwait’s approved standard specifications or the Gulf Cooperation Council (GCC) standards and additional requirements set by law.

The information should be clearly written, easy to read, and appropriately displayed based on the product’s nature, and how it is advertised, displayed, or sold. In the case of services, the details including prices, features, and advantages should be communicated.

The vendors must guarantee the product or service provided, ensuring compliance with the sale contract or agreed terms.

Article 13 mandates vendors to display the price of each product, while service providers must indicate the cost of their services to consumers. 

No temporary discount or special offers on the price of the commodities can be made without approval from the Ministry of Commerce and Industry.

It is prohibited to advertise such discounts or offers without a license, or in a way that misleads the consumers or misrepresents the truth.

Article 14 defines return, refund, and replacement of a defective product. It stipulates that vendors must replace or refund defective products within the specified guarantee period or, in its absence, within a customary period. This obligation excludes perishable goods, customized items, books, newspapers, magazines, and software programs.

Article 15 deals with the issuance of invoices. Invoices must be written in Arabic, which should at least prove the dealings or contracting with the consumers and confirm the product, the date of sale and purchase, the price, the quantity, the type, and any other details specified in the Executive Regulations.

Article 16 states that the vendor must notify the committee within seven days after discovering or being aware of a defect in a product and its potential risks.

If the defect results in any damage to the health or safety of consumers, the vendor must immediately inform the committee, cease production or sales, recall the product, and warn consumers not to use it.

If requested by the consumers, the vendor shall replace or repair the product if possible, return or refund the full value at no extra cost, and compensate if they were harmed by using the defective product.

Article 17 indicates that the vendors are committed to providing after-sale services and the original spare parts for the period and method specified in the Executive Regulations of the law.

Article 20 states that without affecting the provisions of Law No. 10 of 1979 (Supervision on Trade In Goods and Defining Certain Prices) on the regulation of trading in goods, services, craftsmanship, and pricing, the vendor is required to compensate the consumer for any actual damages caused by defective goods, services, or products that do not meet the standard specifications or validity requirements.

Article 21 prohibits the vendors and service providers from selling or renting hazardous materials or products to individuals under 18. The executive regulation mentions hazardous materials and products.

Advertising for commodities and services:

Chapter six deals with Advertising for commodities and services. The CPL prohibits misleading advertisements. Businesses must ensure that their marketing messages are truthful and do not deceive consumers.

Article 22 mentions that the selling, offering, promoting, or providing of commodities or services using deceptive information and advertising corrupted or adulterated commodities are prohibited by the law.

Article 24 mentions in line with Law No. 10 of 1979, supervision on trade and pricing, and Law No. 10 of 2007 on competition protection, vendors are not allowed to conceal goods or refuse to sell them, with an intention to control the market price and they cannot force customers to buy specific quantities, or additional products, or charge more than the listed price.

Article 25 states that according to Article 22 of Law No. 3 of 2006( on press and publication), advertising goods and services is not allowed unless a license has been obtained from the relevant authorities

Article 26 added that the advertisement for commodities and services must be written in Arabic at a minimum as stated in Article 12 of this law and may also use other languages along with Arabic.

PENALTIES:

Chapter seven of the law prescribes penalties for violations of the Consumer Protection Law No. 39/2014, including fines and other legal actions, and Chapter 8 states that any condition or agreement weakening consumer rights or exempting merchants and service providers from their obligations is null and void.  

Article 27 of the law states the following details about the penalties under the law:

– without affecting the consumer’s right to compensation or any severe penalties provided by other laws, violations of Articles 12 to 19 – which detail the responsibilities of consumers and vendors – will be subject to one or more of the following penalties:

• A fine not exceeding 20,000 KWD.
• Imprisonment for up to two years.
• Or both penalties together.

– In case of subsequent offences, the penalties will be doubled. A person is considered a subsequent offender if they commit a similar violation within five years after completing their previous penalty.

– If the violation is committed by a legal entity, the responsible manager will face the same penalties if:

• They were aware of the violation.
• They failed to fulfill their managerial responsibilities, leading to the violation.
• They benefited from the violation.

The legal entity will be held jointly responsible for any financial penalties and compensation even if the violation was committed by an employee in his name or for his benefit. 

Article 28 explains that without prejudice to any severe penalty under other laws, any vendor who violates Articles 20 and 21 of this law shall face imprisonment for up to six months, a fine not exceeding 5000 KWD, or both penalties.

In case of subsequent offences, the offender shall be punished with imprisonment. A subsequent offender is defined as someone who commits a similar offence within three years after completing their previous sentence.

Article 29 specifies that without prejudice to any severe penalty prescribed under any other law, anyone who disposes of goods under custody shall be liable to imprisonment for up to two months, a fine equal to the value of the disposed goods, or both penalties.

In the event that the disposed goods are proven to be unfit for consumption or harmful to public health, both the fine and imprisonment shall be doubled.

Article 30 mentions that without prejudice to any severe penalty under any other law, any advertiser who violates Articles 25 and 26 of this law shall face imprisonment for up to six months, a fine not exceeding 5000 KWD or both penalties.

Article 31 says If a court convicts someone of a crime under this law, it may order the confiscation or destruction of the violating goods and tools used in their production, at the offender’s expense. Mandatory confiscation applies if the goods are defective, unsafe, or fail to meet quality standards.

The court may order the closure of the establishment responsible for the violation for 2 to 3 months. The ruling must also be published in two widely circulated newspapers.

Article 32 mentions that complaints about violations under this law can be filed by consumers, consumer protection associations, or the Union for Consumer Protection Societies. The Public Prosecution holds exclusive authority to investigate, prosecute, and independently handle these complaints.

Conclusion:

The Consumer Protection Law in Kuwait plays a crucial role in safeguarding consumer interests and promoting fair market practices. By understanding their rights and the obligations of merchants, consumers can make informed decisions and effectively address any grievances. 

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