UAE Is All Set To Introduce Penalties On Retailers.
The UAE intends to enact new legislation to penalize shops who raise prices illegally. The new rule will serve to protect customers from price gouging and would require retailers to follow fair pricing practices. Retailers who are found to be raising prices unfairly may face hefty penalties, including fines and potentially the suspension of their commercial license, under the new rule. The regulation will apply to all UAE merchants, including internet stores and supermarkets.
The need to enact this new regulation follows reports of some shops exploiting the COVID-19 outbreak to raise prices on necessary commodities such as food and medical supplies. Consumers and the government are concerned, spurring the need for stronger rules. The new rule would also force retailers to clearly and prominently display prices, as well as to ensure that prices are not increased without a solid reason, such as an increase in the cost of production or transportation.
The UAE’s Ministry of Economy is working on revising federal law No. 15 of 2022 on consumer protection, which will include considerably more information, such as precise sanctions for stores and other establishments that violate customers’ rights. In 2022, the ministry conducted 94,123 inspections and discovered 4,227 breaches. In 2023, the number of inspections during the first few months of the year was 8,170, with 1,030 breaches recorded.
In response to recent requests from retailers to raise item prices, he stated that a new process has been developed to validate and justify price increases by hiring external specialized audit groups to guarantee that the ministry is on the correct track to grant authorization for price modification. During a news conference in Dubai on Thursday, Al Shamsi emphasized that the ministry guarantees that suppliers do not apply unreasonable price increases; improves measures to oppose monopoly tactics; and encourages sound trade practices.
In 2023, the Ministry of Economy had 26 meetings with basic commodity suppliers such as rice, wheat, sugar, meat, chicken, fish, dairy products, juices, and others to ensure that sufficient supplies of these commodities are available to satisfy the needs of Ramadan consumers.
Daily fruit and vegetable consumption in Dubai has reached 19,000 tones, while fruit and vegetable exports in Abu Dhabi have reached over 6,000 tones. According to the ministry, the current supply of fruits and vegetables is 143,000 tones. Al Shamsi recommended consumers to practice mindful shopping behaviors, such as saving the invoice, as the first step in ensuring their rights and matching them with what they purchased.
The new rule would also force retailers to clearly and prominently display prices, as well as to ensure that prices are not increased without a solid reason, such as an increase in the cost of production or transportation. The implementation of this new regulation is expected to provide more consumer protection and promote fair competition among merchants. It will also help to keep the UAE appealing to investors and enterprises by offering a stable and predictable economic environment. Overall, the implementation of this new regulation is a step forward in safeguarding consumers and fostering ethical corporate practices in the UAE.
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