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Misleading advertisments to be criminalized
Published in The Saudi Gazette on 18 - 10 - 2011


National center proposed to
monitor pricesRIYADH – The government is currently studying a proposed consumer protection law that criminalizes misleading advertisements and calls for the establishment of a national center to monitor price hikes.
A government committee is studying the draft law which was proposed by the National Society for Human Rights (NSHR), according to a report in Al-Sharq Al-Awsat. This comes in the wake of nationwide outrage over price increases in the Kingdom.
The Ministry of Commerce and Industry has been at the forefront of the consumer campaigns and has forced traders and producers to reduce the prices of dairy products and bottled water.
The proposed law was initially submitted to the King. It was then referred to the Ministry of Commerce which suggested that a committee look at it. The committee had been drafting a similar law. NSHR members are part of the committee.
The proposed law has 49 articles and 12 goals. The legislation criminalizes “misleading advertisements”. It also calls for establishing a national center to monitor prices and for giving citizens the right to object to more than a five percent yearly rise in prices of real estate and commodities and services.
Other goals to protect the consumer include regulating the safety of products and ensuring buyers build trust with suppliers.
The draft law also stipulates that disputes be mediated if a consumer makes this request. In addition, all contracts should be written in Arabic. The national center to monitor prices should be given the power to study all contracts and to amend or revoke those that are deemed to be unjust.
Consumers will have the right to seek damages for products that do not meet set specifications and criteria. They will also have the right to “obtain the correct information about the commodities they buy”. Within 15 days of purchasing the commodity or subscribing to a service, consumers “have the right to return the commodity and get their money back or have the commodity replaced with another”. This will be under the condition that the consumer is not at fault in any way.
The draft law also gives the consumer the right to “file lawsuits against any practice that violates or limits his or her rights”.


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