Federal Decree-Law No. 14 of 2023 on Trading by Modern Technological Means is a significant regulation governing digital transactions in the UAE. This law provides strong protections and assurance for consumers who participate in online transactions. In accordance with Article 5 of the aforementioned law stipulates that the companies are required to obtain the approval, permit and licence from the relevant authority. Additionally, this article specifies the specific conditions that must be met in order to obtain a license. Further, the law imposes the obligation to the companies to sell only products and services that are permitted by the law and to maintain a technically safe trading environment. Companies must also ensure clear communication regarding the terms and conditions of digital transactions such as clear disclosure of pricing, product details, and terms of service, ensuring consumers have all necessary information before making a purchase.
Companies need to make sure that the terms and conditions of the online transactions are explained properly. In order to protect the consumer’s right to truthful and accurate information, the companies are obligated to give accurate information about their goods and services which is stipulated under Article 6. Customers have a right to receive the products and services that meet the terms and specifications that are advertised. In addition to this, customers should be able to use secure methods to purchase goods, simple methods to avoid receiving marketing messages, and clear means to rate and review their experiences.
Consumers are entitled to receive reliable contact information and submit complaints in order to resolve the matter. Additionally, licenses, contact information, and physical addresses must be made publicly available by digital merchants.
Consumers can return goods if they are defective, damaged, not as described, or if delivery is delayed beyond usability. Returns are also permitted if the goods or services violate the terms of the digital contract, which is stipulated under Article 7. However, the customer loses the right to return goods if they have been used, if they fail the three-week permissible return period, or if the goods are perishable or can’t be returned as specified by the ministry.
Furthermore, Article 8 states that during the process of purchasing the product or services through online platforms, customers must use legitimate and recognized online platforms to avoid abuse, protect their right to return, and carefully understand the terms of the contract and the product specifications. In addition, timely payment is required for all goods and services that have been purchased, which is also explained in Article 8 as consumer obligations.
Companies Must Implement E-Security Measures
A significant aspect of the Decree Law is e-security, which reinforces the necessity of companies taking strong precautions to safeguard online transactions from fraud and other cyber threats. To keep sensitive data safe, this includes encryption protocols, safe payment gateways, and regular security checks.
Article 11 outlines the responsibilities of businesses in promptly reporting security incidents or data breaches to the appropriate authorities.
Digital transactions raise serious concerns about data privacy, which is why Federal Decree-Law No. 14/2023 imposes stringent data protection standards.
Article 5 of the aforementioned law stipulates guidelines and requirements for protecting and securing consumer information and data, as well as prohibiting companies from sharing or retaining without the consumer’s consent.
Article 13 states that in order to further enhance data protection, companies are obligated to implement measures for data confidentiality and secure storage.
Conflict Settlement Processes
The Decree-Law details the procedures for handling disputes that may arise as a result of the application of its provisions in Article 9. Dispute Resolution Committees may be established by the Ministry or the Competent Authority within the Emirate to resolve disputes concerning the Decree Law. In the event that any disagreements arise out of the Decree-Law, the Ministry or the Emirate’s Competent Authority may form a Dispute Resolution Committee to handle such matters.
In accordance with the decision to establish this committee, it will hold a structure for operation and clearly defined responsibilities
Furthermore, the Ministry is also authorized to form such a committee, working together with the Competent Authority, to advance the Decree-Law’s objectives and protect consumer interests.
Arbitration is also permissible as a method of dispute resolution under Article 9. As long as the Decree-Law’s provisions are not in conflict with existing arbitration agreements, disputes may still be submitted to arbitration. However, arbitration clauses are not permissible in digital agreements valued at less than AED 50,000. The decision of the Dispute Resolution Committee will be considered null and void if arbitration is initiated after the Committee’s decision. Unless arbitration has been previously agreed upon, the resolution issued by a Committee is considered the final resolution.
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