What the law entails
This new law consists of 26 articles that are intended to regulate ecommerce transactions and protect consumers from fraud and deception.
Who the law affects
The law applies to any ecommerce business that sells goods or services within Saudi Arabia, regardless of whether the business is located inside the country or not.
Businesses are required at a minimum to provide the following information on their website:
- The service provider's name or any distinctive identification
- The service provider's address, unless registered with an e-shop authentication entity
- The service provider's contact information
- Registration name and number, if registered with a commercial registry or another publicly available record
- Any other information specified by the regulations
Article 5: Data protection
- The service provider may not retain a consumer's personal data or electronic communications unless explicitly agreed upon with the consumer.
- An exception exists during the period required for the ecommerce transaction to be completed. During this time, the service provider is responsible for protecting and maintaining the confidentiality of the consumer's data.
- The service provider is also responsible for data protection when third parties handle the consumer's personal information.
- Regulations specify which types of consumer personal data must be kept confidential.
- The service provider cannot use or disclose consumer data for unauthorized purposes without the consumer's consent, as required by law.
Article 7: Contract transparency
The service provider must provide a statement to the consumer that clarifies the terms and conditions of the contract to be concluded. This statement needs to include the following:
- Procedures to be followed to conclude the contract
- Information about the service provider
- Basic details of the products or services under contract
- The total price, including all fees, taxes, and delivery charges, if applicable
- Payment, delivery, and implementation arrangements
- Warranty information, if applicable
- Any other information specified by the regulations
The regulations will specify the necessary data requirements that must be submitted by the service provider, based on the nature of each operation.
Article 8: Receipt requirements
The service provider must submit a receipt to the consumer after the conclusion of the contract that includes the following information:
- The purchase cost of each product or service
- The total price, including all fees, taxes, and delivery charges, if applicable
- The date and location of delivery, in accordance with the regulations
Article 21: Penalties for violations
Violation penalties will vary depending on the type and impact of the offense committed. Penalties for violations vary depending on the severity and impact of the offense. They may include:
- Publication of the violation in one or more local newspapers at the violator's expense
- Other penalties deemed appropriate under the circumstances
The publication of the violation will not take place until after the penalty decision is final or rendered not subject to appeal by the end of the specified appeal period.
Saudi Arabia ecommerce law
Learn about Saudi Arabia's ecommerce law and who it affects.
Saudi Arabia's ecommerce law, which went into effect on October 24, 2019, regulates online transactions and sets requirements for businesses selling goods or services to customers in the country.