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.
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
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.
Decoding Saudi Arabia's ecommerce law
Many of the requirements outlined in the law reflect standard business practices already in place. Attempts to obtain more detailed information from The Ministry of Commerce have, so far, been unsuccessful.
Saudi Arabia
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.
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:
Notable highlights
Article 5: Data protection
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:
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:
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:
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.
Many of the requirements outlined in the law reflect standard business practices already in place. Attempts to obtain more detailed information from The Ministry of Commerce have, so far, been unsuccessful.
Was this page helpful?