Saudi arabia ecommerce law


Saudi Arabia ecommerce law

Learn about the Saudi Arabia ecommerce law and whom it affects.

The Kingdom of Saudi Arabia introduced an ecommerce law that went into effect on October 24th, 2019.

Let’s decode this law and what it means for businesses selling goods to Saudi Arabia.

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 does the law affects 

The law applies to any ecommerce business that sells goods or services within Saudi Arabia, regardless if they are located in Saudi Arabia or not.

Businesses are required at a minimum to provide the following information on their website:

  1. Service provider’s name or any distinctive identification thereof
  2. Service provider’s address, unless registered with one of the e-shops authentication entities
  3. Service provider’s contact information
  4. Name and number of registration, if registered to a commercial registry or another publicly available record.
  5. Other information specified by the regulation

Notable highlights 

Article 5

  • The service provider may not keep personal data or electronic communications of the consumer unless agreed to otherwise between the service provider and consumer,
  • The only exception is during the period required for the ecommerce transaction to take place. During this period, the service provider must take responsibility for the protection and confidentiality of the consumers' personal data.
  • The service provider is also responsible for consumers' personal data protection when it falls under the control of any third parties.
  • The regulations will specify the relevant and important consumer personal data that must be kept confidential.
  • The service provider is not allowed to use consumers' personal data or electronic communications for any unlicensed or unauthorized purposes, or disclose them to third parties without the consent of the consumer, as required by law.

Article 7

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 related to the service provider
  • Basic characteristics of the products or services under contract
  • The total price, including all fees, taxes, or additional amounts related to delivery, if any
  • Payment, delivery, and implementation arrangements
  • Warranty information, if 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

The service provider must submit a receipt to the consumer after the conclusion of the contract that includes the following information:

  • Purchasing costs of each product or service
  • The total price, including all fees, taxes, or additional amounts related to delivery, if any
  • The date and place of delivery, in accordance with the regulations

Article 21

Violation penalties will vary depending on the type and impact of the offense committed. These penalties may include publication of the violation at the expense of the violator in one or more local newspapers issued in the violator’s place of residence or another suitable penalty.

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 new law

We observed many of the items listed in the law are ones that most businesses are already doing. Attempts to gain more specific information from The Ministry of Commerce have thus far been unanswered.

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