The Kuwait e-commerce law marks a major shift on how the country regulates online business activity. Moreover, the new decree establishes a clear legal structure for digital trade. Authorities aim to protect consumers while encouraging innovation and investment. Therefore, lawmakers designed the legislation to align with Kuwait’s Vision 2035 development strategy.
The decree contains 45 articles divided into 10 chapters. It outlines regulatory, supervisory, and penalty provisions for online commercial activities. Additionally, it assigns oversight responsibilities to the Ministry of Commerce and Industry. Businesses must register in official records before operating in the digital sector.
The Kuwait e-commerce law requires online sellers to provide full disclosure. They must clearly display prices, specifications, and contact information. Furthermore, digital stores must ensure transparency in advertising. The law prohibits misleading or false promotional claims.
Consumers now receive stronger protections under the new framework. For example, buyers can cancel or amend transactions when electronic systems fail to provide correction options. In addition, customers may withdraw from a contract within 14 days of receiving a product. They can return or exchange items if they remain in original condition.
Refunds must follow the original payment method unless both parties agree otherwise. Importantly, sellers cannot impose extra charges during the refund process. This rule strengthens trust between businesses and customers.
The legislation also focuses on cybersecurity standards. Online platforms must update data protection systems regularly. They must also use electronic payment providers licensed by the Central Bank of Kuwait. If businesses wish to impose extra electronic payment fees, they must secure prior approval.
To enhance enforcement, authorities established two specialized committees. One committee reviews violations and proposes settlements. The second committee resolves disputes between providers and consumers. It can impose financial penalties or refer serious cases to prosecution.
Penalties include fines and possible imprisonment for severe violations. Repeat offenders may face doubled penalties. Authorities can confiscate tools or proceeds linked to illegal activity. They can also shut down non-compliant online stores when evidence confirms wrongdoing.
The Kuwait e-commerce law also holds company managers accountable. If managers knowingly benefit from violations, authorities may impose liability. Certain ministry officials now have judicial authority to document offenses.
The decree will take effect six months after publication in the official gazette. During this period, regulators will finalize executive regulations. Meanwhile, businesses must prepare to comply with the updated requirements.
Ultimately, the legislation seeks to balance digital growth with consumer protection. By setting clear standards, Kuwait aims to strengthen confidence in online commerce. As digital trade expands globally, the country positions itself as a regulated and secure marketplace.
