Saudi Arabia to Issue E-commerce System

  • 7/2/2019
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Saudi Arabia plans to issue a new e-commerce system to further organize the relationship among the concerned parties in the sector in light of the growth of e-commerce in the country. The Kingdom is considered one of the 10 fastest growing states in e-commerce around the world. E-commerce is also one of the pillars of the Kingdom’s Vision 2030 under the National Transformation Program, and a major contributor to its economy. The system is expected to be issued soon through a project set up by the Ministry of Commerce and Investment, aiming at supporting and developing e-commerce, enhancing confidence in the sector and providing consumer protection against fraud, deception or misinformation. Meanwhile, the system will be applied on all parties that practice e-commerce in Saudi Arabia or provide goods or services within the country. It includes significant provisions regarding consumer protection. The e-commerce seller or provider of services is required to provide consumers with a clear and understandable statement on the contract’s terms and conditions through technical steps that the consumer must follow to purchase a commodity or service. The system also adds information on the service provider, description and prices of its services and goods, including any additional fees, payment and delivery arrangements and implementation. Furthermore, it calls for the submission of an invoice to the consumer showing the price of the product or service. It requires the service provider, practicing a profession subject to a specific regulation and requiring a license or authorization, to submit information on the professional entity or organization the provider has registered in, the applicable professional title, the country in which this title was granted and any other information the Ministry of Commerce and Investment considers important for consumer protection. The system warns an e-commerce practitioner from making ads containing false information, claims that directly or indirectly deceive consumers or publishing a logo or trademark with no copyright. The Ministry of Commerce and Investment has the right to force any side not complying with the conditions to withdraw the advertisement within one working day after notification, in addition to blocking the violator in case of failure to heed the request. It also has the right to issue a statement on the violation in coordination with the Communications and Information Technology Commission.

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