Page 41 - MOE ENGLISH PR REPORT - JANUARY 2024

Press Release

 Incorporation of 14 contractual clauses that are deemed invalid in the contractual
relationship between the supplier and the consumer, through which, the supplier may
seek exemption from his responsibilities, or any obligations outlined in the law and its
regulations towards the consumer.
 Ensures the creation of a safe and suitable environment for both consumers and
merchants when entering into purchasing agreements or receiving services. This
ensures that both parties have full awareness of their rights and responsibilities, which
positively impacts the business environment improvement, service quality
enhancement, product availability, and consumer satisfaction.

Re-balancing of the contractual relationship between customers and merchants by detailing
the supplier’s obligations

H.E. highlighted that the new amendments to the law and its executive regulation have contributed
to re-balancing the contractual relationship between customers and suppliers, making it more
equitable and balanced. Suppliers’ obligations while selling products or services are set forth in
more detail and a larger number of obligations are now specified. Thus, it obviates all unfair
conditions that impact consumers in their contractual relationship with suppliers and brings more
predictability and security in their relations.

Besides, H.E. explained that such obligations provide comprehensive mechanisms and procedures
regulating fair trade practices. They include supplier’s obligations on the provision of substitute
goods, contracting, warranties implementation, spare parts and their mechanism and repair;
obligation to repair products with warranty and the periodic repair of products with warranty. Also
covered are the supplier’s obligation upon discovering a defect in a product and reporting returns
of products. Other obligations are also set forth in the regulation, including those concerning
various categories of products and services.

New obligations on the supplier regarding spare parts, repair, and replacement of goods
within specific periods of time

For the first time, supplier’s obligations regarding necessary spare parts and goods repair are
detailed according to the nature of the customer demand. Furthermore, new mechanisms that
regulate the examination of goods at laboratories are specified in case a dispute arises between the
customer and the supplier on the quality of goods. This enhances the deterrent measures that help
ensure the supplier’s obligation and consumer’s rights. For the first time, a seven to 30 days
window has been determined to ensure the supplier’s obligation to provide spare parts or substitute
goods, if a defect is found in goods provided.

A comprehensive list of penalties & fines for violations