Tough consumer protection law on July 1

The UAE will begin enforcing tough measures against market manipulation involving fines of up to Dhone million on July 1 with the aim of protecting local consumers, an economy official was reported on Thursday as saying.

Hashim Al Nuaimi, director of the consumer protection division at the ministry of economy, said the new federal law includes radical changes that will serve the interests of both consumers and dealers, adding that it is designed to curb market offences and bolster confidence between consumers and traders.

“The new law will be enforced on July 1 after it was approved by the cabinet….the law is not intended to control traders but to create an atmosphere of transparency in the market, end monopoly policies and prevent practices aimed at jeopardizing the country’s economy,” he said at a meeting in Fujeirah.

“The main feature of the new law is that it involves much more stringent punitive measures as it raises the maximum penalty against offenders to Dhone million instead of Dh100,000 in case of monopoly of certain products or trading in counterfeit items in the country.”

In a statement last week, the ministry of economy said it would not allow dealers to manipulate or control consumers and ruled out any move by the higher committee for the consumer’s protection to approve requests by suppliers to raise the prices of some products this year.

The ministry said its anti-manipulation actions had ensured market stability, adding that prices of consumer products in the UAE are the lowest in the Gulf despite the absence of subsidies enforced in other Gulf nations.

“The UAE will not allow traders to manipulate consumers at will….the government will continue to intervene in consumer prices to ensure maximum protection for the consumers in the country.”

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