- ARAB NEWS
- 01 May 2025
Since 1975
Fatima Muhammad
JEDDAH: E-businesses that breach tough new laws on privacy standards and misleading advertisements will face fines of up to SR1 million ($265,000) under new regulations introduced this week in the Kingdom. The regulations apply to both local service providers and businesses outside the Kingdom which offer services and products to Saudi customers. E-businesses will also require a commercial license under the new laws.
E-businesses that breach the laws will be referred to a specialist three-member committee.
As well as hefty fines, businesses will face temporary or permanent closure and public naming in local newspapers. Businesses can appeal based on local law procedures.
In a move designed to ensure high privacy standards, the new laws will stop service providers from holding consumers’ personal information. All services and products will have to be provided along with invoices specifying purchase details. The regulations also ban misleading advertisements or the display of fraudulent products online.
Consumers can end a contract with an e-commerce business within seven days, but should pay any fees agreed with the business. They can also end the contract if delivery is delayed by 15 days (if no other period is specified in the contract).
FASTFACT
Mazen Al-Darrab, an e-commerce strategist, said that the regulations protect the rights of both consumers and e-businesses.
E-commerce accounts for only 4 percent of retail businesses, and did not represent a threat to retail outlets, he said.
Hotel and flight bookings, restaurants, electronics and perfumes are among the main sectors to move online. However, businesses lacking a digital outlet “are losing opportunities every day,” Al-Darrab said.
The Saudi Arabian Monetary Authority (SAMA) has introduced amendments to help e-businesses based in Saudi Arabia or operating in the Kingdom open bank accounts. Accounts can be opened within two days after the bank confirms their use for e-commerce purposes only.
