LOC18:43
15:43 GMT
KUWAIT, Feb 22 (KUNA) -- Decree-Law No. (10) of 2026 on regulating the digital commerce sector was issued on Sunday, in line with global transformation trends and aimed at achieving a balance between encouraging innovation and ensuring consumer protection, transparency and fairness in transactions.
The decree-law establishes a comprehensive legislative framework governing digital commerce activities in Kuwait, enhancing confidence in digital transactions and creating a secure and competitive environment.
The legislation takes into account related laws on online transactions, consumer protection, copyright and related rights, cybersecurity and competition protection.
The decree-law comprises 45 articles distributed across 10 chapters, addressing integrated regulatory, procedural, supervisory and penal provisions related to the organization of the digital commerce sector.
The Ministry of Commerce and Industry has been entrusted with regulating the sector and overseeing the implementation of the decree-law.
The decree-law outlines mandatory disclosures that product or service providers must make on their online platforms.
It also grants consumers the right to cancel or amend the portion of a contract affected by an error made during electronic contracting if the system does not provide a mechanism to correct such errors, in accordance with specified controls.
Consumers are further granted the right to withdraw from a contract within 14 days of receiving a product, or to exchange or return it and recover its value through the same payment method or another agreed method without additional cost, provided the product remains in its original condition at the time of purchase, except in specified cases.
The law regulates advertising and promotion in digital commerce due to its direct impact on trust in digital transactions.
Advertisements must include clear information on the product or service provider, pricing, specifications and contact details, in addition to other data specified by executive regulations. Misleading, false or unlawful advertisements are prohibited.
Under the decree-law, providers are required to comply with cybersecurity standards in force in Kuwait and to periodically update data protection systems to address emerging cyber threats.
They are also obligated to deal exclusively with electronic payment service providers licensed by the Central Bank of Kuwait and are prohibited from imposing additional fees for the use of electronic payment methods without prior approval from the Central Bank.
To ensure effective oversight and proper enforcement, the decree-law establishes two specialized committees.
The first, the Violations Committee, is tasked with reviewing violations, referring or dismissing them, or approving settlements.
The second, the Digital Commerce Dispute Settlement Committee, is responsible for resolving disputes between providers and consumers, imposing financial penalties stipulated in the executive regulations, or referring criminal violations to the Public Prosecution.
Decisions of both committees are deemed final and enforceable in accordance with the executive regulations.
The decree-law also includes several penal provisions, stipulating imprisonment or fines for violations of key articles, with the possibility of doubling penalties in cases of repeat offenses.
It permits the confiscation of tools used in committing crimes or proceeds derived therefrom, as well as the closure of violating online stores where knowledge of the violation is established.
It further establishes the liability of the actual manager of a legal entity if proven to know of or benefit from the violation and allows reconciliation in stipulated crimes under specific controls to ensure procedural flexibility and reduce the burden on the judiciary.
Certain Ministry employees are granted judicial authority to detect and document crimes and violations under the decree-law. The Ministry of Commerce and Industry is required to publish executive regulations and decisions in the Official Gazette and on its website.
The decree-law will enter into force six months after its publication in the Official Gazette, allowing the Ministry time to prepare for its implementation. (end)
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