SAUDI ARABIA

Over 100 e-commerce violations in 2020; penalties include fine of SR1mn  

November 23, 2020



Saudi Gazette report

DAMMAM — Saudi Ministry of Commerce said that it has detected more than 100 e-commerce violations during the year 2020 and the violations were referred to the concerned committee to be examined prior to taking punitive measures against the violators.

The penalties include up to SR1 million in fine; halting of the e-commerce activity temporarily or permanently, blocking the site of the e-store partly or totally, according to a report in Al-Watan newspaper.


The major e-commerce violations include the failure to obtain commercial registration of the e-store and non-compliance of the regulations related to e-advertisement. The ministry said that the E-Commerce Law stipulates that those who run e-shops shall abide by all the rules of the contract as well as terms and conditions. These include fulfilling procedures of concluding the contract, details of e-store, features of the e-product/service, total price inclusive of taxes and fees and delivery charge in case of home delivery, payment procedures, delivery and guarantee details if any.

The ministry said that violations will be referred instantly to the committee, which will determine if any violations of the E-Commerce Law have taken place. The ministry has slapped penalties against 44 e-stores for violating the provisions of the E-Commerce Law and its executive regulations. The penalties start with a warning, and then a fine of a maximum SR1 million, stopping activities of e-store temporarily or permanently, blocking the site of the e-store partly or fully either temporarily or permanently and that will be in coordination with the concerned authorities.

The ministry referred the case of an owner of an e-store selling mobile phones to the security agencies. This was after finding fault with him for offering mobile phones at cheaper rates to customers after advertising about it by using the good office of some influential people on social media. It was found that the man received money amounting to more than SR4 million from customers but did neither deliver the product nor refund it during the specific period prescribed in the law.


November 23, 2020
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