Amiri Decree establishes comprehensive framework for online trade, consumer protection

An Amiri decree-law No. (10) of 2026 regulating work in the digital commerce sector was issued on Sunday, marking a significant legislative step aimed at keeping pace with global digital transformation while ensuring a balance between encouraging innovation and protecting consumers through transparency and fairness in transactions.

The decree-law establishes a comprehensive legislative framework governing digital commerce activities in the State of Kuwait, with the objective of enhancing confidence in online transactions and creating a secure and competitive environment that promotes investment and innovation.

The measure also supports the goals of Kuwait’s national development vision, New Kuwait 2035, particularly in advancing digital transformation and sustainable economic growth.

The new law considers existing legislation related to electronic transactions, consumer protection, copyright and neighboring rights, cybersecurity and competition protection, ensuring integration with the country’s broader legal system.

Comprising 45 articles distributed across 10 chapters, the decree-law sets out regulatory, procedural, supervisory and punitive provisions governing the digital commerce sector.

The Ministry of Commerce and Industry has been tasked with regulating the sector and supervising the implementation of the law and its executive regulations. The provisions stipulate that no individual or entity may engage in digital commerce activities without registering in the official records designated by the ministry.

The law obliges product and service providers to clearly disclose essential information within their electronic stores, including details related to goods and services offered. It also grants consumers the right to cancel or amend transactions if an error occurs during electronic contracting and the platform does not provide a mechanism to correct such mistakes, subject to specific regulatory controls.

Consumer protection provisions allow buyers to withdraw from a contract within 14 days of receiving a product, or to request replacement or return with a refund through the same payment method or another agreed-upon option, without additional charges, provided the product remains in its original condition except in specified cases.

The decree-law also regulates digital advertising and promotional activities due to their direct impact on trust in online transactions. Advertisements must include clear and accurate information about the product or service provider, pricing, specifications and contact details, while strictly prohibiting false or misleading content.

In the area of cybersecurity, providers are required to comply with national cybersecurity standards and regularly update data protection systems to address emerging threats. The law further obliges businesses to use only electronic payment service providers licensed by the Central Bank of Kuwait and prohibits imposing additional fees for electronic payment methods without prior approval from the bank.

To strengthen oversight and enforcement, the decree-law establishes two specialized committees. The Violations Committee will review and process recorded violations, including settlement procedures, while the Digital Commerce Dispute Settlement Committee will handle disputes between consumers and service providers, impose financial penalties, or refer criminal violations to the Public Prosecution.

Decisions issued by both committees will be final and enforceable in accordance with executive regulations.
The law introduces a range of penalties for violations, including imprisonment or fines, with harsher penalties in cases of repeated offenses. Authorities may also confiscate tools used in committing violations, seize illicit proceeds and order the closure of offending digital stores when liability is established.

The provisions further hold the actual manager of a legal entity accountable if proven to have knowledge of or benefited from violations, while allowing reconciliation in certain cases to enhance procedural flexibility and reduce pressure on the judicial system.

Additionally, selected employees of the Ministry of Commerce and Industry will be granted judicial officer status to investigate crimes and violations stipulated under the law.

The ministry is required to publish executive regulations and implementing decisions in the Official Gazette and on its official website. The decree-law will enter into force six months after its publication, allowing sufficient time for preparations necessary to implement its provisions.