Kuwait has taken a significant step towards modernizing its digital economy by enacting a new decree-law aimed at regulating the digital commerce sector. This legislation, officially known as Decree-Law No. 10/2026, was recently published in the country’s official gazette, Kuwait Al-Youm, marking a milestone in the nation’s efforts to create a safer and more transparent environment for online business activities.
The new legal framework is designed to keep pace with the rapid advancements in digital technology and the growing importance of e-commerce in Kuwait’s economy. It introduces a robust set of rules and guidelines that govern how digital commerce operates, with a strong emphasis on protecting consumers and fostering trust in electronic transactions. This move comes as part of Kuwait’s broader strategy to diversify its economy and encourage digital innovation.
One of the key provisions of the decree-law is the mandatory registration of all businesses operating within the digital commerce sector with the Ministry of Commerce and Industry. This requirement ensures that the ministry can effectively monitor and regulate online commercial activities. The ministry is tasked with a broad range of responsibilities, including the enforcement of the law, issuing necessary regulatory decisions, and establishing electronic registries for both product and service providers. Additionally, the ministry will set up clear registration procedures and determine applicable fees to streamline compliance.
The legislation also places strict obligations on digital commerce providers. They must disclose essential information about their identity and contractual terms to consumers, issue electronic invoices for transactions, and establish accessible mechanisms for handling customer complaints. Furthermore, the law mandates stringent consumer data protection measures and cybersecurity protocols, which must align with standards issued by relevant authorities. This is aimed at safeguarding sensitive information and preventing cyber threats that could undermine consumer confidence.
A notable feature of the law is its dedicated chapter on consumer rights in electronic contracts. Recognizing the inherent imbalance between consumers and digital service providers, the law grants consumers several protections. For instance, consumers have the right to correct any errors before finalizing contracts and can return purchased products within 14 days of receipt or contract signing. Refunds in such cases must be processed using the same payment method without imposing additional charges, ensuring fairness and transparency in digital transactions.
The decree-law also introduces regulations governing digital advertising practices. It explicitly prohibits the dissemination of false or misleading information, content that contravenes public order or morality, unauthorized use of trademarks, and any statements that could deceive consumers. Businesses are given a 24-hour window to rectify any violations before authorities take further action. Additionally, the law permits the use of social media influencers in advertising campaigns, provided that the nature of their contractual relationship is clearly disclosed and no deceptive practices are promoted, fostering transparency in digital marketing.
In terms of documentation, the law grants legal validity to electronic documents, records, and signatures, provided they comply with established regulations. It also outlines the conditions under which electronic signatures may be revoked, offering clarity and legal certainty for digital transactions. Service providers are required to implement cybersecurity standards issued by the Central Bank of Kuwait and other relevant bodies, regularly update their systems to counter emerging threats, and limit electronic payment services to authorized electronic platforms.
The law further mandates that entities licensed by the Central Bank adhere strictly to these regulations, while prohibiting the imposition of additional fees for electronic payments unless explicitly allowed under the guidelines. To ensure effective enforcement, the decree-law establishes two specialized committees: one dedicated to investigating and documenting violations, and another focused on resolving disputes between consumers and service providers. Serious infractions will be escalated to the Public Prosecution for legal action.
Penalties for breaches of the law are stringent, including fines that double for repeat offenses, closure of offending businesses, and confiscation of equipment used in violations. The law also holds the de facto manager of a company accountable if it is proven they were aware of the breach, emphasizing corporate responsibility. The concerned minister is required to issue implementing regulations within one year of the law’s publication, and the law itself will come into effect one month after these regulations are released, allowing time for businesses to prepare for compliance.
This comprehensive legal framework reflects Kuwait’s commitment to fostering a secure, transparent, and consumer-friendly digital commerce environment. It aligns with global trends in e-commerce regulation and positions Kuwait as a forward-thinking player in the digital economy, ready to protect its consumers while encouraging innovation and growth in the sector.
