Kuwait has taken a significant step toward modernizing its digital economy by unveiling a new decree-law aimed at regulating the digital commerce sector. This legislative move is designed to bolster consumer protection measures and foster greater trust in online transactions, reflecting the government’s commitment to keeping pace with rapid technological advancements. The new legal framework, formally known as Decree-Law No. 10/2026, was officially published in Kuwait’s gazette, Kuwait Al-Youm, signaling the country’s readiness to address the complexities of e-commerce in a structured manner.
Under this newly introduced law, all businesses operating within the digital commerce space must now register with the Ministry of Commerce and Industry. This registration requirement ensures that the ministry can effectively monitor and regulate the sector, providing a centralized oversight mechanism. The ministry’s responsibilities extend beyond registration; it will also be tasked with issuing regulatory decisions, maintaining electronic registries of product and service providers, and setting the standards for registration processes and associated fees. This comprehensive approach aims to create a transparent and accountable environment for digital trade.
One of the key features of the decree is its emphasis on transparency and consumer rights. Providers of products and services in the digital marketplace are mandated to disclose essential information, including their basic data and the terms of any contracts. Additionally, they must issue electronic invoices and establish accessible channels for consumers to lodge complaints. The law also places a strong focus on data protection, requiring businesses to safeguard consumer information rigorously and implement cybersecurity protocols as prescribed by relevant authorities. These measures are intended to enhance consumer confidence and reduce the risks associated with online transactions.
The legislation dedicates an entire chapter to consumer protection in electronic contracts, explicitly recognizing consumers as the more vulnerable party in digital dealings. It grants consumers the right to amend any errors before finalizing contracts and provides a 14-day window for returning products after receipt or contract signing. Refunds must be processed using the original payment method without imposing additional charges in specified circumstances, ensuring fairness and convenience for consumers. Furthermore, the law introduces regulations for digital advertising, prohibiting false or misleading claims, content that contravenes public morals or order, unauthorized use of trademarks, and any statements likely to deceive consumers.
To address potential violations, the law allows businesses a 24-hour grace period to correct any breaches before further enforcement actions are taken. It also permits the use of influencers in advertising campaigns, provided that the nature of their contractual relationship is clearly disclosed and transparency is maintained to prevent deceptive practices. This reflects an understanding of modern marketing trends while safeguarding consumer interests.
In terms of documentation, the law grants legal validity to electronic documents, records, and signatures, as long as they comply with established regulations. It also outlines conditions under which electronic signatures can be revoked, adding a layer of security and trust in digital agreements. Service providers are required to adhere to cybersecurity standards issued by the Central Bank of Kuwait and other relevant bodies, regularly updating their systems to counter emerging threats. The law restricts electronic payment services to authorized electronic platforms and mandates that entities licensed by the Central Bank comply with these regulations. Importantly, it prohibits the imposition of extra fees for using electronic payment methods unless such charges align with official guidelines.
To ensure effective enforcement, the decree establishes two specialized committees: one dedicated to investigating and documenting violations, and another focused on resolving disputes between service providers and consumers. Serious infractions will be escalated to the Public Prosecution for further legal action. Penalties for violations include fines that double for repeat offenses, closure of offending businesses, and confiscation of equipment used in breaches. The law also holds the de facto manager of a company accountable if it is proven they were aware of the violations, emphasizing personal responsibility within corporate structures.
Finally, the law mandates that the relevant minister issue implementing regulations within one year of its publication in the official gazette. The provisions of the law will come into effect one month after these regulations are released, providing a clear timeline for businesses and regulators to prepare for compliance. This new legal framework marks a pivotal moment in Kuwait’s efforts to regulate its digital commerce sector, aiming to create a safer, more transparent, and consumer-friendly online marketplace.
