UAE: Can Shoppers Claim Refund for Defective Online Purchases?

Readers want to know what rights buyers have when e-commerce platforms deliver faulty products.

Question: I bought a new laptop from an e-commerce platform in the UAE. When I opened it, there were some hardware defects. I asked the company to refund the money because I no longer trust them. But the platform insists they will reissue a new laptop or repair it as it is under warranty. But I want my money back. What rights do I have in this case?

Answer: Pursuant to your queries, it is assumed that you have returned the laptop you purchased from an e-commerce platform in the UAE immediately within a few days due to technical defects. Therefore, the provisions of Federal Decree by Law No. 14 of 2023 Concerning the Modern Technology Based Trade, Federal Decree Law No. 50 of 2022 Issuing the Commercial Transactions Law and the provisions of Federal Law No. 15 of 2020 on Consumer Protection amended by Federal Law No. 5 of 2023 on Consumer Protection are applicable.

In the UAE, the buyer and seller must enter a contract or terms and conditions of sale. This is in accordance with Article 94 of the Commercial Transactions Law, which states,

“1. The parties to the contract of commercial sale shall define the following:

a. Description of the sold object in a specified and uncertainty removing way.

b. Specifying the price of the sold object and terms of payment.

c. Place and time of delivery.

d. Mechanism of service of notice and the domicile of choice in this regard.

e. Mechanism of resolution of disputes.

f. Any other terms and conditions agreed on by the parties.”

A seller or supplier of goods and services through e-commerce platforms needs to have valid approvals and licenses to conduct such activity in the UAE. This is in accordance with Article 25 of the UAE Consumer Protection Law, which states:

“1- Suppliers registered in the State and who work in the field of electronic commerce shall provide consumers and the competent authorities in the state with their names, legal status, addresses and licensing bodies, as well as adequate information in Arabic about the product or service provided, its specifications, and the terms of contract, payment, and warranty, in accordance with what is specified by the Implementing Regulation of this Law.

2- The Ministry or the competent authority is not considered responsible for electronic commerce operations that take place through suppliers unlicensed inside the state.”

Furthermore, it is the responsibility of a supplier of goods to refund the purchase price to a consumer in the event there is a defect in the product sold by a supplier. This is in accordance with Article 12 of the UAE Consumer Protection Law, which states,

“In the event that a malfunction is found in the goods or services, the supplier shall repair or replace the same, return the goods and refund its price, or re-perform the service without charge, in accordance with what is specified by the Implementing Regulation of this Law.”

A consumer may have the right to return the goods purchased from a supplier of goods if the same is defective. This is in accordance with Article 7(1) (b) (d) of the Modern Technology Trade Law, which states,

“1. Taking into account the previous Article of this Decree Law, the consumer has the right to return or request the replacement of goods and services purchased through modern technology, in any of the following cases.

b. Receive the goods and services that are defective, incomplete, damaged or received contrary to the stated description of the digital trader of the goods or services or regarding their condition or for any other reason that led to this before the consumer's receipt of the goods and services.

d. When the receipt of goods and services goes against the conditions and provisions specified in the digital contract or the terms and conditions announced by the digital trader.”

Based on the aforementioned provisions of law and the terms and conditions that you have agreed with the supplier, you may claim a refund of the purchase price paid to purchase the laptop from the e-commerce platform. In the event the supplier does not agree to refund the purchase price to you, then you may consider filing a complaint with the Dispute Resolution Committee set up by the UAE Ministry of Economy related to e-commerce transactions. The Dispute Resolution Committee may hear both you and the supplier and may issue a decision, and any of the parties may challenge the same decision through arbitration or by approaching any of the courts that have jurisdiction in the UAE. This is in accordance with Article 9 of the Modern Technology Trade Law.

News Source: Khaleej Times