In a significant step to enhance transparency and protect consumer rights in the Saudi market, the Consumer Protection Association the results of its monitoring program, "Verifying Economic Operator Compliance," revealing 1,055 instances of non-compliance with applicable regulations and legislation in the Kingdom. These efforts are part of the Kingdom's drive to improve the quality of services provided and build a reliable commercial market in line with the goals of Saudi Vision 2030.
Historical background and ongoing efforts
The Consumer Protection Association in the Kingdom of Saudi Arabia was established by a Cabinet decision in 1428 AH (2008 CE) with the aim of safeguarding consumer affairs, defending their rights, and protecting them from all forms of fraud, counterfeiting, and deception. With the tremendous growth witnessed in the e-commerce sector in recent years, particularly after the COVID-19 pandemic, the need has become urgent to intensify oversight of online stores and retail outlets to ensure their compliance with regulations that protect the rights of all parties. This program falls within a broader strategic framework aimed at making the Saudi market an attractive environment for investment and safe for consumers, thereby strengthening the national digital economy.
Program details and results
The association explained that the verification program targeted 430 online stores and 552 retail outlets during the period from the fourth quarter of 2023 to the first quarter of 2024. The methodology employed rigorous approaches, including mystery shopping, on-site visits, and online inspections to assess the actual level of compliance. The results showed that only 85 online stores demonstrated full compliance with the standards, while 1,055 violations were detected in the remaining stores.
The most prominent violations observed in online stores focused on:
- The online store is not documented on approved platforms.
- Violation of the policy for protecting consumer personal data.
- Lack of a clear privacy policy.
- The product card displayed is missing information.
- Failure to comply with the legally stipulated return and exchange policies.
- The national address data was not added clearly.
Importance and expected impact on the market
These efforts are of paramount importance on several levels. Locally, they contribute to raising consumer awareness of their rights and enhancing their confidence in dealing with stores. They also encourage businesses to correct their commercial practices and comply with regulations, thus creating a fair competitive environment. Regionally, these initiatives position the Kingdom among the leading countries in consumer protection and e-commerce, potentially setting a model for the region. Internationally, a regulated and transparent market enhances the Kingdom's attractiveness to foreign investment and global companies seeking stable markets with clear regulations. Economic operators have implemented 130 corrective measures in response to the association's observations, and the association has also organized five workshops to support businesses in their compliance journey.
