As part of its ongoing efforts to regulate digital markets and protect shoppers' rights, the Ministry of Commerce the closure of two online stores for violating e-commerce regulations in the Kingdom of Saudi Arabia. The Ministry issued strict penalties, including fines totaling 46,000 riyals , in addition to issuing official warnings to the stores for failing to meet delivery deadlines for products to consumers.
The incident stems from the Ministry's handling of several reports and complaints from consumers affected by the dealings of two stores specializing in the sale of electrical and electronic appliances . After investigating the complaints through the Committee for Reviewing Violations of the E-Commerce Law, it was established that the two stores failed to deliver the sold goods within the agreed-upon timeframe. The violations were not limited to delays; the stores also unilaterally canceled purchase orders without refunding the payments made to consumers' accounts, a clear violation of consumers' financial and legal rights.
Regulatory rights in e-commerce
This measure reinforces the provisions of the e-commerce law and its implementing regulations, which aim to enhance trust in online commercial transactions. The law clearly stipulates that if a service provider (store) delays delivering a product for more than 15 days from the contract date—or the agreed-upon date—the consumer has the right to cancel the order and receive a full refund without any additional costs. The merchant is obligated to refund the amount immediately without delay.
The importance of oversight in promoting the digital economy
These regulatory measures are of paramount importance given the rapid growth of the e-commerce sector in the Kingdom, which is a cornerstone of the digital transformation outlined in Vision 2030. Through these penalties, the Ministry of Commerce aims to create a fair and reliable business environment that guarantees the rights of all parties and curbs unfair business practices that could negatively impact the reputation of the Saudi market. The Ministry emphasizes that any negligence in refunds or delivery delays will be dealt with firmly to ensure the continued growth of this vital sector.
In closing, the Ministry mandated that the violating stores contact the relevant authorities and address all outstanding complaints immediately, emphasizing the necessity of refunding the funds to their owners. The Ministry also urged all consumers to report any online store violating regulations through the "Commercial Report" application or the official website, to ensure a safe shopping environment for everyone.
