Got scammed by a dealership? Don’t worry, as long as you are in the UAE. The UAE government has imposed an AED 100,000 fine for selling faulty cars in the UAE. Citizens can now report such crimes to the UAE Ministry of Economy or a competent authority in each emirate.
If you want to sell your car, make sure you provide the correct information about the car’s condition, ownership, and mileage. Otherwise, you can get into trouble under Article 17 of the Federal Law No. 15 of 2020 on Consumer Protection revised by Federal Decree-Law No. 5 of 2023 and Article 8 of the Cabinet Decision No. 66 of 2023 Concerning the Executive Regulation of the Federal Law No. 15 of 2020 Concerning Consumer Protection.
UAE Consumer Law
Article 17 of the UAE consumer law states that “The Advertiser, the Supplier, and the commercial agent are prohibited from describing the good or service in a manner that contains incorrect data and from making any misleading advertisement in connection therewith.”
Meanwhile, Article 8 of the Cabinet Decision No. 66 of 2023 states, “A description, advertisement or offering of a commodity or a service shall be deemed deceptive, if the same contains a misleading claim whenever it may directly or indirectly create a false or misleading impression to the consumer, in particular, if the claim includes one or more of the following elements:
- Nature, composition, substantial description, constituent elements, quantity, shape, or appearance of a commodity.
- Source, individuality, authenticity, way of manufacture, production date, expiry date, terms of use, warnings of use, weight, size, number, quantity, measurement, calibration, capacity, benchmark, or any other standards.
- Country of origin, country of export, or the commodity producer.
- The terms and procedures of contracting include after-sale service, warranty, price, and payment method.
- Awards, certification, or quality marks.
- Trademarks, statements, or logos.
- Characters of commodity or service and the expected results of their use.”
Selling Defective Commodities
If you want to avoid such trouble, consider mentioning the correct description of your product.
Article 7 of Cabinet Decision No. 66 of 2023 requires the supplier to clearly advertise the condition of used, renovated, or defective commodities on the product and at their place of business. The supplier must also clearly advertise the condition of the commodity to avoid creating false or misleading impressions for the consumer and describe the condition in the contract or invoice issued.
Appropriate Compensation
If a seller scams you, they must provide you with appropriate compensation. Under Article 24 (1) of the UAE Consumer Law, which states: “The Consumer shall have the right to claim compensation for personal or material damages sustained by him as a result of using the Good or Service, by the legislation in force in the State, and any agreement to the contrary shall be null and void.”
AED 100,000 Fine for Selling Faulty Cars
Addendum 2 of Cabinet Decision No. 66 of 2023 states that authorities may fine a seller 100,000 for providing faulty used or refurbished products.
In accordance with the legal provision mentioned above, you have the option to submit a complaint to the appropriate authority in the emirate that has jurisdiction over the case regarding the individual who sold you his faulty cars, as he deceived you by failing to disclose the vehicle’s condition.
However, suppose you possess a warranty for the car provided by the seller. In that case, you can pursue a warranty claim with the seller only if the vehicle encounters a defect or breakdown within the warranty period.
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