• Home
• Retail
• News Article

Consumer rights on DED radar ‘Blue Book’ coming soon

Wednesday, Jun 15, 2011

Gulf News

Dubai: The biggest dispute retailers have with consumers involves product refund and exchange policies, according to a Department of Economic Development (DED) survey.

“A big percentage of businesses in Dubai are franchises and they have imported their policies from the chains in their countries. They bring them here and force them on consumers. This has caused most of the disagreements,” said Mohammad Lootah, Deputy CEO of the DED’s Commercial Compliance and Consumer Protection Division.

After recent discussions with the division on UAE consumer laws, most retailers are “convinced that they should go in line” with local laws, he added.

The DED organised a consumer rights campaign to educate retailers on Consumer Law No 24 of 2006 that regulates refunds, exchanges, warranties, bills and other aspects of retail in April. Officials said yesterday that 89 per cent of retailers who participated said they understood their duties and rights.

The law, for instance, states that if a product has a defect or it’s not repairable, it is the responsibility of the retailer to exchange it for another, explained Lootah. If no stock is available, retailers must refund the amount paid.

“Consumers think they can change their mind and return the product, but according to the law they can only return it if there’s a defect. Especially with jewellery or clothes, some people just use them for an occasion and try to return them the next day,” said Adel Al Helou, Head of Consumer Protection.

Retailers who violate the consumer law can face over Dh10,000 in fines, depending on the complaint and sector, he told Gulf News. Nearly 1,700 retailers in key businesses and trading groups such as gold and jewellery, electronics, auto and textiles participated in the sessions held in nine malls in Dubai.

Price controls

Commenting on the price controls during Ramadan, when food prices tend to increase every year, Lootah said the division will try its best to regulate prices. The prices of specific food items will be fixed until the end of the year in major retail outlets.

Addressing the recent directive from the Ministry of Economy asking retailers to stop charging consumers for credit card fees, Lootah said he does not expect retailers to raise product prices as a result.

“They should incorporate costs in different ways rather than charge consumers. They are not forced to increase prices but there will be increased competition,” he said.

Dubai The number of consumer complaints is expected to drop once the “Blue Book” “on consumer rights is issued before the end of the year, DED officials said.

“Will it reduce the number of complaints? Naturally, because consumers will know their rights,” Adel Al Helou, Head of Consumer Protection, told Gulf News, but did not elaborate on how effective complaint resolutions will be.

The first edition of the Blue Book, to be issued by the Commercial Compliance and Consumer Protection Division of the DED, will be used as a reference for consumers and will regulate the relationship between consumers and retailers, said Mohammad Lootah, Deputy CEO of the division.

It will be available for download on the DED website www.consumerrights.ae, said Al Helou.

By Deena Kamel Yousef, Staff Reporter

© Gulf News 2011. All rights reserved.