Kuwait - The Ministry of Commerce and Industry is studying a proposal to amend the car rental document to regulate the vehicle market -- an unprecedented move aimed to unify practices and regulate the contractual relationship between rental offices and customers.

This is part of a government initiative to modernize the regulatory frameworks for the car rental market and ensure a balance between consumer rights and the interests of rental companies in order to reduce legal disputes and boost confidence in this vital service sector.

Reliable sources informed the newspaper that a tripartite meeting will be held Monday, with representatives from the Ministry of Commerce and Industry, Experts Department at the Ministry of Justice, and Insurance Unit in attendance.

They will discuss amending the car rental document and review a set of regulatory proposals aimed at controlling the vehicle rental market and strengthening consumer protection.

Sources said the meeting is part of a comprehensive review of current rental documents and contracts, in light of frequent consumer complaints. Sources revealed the proposals on the meeting agenda include regulating the operations of car rental offices according to seven main axes as follows:

  • Define car categories and rental prices through clear and approved classifications (Economy, Mid-range and Luxury), thus, ensuring clarity of category and rental price for the consumer and limiting manipulation or misrepresentation in vehicle classifications.
  • Standardize the terms of rental contracts in all rental offices and companies, ensuring clear, specific, and binding wording for both parties, to be officially approved by the Ministry of Commerce and Industry to guarantee fairness and transparency in contracts.
  • Abolish the sta
  • Standardized value for additional kilometers in rental contracts and replace it with a calculation that corresponds to the car’s value, category and prevailing market price, with exceptions for special vehicle categories – if any – whose nature of use requires different arrangements.
  • Obligate rental offices and companies to
  • notify the renter within a fixed period before the lease expires, either by telephone or text message, to alert them on the approaching lease end date. In the event of the renter’s late payment, failure to return the vehicle or loss of communication, legal action will be taken immediately, preventing the accumulation of unpaid rent without the consumer’s knowledge.
  • Prevent consumers from being obligated to pay unjustified fees, such as file opening fees, accident charges, depreciation percentages in case of total loss, or being required to have the vehicle repaired at the dealership, unless these clauses are clearly stipulated in the contract and approved by the Ministry of Commerce and Industry.
  • Require rental offices to maintain a comprehensive record containing the accident history of rental vehicles, repair invoices, and copies of lease agreements. This will enhance transparency and guarantee consumer rights during contracting or dispute resolution.
  • Provide a replacement vehicle for the consumer in case the rented car breaks down due to a technical malfunction during the rental period, at no additional cost. The consumer will not be charged for towing fees in such cases.

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