Sunday, Apr 03, 2011

Gulf News

Dubai Shopowers in Dubai could be slapped with a Dh20,000 fine if consumers are unhappy with their services, the Department of Development (DED) has said.

The Consumer Protection Section of DED is preparing to launch a set of stringent regulations that will make product warranties, refund policies, customer services and consumer rights mandatory for traders and retailers.

All these will be stated in what the DED calls the Bluebook — a style guide detailing the legal citation to protect the rights of consumers and traders, the executive director of the DED’s Commercial Compliance and Consumer Protection Section, Omar Bu Shehab, told Gulf News.

“We have finalised a draft about the legal framework of four commercial policies to be cited in the Bluebook which include guarantee, refund, exchange and the bill,” he said.

The Bluebook legally defines the relation between consumers and traders, their rights and responsibilities, he added.

“The policies will describe in detail how the consumer can seek warranties on the products they purchase and how they can exchange or refund any item,” he said.

Bu Shehab said the purchase document or the bill will be at the core of the refund/warranty and after-sales service policies and its terms will dictate the relations.

“The bill is the most important material the consumer should keep to safeguard his rights and use it to back up any claims for a refund or warranty,” he said.

The final version of the Bluebook will be issued and implemented in June.

Bu Shehab said the policies would be vital for traders to raise business practice and customer service to the level of international markets.

“We can’t impose these policies on the traders, but the consumer complaints would be treated according to the legal citation in the Bluebook,” he said.

Penalties

In case of any violation, he said, penalties will be imposed on the trader as per the Bluebook.

The penalties will vary from a warning in the first instance to freezing the licence of the trader to a fine imposed on the retailer (Dh500 to Dh20,000) and it might end up with the closure of the business.

DED will launch an awareness campaign on the policies next month.

The campaign will target a number of retailers in shopping malls and educate them on how to strike a balance between consumer rights and the dealer’s duties.

Impact

Pointing to the effectiveness of the campaign and the fact that consumers know their rights better, Bu Shehab said the number of consumer complaints in 2010 rose to 2,900 from only 392 in 2009.

He added: “The strategic objectives of this awareness are creating a favourable business environment and supporting the development of businesses, while describing how to protect consumer rights and how to define traders’ responsibilities.’

Despite the fact that the awareness campaigns are very costly, Bu Shehab said it was worth it.

“Last year the total cost for all awareness campaigns that developed about consumer protection was Dh3 million; however the result showed how it was a good investment.”

He added; “We have 60 inspectors in the department with a cost of Dh20 million per year.

“Thus, spending on the awareness campaign is nothing compared to its returns of rationalisation of rights and responsibilities for both consumer and traders.”

We have 60 inspectors in the department with a cost of Dh20 million per year. Thus, spending on the awareness campaign is nothing compared to its returns of rationalisation of rights and responsibilities for both consumers and traders.”

By Zaher Bitar Staff Reporter

Gulf News 2011. All rights reserved.