Legislation Details
- Full Title: Cabinet Resolution on the Rules and Controls for Pricing Consumer Goods in the State
- Law Type: Cabinet Resolution
- Law Number: No. (120) of 2022
- Issued Date: 30 Dec 2022
- Effective Date: 17 Mar 2023
- Official Gazette: No. 743
- Sector: Economy and Business
- Status: Active
- Number of Articles: 19
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution aims to liberalize the pricing of consumer goods in the UAE, while also establishing a system to monitor the prices of basic consumer goods. The purpose is to promote competition in the consumer goods trade between retailers and suppliers, while ensuring consumer protection and affordable access to essential products. The Resolution grants the Ministry of Economy and local authorities the power to monitor and regulate the pricing of a defined list of basic consumer goods. (Cabinet Resolution on the Rules and Controls for Pricing Consumer Goods in the State, 2022, Art. 2, 5)
What is the scope and purpose of this law?
The scope of this Cabinet Resolution is to regulate the pricing of all consumer goods sold by suppliers and retailers in the UAE. The key objectives are: (1) to liberalize the pricing of consumer goods to promote competition between retailers and suppliers; and (2) to monitor the prices of basic consumer goods to ensure consumer protection and affordable access to essential products. (Cabinet Resolution on the Rules and Controls for Pricing Consumer Goods in the State, 2022, Art. 2, 3)
What are the key definitions under this law?
The Resolution provides the following key definitions:
- The State (UAE): The United Arab Emirates
- The Minister: The Minister of Economy
- The Ministry: The Ministry of Economy
- Competent Department: The department in charge of consumer and competition protection at the Ministry
- Competent Authority: The local authority in the Emirate responsible for supervising and controlling retailers and suppliers
- Consumer: Any natural or legal person that acquires a commodity or service for their own or a third party's needs
- Retailer: Shops or stores that offer products for sale to end consumers
- Supplier: Any legal person involved in the production, trade or storage of consumer goods
- Commodity: Any natural, industrial, agricultural, animal, manufactured, intellectual or technical product
- Consumer Goods: Agricultural, animal and food products and other products that a consumer needs to satisfy their basic needs
- Basic Consumer Goods: Consumer goods associated with the consumer's vital requirements and having the most powerful effect on the consumer
(Cabinet Resolution on the Rules and Controls for Pricing Consumer Goods in the State, 2022, Art. 1)
What are the main obligations and requirements?
The key obligations and requirements under this Resolution are: 1. Consumer goods prices must be set according to market rules, principles of free competition, and supply and demand factors, without prejudice to consumer and competition protection laws. (Cabinet Resolution on the Rules and Controls for Pricing Consumer Goods in the State, 2022, Art. 4) 2. The Ministry and Competent Authorities must monitor the prices of a defined list of basic consumer goods, including cooking oil, eggs, dairy, rice, sugar, poultry, legumes, bread, and wheat. (Cabinet Resolution on the Rules and Controls for Pricing Consumer Goods in the State, 2022, Art. 5) 3. Any increase in the price of basic consumer goods requires prior approval from the Ministry. (Cabinet Resolution on the Rules and Controls for Pricing Consumer Goods in the State, 2022, Art. 5) 4. The Ministry and Competent Authorities must ensure stable or lower selling prices for basic consumer goods for consumers. (Cabinet Resolution on the Rules and Controls for Pricing Consumer Goods in the State, 2022, Art. 6)
Which authorities or bodies are responsible for enforcement?
The key authorities responsible for enforcing and implementing this Resolution are: 1. The Ministry of Economy, which is responsible for monitoring the pricing of basic consumer goods, coordinating with Competent Authorities, and issuing implementing resolutions. (Cabinet Resolution on the Rules and Controls for Pricing Consumer Goods in the State, 2022, Art. 5, 6, 8) 2. The Competent Authorities, which are the local authorities in each Emirate responsible for supervising and controlling retailers and suppliers. They coordinate with the Ministry on monitoring basic consumer goods prices. (Cabinet Resolution on the Rules and Controls for Pricing Consumer Goods in the State, 2022, Art. 1, 6)
What are the penalties for non-compliance?
The legislation does not specify any penalties for non-compliance with the provisions of this Cabinet Resolution. Article 7 states that the Cabinet shall issue a separate resolution on the administrative violations and penalties to be imposed on those who violate the provisions of this Resolution or its implementing resolutions. (Cabinet Resolution on the Rules and Controls for Pricing Consumer Goods in the State, 2022, Art. 7)
How does this law interact with other UAE legislation?
This Cabinet Resolution references the following related UAE federal laws: - Federal Law No. (1) of 1972 on the Competences of Ministries and the Powers of Ministers - Federal Law No. (4) of 2012 Regulating Competition - Federal Law No. (14) of 2016 on Administrative Violations and Penalties in the Federal Government - Federal Law No. (15) of 2020 on Consumer Protection - Cabinet Resolution No. (37) of 2014 on the Executive Regulations of Federal Law No. (4) of 2012 Regulating Competition (Cabinet Resolution on the Rules and Controls for Pricing Consumer Goods in the State, 2022)
When did this law come into effect?
This Cabinet Resolution was issued on 30 December 2022 and will come into effect 60 days after its publication in the Official Gazette, which occurred on 16 January 2023. Therefore, the Resolution will be effective from 17 March 2023. (Cabinet Resolution on the Rules and Controls for Pricing Consumer Goods in the State, 2022, Art. 9)
Source Documents
This article analyses Cabinet Resolution on the Rules and Controls for Pricing Consumer Goods in the State for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.