Legislation Details
- Full Title: Federal Decree by Law Concerning the Modern Technology-Based Trade
- Law Type: Federal Decree-Law
- Law Number: [14] of 2023
- Issued Date: 04 Sep 2023
- Effective Date: 16 Sep 2023
- Official Gazette: No. 759
- Sector: Economy and Business
- Status: Active
- Number of Articles: 42
- Chapters/Parts: 0
- Amendments: 0
Summary
This Federal Decree-Law regulates modern technology-based trade in the United Arab Emirates. Its purpose is to develop the legislative and regulatory environment for digital commerce, stimulate technology-based trade, and protect consumer rights in these transactions. The law applies to the sale and purchase of goods and services through technological platforms, websites, and mobile applications, including both digital and physical products obtained through digital means. It sets standards for digital traders, mandates consumer protections, and establishes dispute resolution mechanisms. This law is significant for businesses and consumers engaged in e-commerce and digital trade in the UAE. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 1-3)
What is the scope and purpose of this law?
The Federal Decree-Law applies to modern technology-based trade activities and the use of modern technology within the UAE, including goods and services received from outside the country. It covers both physical and virtual stores, as well as digital payment gateways related to modern technology-based trade. The law does not apply to government procurement, data and platforms used for non-trade purposes, digital currencies supervised by the Central Bank of the UAE, or transactions by licensed financial institutions and insurance companies. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 2) The key objectives of this law are to: 1. Achieve the UAE's strategic goals for digital transformation and attract investment in modern technology-based trade. 2. Develop the legislative and regulatory environment for modern technology-based trade. 3. Stimulate modern technology-based trade without differentiating between digital and physical goods/services. 4. Organize the relationship between digital traders and consumers to protect consumer interests, data, intellectual property, and enable secure digital payments. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 3)
What are the key definitions under this law?
The law provides the following key definitions:
- Modern Technology-Based Trade: The sale and purchase of goods, services, and data through technological platforms, websites, e-commerce, and social media. This includes both digital and physical products obtained through digital means. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 1)
- Modern Technology: Any technological platforms used for modern technology-based trade, including electronic, digital, biometric, artificial intelligence, blockchain, and other technologies. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 1)
- Data: Any data or information related to products, services, parties, payments, or other matters that can be stored, processed, created, and transmitted through modern technology. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 1)
- Digital Trader: A natural or legal person who sells goods or services through modern technology. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 1)
- Consumer: Any natural or legal person who acquires goods or services from a digital trader through modern technology, with or without compensation. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 1)
- Digital Contract: An agreement between the digital trader and the consumer that documents the proposal, acceptance, location, details, and terms of the transaction through modern technology. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 1)
What are the main obligations and requirements?
The law imposes the following key obligations on those engaged in modern technology-based trade: 1. Fulfilling legal, regulatory, professional, and technical requirements, and obtaining necessary approvals and licenses from the competent authority. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 5) 2. Providing a technically safe environment for trade services and meeting cybersecurity and anti-hacking standards. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 5) 3. Selling only legally permitted goods and services, and obtaining required approvals before selling restricted items. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 5) 4. Clearly disclosing the terms, conditions, prices, fees, and logistics details for goods and services. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 5) 5. Refraining from misleading or providing incorrect information about goods and services. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 5) 6. Providing detailed electronic invoices for purchases. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 5) 7. Developing a business continuity plan to ensure uninterrupted operations. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 5) 8. Providing information and data requested by the Ministry or competent authorities. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 5)
What rights and protections does this law provide?
The law grants the following key rights and protections to consumers in modern technology-based trade: 1. Receiving goods and services as per the announced specifications, time, value, and logistics costs. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 6) 2. Accessing clear information about the condition of goods and services. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 6) 3. Accessing safe payment methods and channels. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 6) 4. Opting out of promotional or marketing campaigns. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 6) 5. Providing feedback and evaluating the digital trader's performance. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 6) 6. Submitting complaints and accessing dedicated communication channels. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 6) 7. Accessing the digital trader's license, contact, and address details. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 6) 8. Returning or replacing goods and services in certain cases, such as defects, delays, or non-compliance with the contract. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 7)
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for enforcement and governance under this law are: 1. The Ministry of Economy: Proposes and sets the general policy for modern technology-based trade, issues consumer protection terms and conditions, coordinates with competent authorities on enforcement, and may delegate powers to other authorities. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 4) 2. The Competent Authority: Federal or local authorities responsible for issuing approvals, licenses, and permits related to modern technology-based trade activities. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 1) 3. The Central Bank of the UAE (CBUAE): Responsible for supervising and licensing digital currencies designated for payment and trading purposes. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 2) 4. The Dispute Settlement Committee: A committee formed under the law to resolve disputes between consumers and digital traders. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 1, 9)
What are the penalties for non-compliance?
The legislation does not specify any penalties for non-compliance with the provisions of this Federal Decree-Law. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023)
What fees, charges, or financial provisions are specified?
The legislation does not specify any fees, charges, or financial provisions related to modern technology-based trade activities. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023)
What exemptions or exceptions apply?
The law provides the following exemptions from its scope: 1. Government procurement. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 2) 2. Data, platforms, and smart applications used for non-trade purposes. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 2) 3. Digital currencies designated for payment and trading purposes supervised by the CBUAE. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 2) 4. Transactions conducted by licensed financial institutions and insurance companies, which are subject to CBUAE's supervision. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 2)
How are disputes resolved under this law?
The law establishes a Dispute Settlement Committee to resolve disputes between consumers and digital traders. The legislation does not provide further details on the composition, procedures, or powers of this committee. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Art. 1, 9)
What are the key deadlines and time limits?
The legislation does not specify any deadlines or time limits related to modern technology-based trade activities. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023)
How does this law interact with other UAE legislation?
This Federal Decree-Law is related to the following UAE legislation: 1. Federal Law No. 1 of 1972 on Competencies of Ministries and Powers of the Ministers, as amended. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Preamble) 2. Federal Decree-Law No. 50 of 2022 Promulgating the Commercial Transactions Law. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023, Preamble) The law does not mention any provisions that it repeals or amends. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023)
When did this law come into effect?
This Federal Decree-Law came into effect on 16 September 2023, as per the Effective Date stated in the legislation. (Federal Decree by Law Concerning the Modern Technology-Based Trade, 2023)
Source Documents
This article analyses Federal Decree by Law Concerning the Modern Technology-Based Trade 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.