Arab Times, 4 December 2024: The Ministry of Commerce and Industry is set to unveil a draft Digital Commerce Law aimed at creating a robust regulatory framework for the digital commerce sector in Kuwait.

This initiative marks a pivotal move towards regulating digital commerce, striking a balance between facilitating commercial activities and safeguarding consumer rights, while nurturing the growth of the digital economy.

The proposed law seeks to enhance transparency, protect consumer rights, and regulate interactions between merchants, consumers, and government bodies.
It takes into account technological advancements and anticipates future challenges.

The draft will be presented at a press conference, after which legal experts, business owners, and company representatives will have until early January to provide feedback before it is reviewed and approved by the Council of Ministers.

Key aspects of the law include definitions of terms such as e-commerce, merchant, practitioner, consumer, and sensitive data.

It applies to all commercial activities conducted electronically or digitally for the purpose of offering products and services.

The law also outlines procedures for registering businesses in commercial and practitioners’ registers, promoting transparency.

Merchants must register their online stores in the commercial register, while a separate register will be established for practitioners not listed in the commercial register.

The Digital Commerce Law also regulates various professions and specifies approved workplaces, ensuring legal clarity and compliance.

A significant focus is on consumer rights protection, requiring service providers to disclose their identity, terms and conditions, and accurate product or service information.

Consumers will have the right to withdraw from contracts within 14 days, with exceptions for non-returnable items.

The law mandates transparent mechanisms for handling consumer complaints and ensures compensation for delayed deliveries or contract breaches.

Guidelines for electronic advertising are set to regulate promotional offers and prevent misleading advertisements or unauthorised use of logos and trademarks.

Promotional offers are allowed without prior approval if clear conditions are met, but discount campaigns will need prior approval from the Ministry to ensure consumer protection.

The law addresses digital documentation and signatures, setting standards for secure document storage and requiring service providers to obtain licences for digital signatures to ensure authenticity and prevent tampering.

It establishes clear responsibilities in cases of misuse.

Providers will be required to offer electronic payment options compatible with local banking systems, ensuring secure transactions.

The use of advanced technologies, such as distributed ledger systems and smart contracts, is permitted to enhance consumer experience, provided they are transparent and subject to oversight.

In terms of intellectual property, the law prohibits unauthorised use of protected content, holding providers accountable for violations.

Mechanisms will be established to address complaints, including fines and blocking infringing stores.

Cybersecurity provisions require service providers to implement stringent data protection measures, such as encryption and regular system updates, and to report security breaches within 72 hours.

Providers will be liable for any resulting damages.

The Ministry will oversee e-commerce activities and issue necessary regulations.

Two committees will be formed: the Violations Control Committee and the Dispute Settlement Committee, with the authority to issue warnings, impose fines, and temporarily close non-compliant stores.

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