Kuwait unveils e-commerce rules to boost consumer protection, market transparency

KUWAIT: Kuwait has introduced a comprehensive regulatory framework for electronic platforms and intermediary applications offering products and delivery services, marking a major step in modernizing the country’s e-commerce sector and strengthening consumer protection. Issued under Ministerial Decision No 109 of 2026 by the Ministry of Commerce and Industry, the new regulation establishes a unified legal framework governing the relationship between digital platforms, merchants, delivery service providers and consumers. It aims to enhance transparency, improve market practices, protect consumer rights and support the continued growth of the digital economy. The regulation comes in response to the rapid expansion of e-commerce in Kuwait, where online platforms have become a key channel for marketing, selling and delivering products. The ministry said the framework addresses challenges associated with the sector’s growth while balancing consumer protection, business sustainability and investment promotion. Among its key provisions, the regulation requires platforms to clearly disclose product prices, commissions, delivery charges and any additional fees before an order is confirmed. It also obliges platforms to display merchant information, publish clear terms and conditions of use and provide accurate product descriptions, while prohibiting the imposition of undisclosed charges on consumers. The regulation introduces standardized definitions for key terms, including electronic platform, service provider, customer, delivery service provider, commission and delivery fees, ensuring consistency across the sector. Service providers must obtain the necessary licenses, comply with all applicable legislation and meet regulatory requirements issued by the Ministry of Commerce and Industry and other relevant authorities. Platforms are also required to implement measures to safeguard customer data and protect electronic systems from cyberattacks and misuse. Consumer protection forms a central part of the new framework. Platforms must establish transparent policies for exchanges, refunds and returns, provide effective complaint-handling mechanisms with specified response times and maintain records of complaints and actions taken. They are also required to protect consumers’ personal data in accordance with the law, maintain records of electronic transactions and issue electronic invoices. The regulation also sets out responsibilities for delivery service providers to ensure the safe handling and timely delivery of products, while requiring platforms to monitor delivery operations and coordinate between merchants, delivery companies and customers. In one of its most significant provisions, the regulation places limits on platform commissions and delivery charges. Platforms that provide delivery services may charge commissions of up to 17 percent, while those handling transactions where merchants manage their own deliveries are limited to a maximum commission of 10 percent. The decision also caps delivery fees charged to consumers at KD 1 per order, with no additional charges permitted that would exceed the limit. The ministry said the measures are intended to promote fair competition, prevent excessive pricing and ensure a balanced relationship between platforms and businesses. The regulation took effect on July 8 and grants the Ministry of Commerce and Industry broad inspection and enforcement powers, including the authority to request documents and data, conduct inspections and impose administrative penalties on violators. Licensed companies operating digital platforms are required to regularize their status by amending their business activity to “Managing Delivery Services through Electronic Platforms” under the approved international classification before Sept 1, 2026. The ministry has also issued an implementation guide outlining the obligations of platforms, merchants, delivery service providers and consumers to facilitate compliance and ensure consistent enforcement. According to the explanatory memorandum accompanying the decision, the regulation is designed to address longstanding market concerns, including inconsistent commission structures, varying delivery fees and insufficient transparency in commercial terms. It is expected to improve disclosure standards, strengthen confidence in digital transactions, enhance the quality of electronic services and provide a unified regulatory reference for all participants in the sector. The new framework also repeals Ministerial Decision No 10 of 2026, which previously regulated restaurant and prepared food delivery services, replacing it with broader legislation covering all intermediary electronic platforms operating in Kuwait. Officials said the regulation marks a new phase in the governance of e-commerce, establishing clear rights and obligations for all stakeholders while supporting the country’s digital transformation agenda and creating a more transparent and competitive business environment. – KUNA Reference: https://kuwaittimes.com/article/46786/kuwait/other-news/kuwait-unveils-e-commerce-rules-to-boost-consumer-protection-market-transparency/