Introduction: E-Commerce as a Driver of the Modern Economy

E-commerce has become an essential part of economic and social life in the Kingdom of Saudi Arabia, driven by rapid digital transformation, high internet penetration, widespread smartphone usage, and changing consumer behavior. Online shopping is no longer a secondary option; it has evolved into a core economic activity involving both individuals and businesses.

In response to this reality, the Kingdom issued the E-Commerce Law to establish a legal framework regulating the relationship between online stores and consumers. The law strikes a careful balance between encouraging digital innovation on one hand and protecting consumer rights and enhancing trust in digital transactions on the other, in line with the objectives of Saudi Vision 2030 to diversify the economy and strengthen the digital economy.

First: Scope of Application of the E-Commerce Law

The Saudi E-Commerce Law applies to:

  • Any natural or legal person practicing e-commerce activities within the Kingdom.

  • Local online stores.

  • Foreign online stores targeting consumers inside the Kingdom by offering products or services to them.

This includes the sale of goods, provision of services, digital subscriptions, and intermediary platforms that connect sellers and buyers.

Second: Obligations of the Online Store Under the Law

The law places strong emphasis on transparency and disclosure as the foundation of consumer protection, imposing precise obligations on service providers before completing any purchase.

1. Disclosure of the Store’s Identity

The online store must clearly enable the consumer to know who they are dealing with by disclosing:

  • The commercial name.

  • Address and contact details.

  • Commercial registration number or license (if applicable).

  • Any other information that allows the consumer to communicate or submit a complaint.

This disclosure helps prevent fake stores and reduces electronic fraud.

2. Full Disclosure of the Product or Service

The store is required to provide a clear and accurate description of the product or service, including:

  • Essential specifications.

  • Total price, inclusive of taxes and fees.

  • Shipping and delivery costs.

  • Execution or delivery timeframe.

Any omission or misleading information constitutes a direct violation of the law.

3. Clarification of Contractual Terms

The law emphasizes the importance of clearly stating:

  • Payment terms.

  • Warranty policies.

  • Exchange and return procedures.

  • Mechanisms for contract or subscription termination.

These terms must be written in clear and simple language before completing the purchase.

Third: The Consumer’s Right of Withdrawal

The right of withdrawal is one of the most important consumer protection mechanisms under the Saudi E-Commerce Law.

1. Withdrawal Period

The consumer has the right to withdraw from the contract within:

  • Seven days from the date of receiving the product,

  • Without providing any reason,

  • And without bearing any cost, except for return shipping fees.

2. Effects of Withdrawal

When the right of withdrawal is exercised:

  • The store must refund the paid amount.

  • The refund must be made within a specified period and, where possible, using the same payment method.

3. Legal Exceptions

The law excludes certain cases from the right of withdrawal, including:

  • Goods manufactured according to the consumer’s specifications.

  • Perishable goods.

  • Software and digital content that has been used or opened.

  • Health or personal products that cannot be returned for safety reasons.

Fourth: Regulation of Advertising and Electronic Marketing

The law sets strict rules for digital advertising to protect consumers from misleading practices.

1. Credibility and Clarity

  • Advertisements must be truthful and not misleading.

  • Exaggeration or concealment of essential information affecting purchasing decisions is prohibited.

2. Identification of Advertisements

  • Advertisements must be clearly identified as promotional content.

  • Mixing advertising content with informational content is not allowed.

3. Disclosure of the Advertiser’s Identity

Advertisements must include the store’s or advertiser’s details, enabling consumers to verify and communicate with them.

Fifth: Protection of Consumer Data in E-Commerce

The law gives special attention to consumer data due to its sensitivity in the digital environment.

1. Data Confidentiality Obligations

The store must:

  • Not disclose consumer data.

  • Not use data for unauthorized purposes.

  • Not share data with third parties without consent.

2. Technical and Security Measures

  • Securing the platform against hacking.

  • Protecting payment data and personal information.

  • Ensuring the safety of electronic transactions.

Any breach of these obligations is considered a serious violation.

Sixth: Oversight and Legal Penalties

The Ministry of Commerce is responsible for supervising and enforcing the E-Commerce Law, with authority to:

  • Receive consumer complaints.

  • Investigate violations.

  • Impose legal penalties.

Penalties include:

  • Financial fines.

  • Suspension or blocking of the online store.

  • Public disclosure (naming and shaming) in cases of serious or repeated violations.

Conclusion: A Safer and More Sustainable Digital Environment

The Saudi E-Commerce Law represents an advanced legislative step toward regulating the digital market and protecting its participants. It has contributed to:

  • Enhancing trust between consumers and online stores.

  • Reducing fraud and unlawful practices.

  • Promoting professionalism and transparency in digital transactions.

With the continuous growth of e-commerce, compliance with the law and awareness of rights and obligations remain essential for the sustainability of this vital sector. The role of legal advisors is also crucial in helping online stores achieve regulatory compliance and enabling consumers to safeguard their rights in the digital space.