Kuwait city: Decree-Law No. (10) of 2026 concerning the regulation of the digital commerce sector was officially issued, aligning with global transformation trends and aiming to balance innovation encouragement with consumer protection, transparency, and fairness in transactions. The decree-law introduces a comprehensive legislative framework governing digital commerce activities in Kuwait, aiming to enhance confidence in digital transactions and foster a secure and competitive environment.
According to Kuwait News Agency, the legislation considers related laws on online transactions, consumer protection, copyright and related rights, cybersecurity, and competition protection. The decree-law consists of 45 articles spread across 10 chapters that address integrated regulatory, procedural, supervisory, and penal provisions linked to the organization of the digital commerce sector.
The Ministry of Commerce and Industry has been tasked with regulating the sector and overseeing the implementation of the decree-law. The legislation outlines mandatory disclosures that product or service providers must make on their online platforms. It grants consumers the right to cancel or amend contract portions affected by errors during electronic contracting if the system lacks a mechanism to correct such errors, under specified controls.
Consumers are also given the right to withdraw from a contract within 14 days of receiving a product, or to exchange or return it and recover its value through the same payment method or another agreed method without extra cost, provided the product remains in its original condition at purchase, except in specified cases.
The law regulates digital commerce advertising and promotion due to their direct impact on trust in digital transactions. Advertisements must include clear information on the product or service provider, pricing, specifications, and contact details, along with other data specified by executive regulations. Misleading, false, or unlawful advertisements are prohibited.
Providers are required to comply with cybersecurity standards in force in Kuwait and to update data protection systems periodically to address emerging cyber threats. They must deal exclusively with electronic payment service providers licensed by the Central Bank of Kuwait and are prohibited from imposing additional fees for electronic payment methods without prior Central Bank approval.
To ensure effective oversight and proper enforcement, the decree-law establishes two specialized committees: the Violations Committee, tasked with reviewing violations and settlements, and the Digital Commerce Dispute Settlement Committee, responsible for resolving disputes between providers and consumers, imposing financial penalties, or referring criminal violations to the Public Prosecution. Decisions of both committees are final and enforceable per the executive regulations.
The decree-law includes penal provisions, stipulating imprisonment or fines for key article violations, with the possibility of doubling penalties for repeat offenses. It allows for the confiscation of tools used in crimes or proceeds derived therefrom and the closure of violating online stores if violation knowledge is established.
It establishes the liability of the actual manager of a legal entity if proven to know of or benefit from the violation and allows reconciliation in specified crimes under certain controls to ensure procedural flexibility and reduce the judiciary's burden.
Certain Ministry employees are granted judicial authority to detect and document crimes and violations under the decree-law. The Ministry of Commerce and Industry is required to publish executive regulations and decisions in the Official Gazette and on its website. The decree-law will come into force six months after its publication in the Official Gazette, allowing the Ministry time to prepare for its implementation.