Kuwait city: The act on regulation of the digital trade sector is compatible with Kuwait's keenness on upgrading its legislative system in a manner that keeps pace with global economic changes and boosts digital environment confidence, Minister of Commerce and Industry Khalifa Al-Ajial said on Tuesday.
According to Kuwait News Agency, Al-Ajail made the statement following the Cabinet's approval of a bill regulating action in this sector, in a prelude to refer it to His Highness the Amir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah. The bill is considered a cornerstone in developing digital economy infrastructure as it maintains a balance between protecting consumer rights and enabling merchants to conduct their activities within clear and flexible rules.
The bill creates an inclusive legal framework to regulate e-sanction, adjust advertisements and digital promotional activities, protect personal data, and boost transparency and professional compliance in the digital market. The minister highlighted that the law regulates digital advertisements and influencer activities by requiring advertisements to be linked to the merchant's data, documenting and keeping cooperation contracts for at least five years.
Additionally, it mandates that payments be made through official payment methods in accordance with Central Bank instructions, thereby promoting discipline and transparency in promotional content. Al-Ajail affirmed that the new legislation supports the state's policy toward strengthening Kuwait's position in the global digital economy, enhancing its competitiveness, and creating a more advanced and transparent digital business environment. He stressed that the ministry, in coordination with relevant authorities, will work on implementing this law and ensuring an organized transition for the digital market.