Buyers Can Sue Sellers for Defective Cars in UAE – Fines Up to Dh100,000

Sellers listen up! Buyers must receive a description by sellers within the UAE through accurate product and service information, hence transparency in transactions is ensured. This is within the boundaries of the Consumer Protection Law of the UAE under Federal Law No. 15 of 2020, as modified by Federal Decree-Law No. 5 of 2023 as well as further detailed in the Cabinet Decision No. 66 of 2023. The law has included provisions against false or misleading advertisements of defective cars in UAE as well as proper descriptions to be given to consumers, especially regarding their secondhand or used products.

Article 17 of the UAE Consumer Law highlights that sellers, suppliers, and commercial agents must not provide false information regarding the goods sold. This includes making misleading statements regarding the nature, composition, origin, or quality of goods. In addition, Article 8 of Cabinet Decision No. 66 of 2023 underlines that any description or advertisement would be considered misleading if it creates a misleading impression concerning any particularly important aspects such as the condition and origin, warranty, and price of the product.

With secondhand or used cars, the sellers have to inform the buyer of the exact condition of the vehicle. It has to be very clearly indicated in any advertisement that the condition of any secondhand or renovated product is reflected in the sales contract or invoice, as mandated by Article 7 of the Cabinet Decision. This to prevent consumers from being misled by wrongful claims regarding the condition of the car.

A buyer who buys a defective car may have the right to claim compensation. Article 24 (1) of the UAE Consumer Law states that consumers are entitled, besides other rights, to compensation for any material or personal damage caused by the use of defective consumer goods. If the car is sold along with a warranty, the seller then has to adhere to some obligations under Article 12 and Article 13, which govern warranty terms and conditions in the Cabinet Decision.

The penalties for transgressing these laws are monumental. Sellers offering defective or otherwise slyly advertised secondhand cars may be leveled with up to Dh100,000 in fines, according to Addendum No. 2 of Cabinet Decision No. 66 of 2023. Such deterrence is before one even thinks of getting involved in deceptive dealings.

Consumers might file their complaints with the UAE Ministry of Economy or with the authority relevant to their emirate if they feel shortchanged. Such authorities are empowered to investigate the allegations and take the necessary action against the sellers who do not comply with the legal specifications of product description and disclosure.

In a nutshell, consumer law enforcement in the UAE is very stiff, and buyers have the right to sue if they buy defective or misrepresented products, which include second-hand cars. Therefore, sellers must put an accurate description on any of their products, or else they will be liable for heavy fines and legal action.