Kuwait introduces new law

The government of Kuwait has issued a new decree-law aimed at regulating the country’s fast-growing digital commerce sector, as part of efforts to boost consumer confidence and support innovation.

The decree law No. 10/2026 establishes a legislative framework to regulate the digital commerce sector in the State of Kuwait, enhancing trust in digital transactions, creating a secure and competitive environment that fosters investment and innovation, and contributing to the goals of Kuwait’s development vision, New Kuwait 2035.

The law also takes into account laws related to electronic transactions, consumer protection, copyright and neighbouring rights, cybersecurity, and competition protection.

Under the new rules, no individual or business may operate in the digital commerce sector without registering with Kuwait’s Ministry of Commerce and Industry, which has been tasked with overseeing and enforcing the law.

Online sellers will be required to clearly disclose key information about their products or services, including pricing, specifications and contact details. Advertisements must not contain false, misleading or illegal claims.

The decree law also requires product and service providers to comply with cybersecurity standards applicable within the State of Kuwait.

The law grants consumers the right to amend or cancel contracts if an error occurs during an electronic transaction. It also introduces a 14-day withdrawal period, allowing customers to return or exchange products for a full refund using the original payment method or another agreed method, at no extra cost.

Products must be returned in the same condition as when purchased, except in specified cases.

In addition, companies must use electronic payment service providers licensed by the Central Bank of Kuwait (CBK). Businesses are prohibited from imposing additional fees for electronic payments without prior approval from the central bank.

The decree comprises 45 articles in 10 chapters, covering comprehensive provisions related to the regulatory, procedural, supervisory, and punitive aspects of the digital commerce sector.

It assigns the Ministry of Commerce and Industry the responsibility of regulating the sector and overseeing the implementation of the decree-law, including its regulations and decisions.

Two specialized committees have been established under the decree. A Violations Committee will review breaches and determine whether to refer cases, close them or approve settlements. A Dispute Resolution Committee will handle conflicts between businesses and consumers, impose financial penalties and refer criminal offences to the public prosecution where necessary.

The committee’s decisions will be final and enforceable in accordance with implementing regulations.

The decree-law also includes several penal provisions, stipulating imprisonment or fines for anyone who violates the core articles, with the possibility of doubling the penalty in cases of repeated violations.

Authorities may also confiscate tools or assets used in committing offences and order the closure of non-compliant online stores.

It allows for reconciliation in the crimes specified, under certain controls, to provide procedural flexibility and reduce the burden on the judiciary.

Certain employees of the Ministry of Commerce and Industry will be granted judicial authority to investigate violations under the law.

The legislation will come into force six months after its publication in the official gazette, allowing time for the ministry to prepare the necessary implementing regulations and procedures.