Recently, the Ministry of Commerce and Investment of Saudi Arabia issued the Electronic Commerce Law (hereinafter referred to as the Saudi Electronic Commerce Law).
In this regard, the original Saudi e-commerce law has been translated and interpreted by Zhanhong Supply Chain. For cross-border e-commerce sellers, Saudi e-commerce law has achieved new provisions from consumer privacy, consumer voucher rights, intellectual property rights and consumer return services.
In terms of privacy, Article 5 of the Saudi e-commerce law states that e-commerce service providers shall not retain personal consumer data and their electronic means of communication unless the service providers and consumers have previously agreed on this. E-commerce service providers also need to take necessary measures to protect consumers'privacy during the retention of personal information and contact information within a reasonable period of dealing with e-commerce transactions; service providers should be responsible for protecting consumers' personal data or electronic communication methods under the control of their agents or their agents.
In addition, e-commerce service providers shall not disclose the electronic communications of individual consumers to the other party without authorization or permission, whether for fees or free of charge.
With regard to consumer certificate requirements, Article 8 of the Saudi E-commerce Act states that after signing a contract, the e-commerce service provider shall provide invoices to consumers indicating the cost and total price of purchasing various products or services. According to the regulations, this invoice must include all expenses, taxes or additional amounts (if any) related to delivery, as well as the date and place of delivery.
In addition, Article 11 of the Saudi Electronic Commerce Act also states that it is prohibited to have a trademark or forged trademark in an electronic advertisement which is not authorized to be used by an e-commerce service provider and which is expressed in terms that directly or indirectly mislead consumers.
With regard to customer returns, Article 13 of the Saudi Electronic Commerce Law also emphasizes that an electronic commerce contract should be terminated within seven days from the date of receipt of the product or on the date of the contract's service delivery, unless the parties to the contract otherwise benefit from the service if the consumer does not use the product of the service provider. It is agreed that otherwise the consumer shall bear the expenses arising from the termination of the contract.
The regulation also points out that e-commerce contracts do not comply with the seven-day termination clause mentioned above: A. If the e-commerce is a product manufactured according to consumer requirements or specific specifications, excluding defective or non-conforming products; B. If the contract contains videos, CD-ROMs or information procedures used; C. If the contract Involving newspapers, magazines, publications or books D. Products are damaged due to improper storage by consumers; E. If the contract involves providing accommodation services or handling; F. If the contract involves purchasing products through downloading software on the Internet, and excludes defective software that prevents downloading or does not meet the consensus; G. Its. His condition is determined by the regulation of product or service requirements.
Article 14 of the Saudi Electronic Commerce Law also states that if the service provider and the consumer do not agree to deliver or execute the contract at another time, and the service provider delays delivery or executes the contract for more than 15 days from the date of signing, or later than the agreed time between the two parties, the consumer has the right to cancel the contract and recover the root of the contract. Payment of deferred charges for products, services or other arrangements in accordance with the contract (unless delayed due to force majeure).
Ebong Dynamics understands that legislation on e-commerce law was initiated by the Saudi Council for Electronic Commerce. The sector is looking for ways to make Saudi Arabia profitable in the fast-growing e-commerce industry and implement 39 facilities to strengthen its e-commerce infrastructure, payment system, postal and logistics services.
In response to the adoption of the e-commerce law, Dr. Majid al-Qasabi, Minister of Commerce and Investment of Saudi Arabia, said that the e-commerce system was a new historical stage in the development of national economy, which helped to enhance the status and capacity of Saudi Arabia's economy in order to keep up with all the changes in world business and the pace of modern trade patterns.
According to the relevant data, Saudi Arabia has a population of more than 33 million, network coverage of more than 90%, and per capita GDP of $20,029. Saudi Arabia is rich in petroleum resources, and its national economic source basically depends on the petroleum industry. At the same time, Saudi Arabia is located in the tropical and subtropical desert climate and lacks natural resources, which makes products such as light industry extremely dependent on imports, and serious shortage of supply and demand promotes the development of trade.
According to a survey by relevant institutions, Saudi Arabia is one of the countries with the highest proportion of young people in the world, and up to 70% of its population is under 35 years old. This is one of the reasons why the country's online consumption activity has risen markedly, owing to a large technology-savvy consumer base.
Mobile shopping is very popular among Saudi consumers. According to relevant data, more than 70% of people will shop online through smartphones. In fact, Saudi Arabia's mobile-end purchases have reached an all-time high, with more than 50% of all purchases in all sectors of the country being made through mobile phones. According to research and Markets, Saudi B2C e-commerce sales are expected to double from 2018 to 2022.
According to a survey, 3192 new registered e-commerce enterprises were added in Saudi Arabia in 2018, an increase of 64% compared with 1940 in 2017. Since records began, the number of registered e-commerce businesses in Saudi Arabia has reached 9148.