KUWAIT CITY, Dec 4: The Ministry of Commerce and Industry is working to introduce a draft Digital Commerce Law designed to establish a comprehensive regulatory framework for the sector. This law represents a significant step in regulating digital commerce in Kuwait, balancing the need to facilitate commercial activities with the protection of consumer rights, while fostering the growth of the digital economy.

The law aims to promote transparency, safeguard consumer rights, and regulate the relationship between merchants, consumers, and relevant government agencies. It also considers technical advancements and future challenges. Minister of Commerce and Industry Khalifa Al-Ajeel is set to present the draft law at a press conference on Wednesday. Following the presentation, legal specialists, business owners, and company representatives will have until early January to submit their comments before the law is reviewed and approved by the Council of Ministers.

The law addresses key terms such as e-commerce, merchant, practitioner, consumer, and sensitive data, and specifies its application to all commercial activities conducted through electronic or digital means for the purpose of displaying or offering products and services. It also regulates the processes for registering businesses in the commercial and practitioners’ registers, ensuring greater transparency. Merchants will be required to register their online stores in the commercial register, while a separate Practitioners’ Register will be created for those not listed in the commercial register.

The Digital Commerce Law also outlines the regulation of various professions and specifies approved workplaces, ensuring legal clarity and compliance. A major focus of the law is the protection of consumer rights. Service providers will be required to disclose their identity, terms and conditions, and accurate information about products or services. Consumers will have the right to withdraw from contracts within 14 days, with certain exceptions for non-returnable products or services. Additionally, the law mandates transparent mechanisms for handling consumer complaints and ensures compensation in cases of delayed delivery or contract breaches.

The law sets guidelines for electronic advertising, aiming to regulate promotional offers and prevent misleading advertisements or the unauthorized use of logos and trademarks. It permits promotional offers without prior approval, provided that clear conditions are met. However, discount campaigns will require prior approval from the Ministry of Commerce and Industry to ensure consumer protection.

Digital documentation and signatures are also addressed by the law, which sets standards for secure document storage and mandates that service providers obtain a license to use digital signatures, ensuring their authenticity and protection against tampering. The law establishes clear responsibilities in cases of misuse.

Additionally, the law will require providers to offer electronic payment options that are compatible with local banking systems and guarantee secure transactions. It allows the use of advanced technologies, such as distributed ledger systems and smart contracts, to enhance the consumer experience, provided these technologies are transparent and subject to oversight.

In terms of intellectual property, the law prohibits the unauthorized use of protected content. Providers will be held responsible for any violations, and mechanisms will be established to address complaints, including imposing fines and blocking infringing stores.

The law also includes provisions for cybersecurity, requiring service providers to implement stringent data protection measures, such as encryption, regular system updates, and reporting security breaches within 72 hours. Providers will be held liable for any resulting damages.

The Ministry of Commerce and Industry will be responsible for overseeing e-commerce activities and issuing necessary regulations. Two committees will be established: the Violations Control Committee and the Dispute Settlement Committee, with powers to issue warnings, impose fines, and temporarily close violating stores.