Saudi Arabia's new Consumer Protection Law 2026: what the Cabinet approved, the three laws it replaces, the warranty and withdrawal rules, penalties of up to SAR 8 million, a compliance plan for the 180-day grace period, and how Nova Legal protects your business from violations.
On Tuesday, 10 November 2026, the Council of Ministers approved the Consumer Protection Law, the Kingdom's first comprehensive and unified consumer protection legislation. The law contains 76 articles in 10 chapters, is enforced by more than 20 government entities, and governs the relationship between consumers and businesses for both products and services.
With penalties reaching two years in prison and fines of SAR 8 million, compliance is no longer a regulatory formality but a condition for staying in business. This guide explains the main features of the law as announced by the Ministry of Commerce, what changes for stores and companies, and how to use the transition period to get ready before enforcement begins.
What Is the New Consumer Protection Law and When Does It Take Effect?
The law is a single framework that brings together provisions previously spread across several laws and adds new rules on contracts, warranties, compensation, advertising and digital commerce. Key facts:
| Item | Detail |
|---|---|
| Approval date | 10 November 2026, by Cabinet decision |
| Size | 10 chapters and 76 articles |
| Effective date | 180 days after publication in the Official Gazette |
| Enforcing bodies | More than 20 government entities, each within its jurisdiction |
| Maximum penalty | Fine of up to SAR 8 million and up to two years in prison |
| Scope | Products and services, in physical and online sales |
Note: the 180 days run from publication in the Official Gazette, not from the date of Cabinet approval, and the implementation details will become clearer with the published text and its regulations. Start preparing now and review the official text as soon as it is published.
The Three Laws It Replaces
Once in force, the Consumer Protection Law replaces three existing laws:
- The Anti-Commercial Fraud Law, whose maximum fine was SAR 1 million.
- The E-Commerce Law, which governed online stores, disclosure and the right to cancel.
- The Commercial Data Law, covering product information and labelling.
In practice, store policies and contracts built on these laws need to be reviewed, because their legal basis is changing. If you run an online store, see our guide to privacy policies and terms of use for online stores.
Key Features of the Law and What They Mean for Your Business
| Rule | What the law provides | What your business must do |
|---|---|---|
| Warranty | At least two years for new products, and one year for used products and services | Update warranty documents, maintenance procedures and after-sales service |
| Right of withdrawal | Cancellation of distance or off-premises contracts within 7 days without giving a reason, subject to the conditions of the law | Amend the return and exchange policy and the refund process |
| Fake reviews | Misleading reviews, opinions and comments are prohibited | Set a review policy and tighten contracts with marketers and influencers |
| Payment surcharges | No extra fees for using a particular payment method | Review the checkout page and pricing |
| Comparative advertising | Comparative advertising between competitors is regulated | Legal review of campaigns before launch |
| Vulnerable groups | Special protection for children, the elderly and persons with disabilities | Controls on advertising and offers aimed at these groups |
| Class actions | Consumer protection associations may file class actions for compensation | An internal system to resolve complaints before they become a lawsuit |
| Prices in crises | Measures to curb unusual price increases in exceptional circumstances | Document the reasons for pricing and price changes |
A notable addition is that warranties now cover used products and services for the first time, so protection is no longer limited to new goods.
Penalties: Fines of Up to SAR 8 Million and Up to Two Years in Prison
The law is stricter than its predecessors: the maximum fine rises from SAR 1 million under the Anti-Commercial Fraud Law to SAR 8 million. The announced penalties include:
- A fine of up to SAR 8 million.
- Imprisonment for up to two years.
- Suspension of the commercial activity.
- Public naming of the violator.
- Compensation for harm caused to the consumer.
The penalty depends on the nature and seriousness of the violation, with a graduated approach that starts with a warning for some violations. The commercial impact of public naming and suspension can exceed that of the fine itself.
Which Businesses Are Most Affected?
- Online stores and marketplaces: withdrawal rights, disclosure, reviews and payment fees.
- Retailers of electronics, appliances and vehicles: warranty periods, maintenance and spare parts.
- Sellers of used goods: a warranty of at least one year.
- Service providers: service warranties, contracts and terms.
- Advertisers and marketing agencies: comparative advertising and advertising aimed at vulnerable groups.
- Suppliers and agents: allocation of warranty and compensation liability in supply contracts.
If you sell through suppliers, review how liability is allocated in your contracts. See our service for drafting supply contracts.
A Compliance Plan for the 180-Day Period
- Map every consumer touchpoint: sales, advertising, payment, delivery, warranty and complaints.
- Run a gap analysis between your current practice and the new requirements.
- Update your documents: sales contracts, terms of use, return and exchange policy, and warranty documents.
- Review your marketing: advertisements, offers, reviews and influencer agreements.
- Amend supplier contracts to cover warranty, compensation and recourse.
- Train your staff in sales, marketing and customer service.
- Set up a complaints register with a documented handling and response process.
Starting early gives you time to test the new procedures before they become mandatory.
How Does Nova Legal Protect Your Business from Violations?
Nova Legal Law Firm provides preventive and remedial legal services for companies and online stores:
- Legal audit: a full review of your sales, marketing and after-sales operations to identify and fix gaps before the deadline.
- Redrafting contracts and policies: updating sales contracts, terms of use, return and exchange policies and warranty documents in line with the 76 articles of the law.
- Advertising and promotion review: checking campaigns before launch for misleading claims and compliance with the rules on comparative advertising and vulnerable groups.
- Internal training: workshops for sales, marketing and customer service teams on legal obligations and complaint handling.
- Legal representation and dispute resolution: representing your business before the competent committees and courts in individual disputes and class actions.
- To update your store policies, request our service for privacy policies and terms of use for online stores.
- For contracts with partners abroad, see our guide to international commercial contracts.
Mistakes That Expose Your Business to Violations
- Waiting for enforcement to begin and then trying to change everything in a few weeks.
- Copying a ready-made return policy that does not match what the store actually does.
- A warranty shorter than the legal minimum, or conditions that empty it of substance.
- Paid or fabricated reviews without disclosure.
- A surcharge on a particular payment method.
- Comparative advertising without evidence supporting the comparison.
- Ignoring complaints until they pile up into reports or a class action.
Frequently Asked Questions
When does the new Consumer Protection Law take effect?
It takes effect 180 days after its publication in the Official Gazette. The Cabinet approved it on 10 November 2026, and the period runs from the publication date, not the approval date.
Which laws does the Consumer Protection Law replace?
Once in force, it replaces three laws: the Anti-Commercial Fraud Law, the E-Commerce Law and the Commercial Data Law.
How long is the warranty under the new law?
At least two years for new products and one year for used products and services, as announced by the Ministry of Commerce.
Can a consumer return a product without giving a reason?
Yes, for distance contracts and contracts concluded outside the business premises: the consumer may withdraw within 7 days without giving a reason, subject to the conditions and exceptions set by the law.
What is the penalty for violating the Consumer Protection Law?
A fine of up to SAR 8 million and imprisonment for up to two years, with possible suspension of the commercial activity and public naming of the violator, depending on the nature of the violation.
Is your business ready for the new Consumer Protection Law?
We review your contracts, store policies and advertising, identify the gaps, and prepare your business for compliance before the 180-day period ends.
info@novalegal.sa | Al Sahaba Road, Al-Ishbiliyah District, Riyadh
Conclusion: The 180-Day Period Is an Opportunity You Should Not Miss
The new Consumer Protection Law changes the rules of selling, advertising and warranties in the Saudi market and raises the cost of a violation to SAR 8 million and two years in prison. A business that puts its contracts, policies and procedures in order during the transition period will enter enforcement without surprises.
The Nova Legal team in Riyadh can help with the legal audit and with updating contracts and policies, including our service for privacy policies and terms of use for online stores. Book a legal assessment session today. Address: Al Sahaba Road, Al-Ishbiliyah District, Riyadh – Building 2/2 Al Hamra City, Second Floor, Office 202.