Question: I suspect a used-car agency knowingly sold me a faulty vehicle. Are second-hand car sales covered under the consumer protection law? How does it work?
Answer: Based on your queries, it is assumed you signed a sale-purchase agreement with the seller when buying the secondhand vehicle, and the seller provided a warranty from the purchase date. Therefore, the provisions of the UAE consumer law and its executive regulation apply.
In the UAE, Article 3 of Law No. 15 of 2020 on Consumer Protection, amended by Virtue of Federal Decree Law No. 5 of 2023 (the ‘UAE Consumer Law’), provides that the provisions of the law apply to all goods and services supplied within the UAE, including transactions carried out by suppliers and commercial agents. The law does not expressly exclude second-hand goods from its scope. Accordingly, a sale of a used vehicle by a licensed used-car dealer to a consumer may fall within the ambit of the UAE Consumer Law, particularly where the supplier has concealed material defects, provided misleading information regarding the vehicle’s condition, or otherwise engaged in unfair commercial practices.
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A seller is required to provide an accurate description of a product to a consumer and should not mislead the consumer when selling it. This is in accordance with Article 17 of the UAE Consumer Law and Article 8 of the Cabinet Decision No. 66 of 2023 Concerning the Executive Regulation of the Federal Law No. 15 of 2020 Concerning the Consumer Protection (the ‘Cabinet Decision No. 66 of 2023’). The provisions of the aforementioned law are as below:
Article 17 of the UAE Consumer Law
“The Advertiser, the Supplier and the commercial agent are prohibited from describing the Good or Service in a manner that contains incorrect data and from making any misleading advertisement in connection therewith.”
Article 8 of the Cabinet Decision No. 66 of 2023:
“A description, advertisement or offering of a commodity or a service shall be deemed deceptive if the same contains a misleading claim whenever it may directly or indirectly create a false or misleading impression to the consumer, in particular if the claim includes one or more of the following elements:
1. Nature, composition, substantial description, constituent elements, quantity, shape or appearance of the commodity.
2. Source, individuality, authenticity, way of manufacture, production date, expiry date, terms of use, warnings of use, weight, size, number, quantity, measurement, calibration, capacity, benchmark or any other standards.
3. Country of origin, country of export or the commodity producer.
4. Terms and procedures of contracting, including after-sales service, warranty, price and way of payment.
5. Awards, certification or quality marks.
6. Trademarks, statements or logos.
7. Characters of commodity or service and the expected results of their use.”
Further, when selling a secondhand product, the seller must state its condition and ensure the advertisement is not misleading. This aligns with Article 7 of Cabinet Decision No. 66 of 2023, which states, “The supplier offering used, renovated or defective commodities that do not result in any harm to health or safety of the consumer, shall apparently and clearly advertise the condition of the commodity on the commodity, as well as at the place where the supplier’s activity is practiced, in a way that shall not create false or misleading impression to the consumer. The condition of commodity shall be described in the concluded contract or the issued invoice.”
Moreover, if a seller offers a product with a warranty for a specific period, the warranty should include particulars mentioned in Article 12 of Cabinet Decision No. 66 of 2023. Article 13 also outlines the supplier’s obligations regarding warranty implementation.
Additionally, a consumer may claim compensation from a seller if the product sold is defective. Article 24(1) of the UAE Consumer Law states, “The Consumer shall have the right to claim compensation for personal or material damages sustained by him as a result of using the Good or Service, in accordance with the legislation in force in the State, and any agreement to the contrary shall be null and void.” The UAE Ministry of Economy, or a competent authority in each emirate, is authorised to receive consumer complaints under Article 35 of Cabinet Decision No. 66 of 2023.
Further, Addendum No. 2 to Cabinet Decision No. 66 of 2023, related to the Table of Financial Penalties imposed on a seller, states that a seller may be subject to a penalty of Dh100,000/- for offering defective used or renovated products.
Based on the above law, you may file a complaint with the competent authority in the emirate with jurisdiction against the individual who sold you the secondhand car for misleading you by not disclosing its condition. You must satisfy the authority that the seller misled you.
Applicable Law:
Federal Law No. 15 of 2020 on Consumer Protection, amended by Virtue of Federal Decree Law No. 5 of 2023
Cabinet Decision No. 66 of 2023 Concerning the Executive Regulation of the Federal Law No. 15 of 2020 Concerning the Consumer Protection
Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.
Disclaimer: The information provided above is intended for general guidance and does not constitute legal advice. It is recommended to seek formal legal counsel.
Source: Khaleej Times