Khaberni - The Kuwaiti newspaper "Al-Rai" reported that advertising or promoting products, goods, and services through social media platforms or via sales and purchase applications is no longer allowed without a license from the Ministry of Commerce and Industry.
The newspaper explained that "promoting products, goods, and services through social media platforms or via sales and purchase applications is no longer allowed without a license from the Ministry of Commerce and Industry, pursuant to the Emiri decree of the law regulating work in the digital commerce sector, in a step aimed at keeping up with global transformation, achieving a balance between encouraging innovation and protecting consumers, and ensuring transparency and fairness in transactions."
It added that "as soon as the decree was announced, a broad discussion opened on social media, followed by a wave of consecutive questions about who the conditions and penalties apply to, the licensing mechanism, the specifications of the advertisements in the digital commerce sector, and the prescribed fees."
It is scheduled that "the law will come into force 6 months from its publication in the Official Gazette, after which the license prescribed by the Ministry of Commerce becomes a fundamental requirement for practicing any digital business activity inside the country, whether by companies or individuals, while the decree requires including in the advertisements clear information about the product or service provider, its price, specifications, and contact details, banning any misleading or false content."
The decree also allows providers of products or services to offer logistical services including storage, shipping, transportation, and direct delivery to the consumer, whether via modern technical means or through licensed parties inside or outside the state, while preventing the imposition of any additional amounts on the consumer unless they were specifically outlined in the conditions of the electronic contract."
The newspaper confirmed that "in case influencers are used in promotional campaigns, the decree requires the product or service provider to retain all data, records, and agreements related to the influencers for no less than 5 years, and to provide them to the ministry upon request, while ensuring the payment of their dues through reliable payment methods compliant with anti-money laundering standards and instructions of the Central Bank of Kuwait, banning any promotional campaigns that involve deceit or misleading consumers."
According to the decree, "responsibility lies on the actual manager of the legal person in case of proven knowledge of the violation or benefit therefrom, with the possibility of settling in crimes stated according to specific controls, to achieve procedural flexibility and lighten the burden on the judiciary."
The newspaper noted that Article 39 stipulates punishment for violators with imprisonment for no more than one year, and a fine of no less than 1000 dinar and not exceeding 10,000, or one of these two penalties, in case of violating certain articles of the law or presenting false information or forged documents for registration in the digital commerce registry, or displaying products or services that are illegal or contrary to public order or morals or public health, or failing to execute decisions of the dispute settlement committee, with the possibility of doubling the penalty in case of recurrence, in addition to confiscating the means used in committing the violation or the funds obtained from it, and closing down the violating shop upon proven knowledge of the violation."
The decree delegates to "the Ministry of Commerce the task of regulating the digital commerce sector and supervising the enforcement of the decree's provisions and its regulations, issuing decisions regulating electronic auctions and intermediary platforms between providers of products or services and consumers, alongside preparing the financial penalties regulation."
The decree provisions confirmed "the necessity for providers of products and services to comply with the cybersecurity standards adopted in Kuwait, periodically update data protection systems, restrict dealings in electronic payments to licensed entities by the Central, and prevent the imposition of any additional fees on electronic payment methods unless prior approval from the Central is obtained."
