An emiri decree-law No. 10 for the year 2026 was issued in Kuwait concerning the regulation of work in the digital trade sector. This law aims to align with global transformations and ensure a balance between encouraging innovation and protecting consumers, as well as ensuring transparency and fairness in transactions. The decree-law establishes a legislative framework for digital trade in Kuwait, enhancing trust in digital transactions and creating a safe, competitive environment that encourages investment and innovation. It also contributes to achieving the goals of Kuwait's developmental vision 'New Kuwait 2035' regarding digital transformation and sustainable development. The decree-law takes into account related laws on electronic transactions, consumer protection, copyright, cybersecurity, and competition protection. It includes 45 articles distributed across 10 chapters, covering comprehensive regulatory, procedural, supervisory, and penal aspects related to regulating digital trade. The Kuwaiti Ministry of Commerce and Industry is tasked with regulating the sector and supervising the implementation of the decree-law and its executive regulations. The law stipulates that no one may engage in digital trade before registering in the ministry's dedicated records. The articles of the decree-law specify the information that a product or service provider must disclose in their online store. They also grant the consumer the right to withdraw from a contract within 14 days of receiving the product or to replace or return it for a full refund without additional costs, provided the product is in its original condition. The articles regulate advertising and promotion for digital trade, requiring clear information about the provider, price, specifications, and contact details, and prohibiting false or misleading data. The law obliges providers to apply Kuwait's cybersecurity standards and regularly update protection systems to counter new threats. It also prohibits imposing additional fees for using electronic payment methods without prior approval from the Central Bank of Kuwait. To ensure effective supervision and proper enforcement, two specialized committees were established: the Violations Committee and the Digital Trade Dispute Resolution Committee. The decisions of these committees are final and binding. The decree-law contains several penal provisions, including imprisonment or fines, with the possibility of doubling the penalty for recidivists. It also provides for the confiscation of means used in or proceeds from crimes and the closure of non-compliant stores. The law holds the actual director of a corporate entity liable if they were aware of or benefited from a violation. It allows for settlement in criminal cases as per specific criteria. Certain ministry employees are granted judicial authority to prosecute violations under the decree-law. The Ministry is obligated to publish executive regulations in the official gazette and on its website. The decree-law will take effect six months after its publication to allow the Ministry to prepare for its implementation.
