Kuwait’s Ministry of Interior sounds alarm on advanced cyber scams involving data theft and financial fraud.
KUWAIT CITY, March 2: Decree-law No. 10/2026 on regulating the digital commerce sector was published in the official gazette, ‘Kuwait Al- Youm’, on Sunday. This is a comprehensive legislative framework aimed at keeping pace with rapid developments in the digital economy, boosting trust in electronic transactions, protecting consumers, and supporting the investment and innovation environment in the country.
The general provisions stipulate that no activity should be conducted in the digital commerce sector without registering in the Ministry of Commerce and Industry. Chapter Two mandates the ministry to regulate the digital commerce sector, oversee the implementation of the law and its executive regulations, issue regulatory decisions, establish electronic registers for product and service providers, and develop registration forms, systems, and fees. Chapter Three obligates product or service providers to disclose their basic data and contractual terms, issue electronic invoices, provide a mechanism for receiving complaints, guarantee consumer data protection, and implement cybersecurity measures issued by the competent authorities.
The law includes a chapter on consumer protection in electronic contracts, recognizing the consumer as the weaker party in the relationship. It stipulates the consumers’ right to correct errors before finalizing the contract, return the product within 14 days of receiving it or signing the contract, and receive a refund using the same payment method without incurring additional costs in certain cases.
It regulates advertising and promotion through digital media, as well as prohibits the inclusion of false or misleading information, anything that violates public order or morals, use of logos or trademarks without legal basis or statements that mislead the consumer. A 24-hour grace period is granted to rectify any violation before further action is taken. It permits the use of influencers in commercials, provided that the nature of the contractual relationship is disclosed, transparency is maintained, and no fraudulent or deceptive practices are promoted. It also addresses the provisions for documents, records and electronic signatures, granting them legal validity if they follow the regulations and specifying the circumstances under which an electronic signature may be revoked.
Chapter Seven stipulates that service providers must implement cybersecurity standards issued by the Central Bank of Kuwait and other relevant authorities, regularly update their systems to address threats, and restrict electronic payment services to electronic platforms. The law requires entities licensed by the Central Bank to adhere to the regulations, while prohibiting the imposition of additional fees for using electronic payment methods, unless it is in accordance with the guidelines. It stipulates the formation of two specialized committees: the first to investigate, document and prove violations, and the second to resolve disputes related to digital commerce between providers and consumers.
Serious violations are referred to the Public Prosecution. The section on penalties includes fines, which are doubled for repeat offenses, closure of the offending store, confiscation of equipment used in committing the violation, and accountability for the de facto manager of the legal entity if his knowledge of the violation is proven. It mandates the concerned minister issue the implementing regulations within one year of its publication in the official gazette. The law shall take effect one month after the regulations are published.
By Jaber Al-Hamoud Al-Seyassah/Arab Times Staff
