UAE: Major firms pledge to sell safe, genuine products online; tighten checks on third-party sellers

The companies that signed the pledge were Amazon, Noon, Sharaf DG, Eros, Nikai, Samsung and others

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Published: Mon 19 Aug 2024, 1:48 PM

Last updated: Tue 20 Aug 2024, 10:37 AM

E-commerce players in the UAE will tighten inspections of products sold through their platforms, especially those of third-party sellers, to ensure that they’re safe, genuine and safe for consumers in the Emirates.

This came as part of the Compliance Pledge signed by 11 leading e-commerce operators in the country on Monday with the UAE’s Ministry of Industry and Advanced Technology (MoIAT).

The companies that signed the pledge were Amazon, Noon, Sharaf DG, Eros, Nikai, Samsung and others.

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While speaking to Khaleej Times after signing the pledge, Nilesh Khalkho, CEO at Sharaf DG, said they have put in place checks and balances to ensure that genuine third-party sellers are onboarded.

“On e-commerce platforms, products are being sold not only by authorised distributors but by third-party sellers also. They have to source products which are authorised and safe so that consumers feel safe when buying products from e-commerce operators,” he said, adding that now they will do more to ensure that genuine products are sold online.

“E-commerce players have to take major control. When we list the product, we will ask for Esma (Emirates Authority for Standardisation and Metrology) certificates. When we onboard the product in our fulfilment centres, we need to scan and see if the right products are getting into our fulfilment centres before they are delivered to consumers. It is a major step to ensure right and authorised products are being sold in order to bring a major change,” he said.

He elaborated that almost 50 per cent of Sharaf DG’s online sales come from third-party sellers.

“We screen third-party sellers’ products very carefully. When we onboard them, we will ensure that they have a trade licence, authorisation from a distributor or agent and are sourcing products from the right source. We have to check Esma's certification as well," he said.

"For consumers, he suggested that they should not buy products only for the sake of low prices at the risk of health and safety. “They have to be aware of where the product is coming from and whether it is genuine. They should not just look at the price," Khalkho added.

The UAE’s e-commerce market has been growing significantly over the years, reaching $5 billion this year and is projected to reach $9 billion by 2026.

“With such a significant opportunity for growth, we should not forget the important role of operators in ensuring products sold in our markets are safe, reliable and compliant with relevant regulations. All the signatories of this pledge today share this sense of responsibility and ensure that online products comply with regulations and that standards are sold,” said Omar Ahmed Suwaina Al Suwaidi, undersecretary of MoIAT.

Al Suwaidi added that this is a voluntary initiative and it will bring more confidence in terms of quality and safety of the products that are offered online.

“We proactively ensure that when these entities publicly commit to make a compliance pledge, it gives confidence to consumers,” he said, adding that the ministry has legislations that take into account feedback from the private sector.

Paras Shahdadpuri, chairman of Nikai Group of Companies, said the Compliance Pledge will make the UAE's e-commerce platforms more reliable and trustworthy, leading people to buy products with greater confidence.

“The purpose of the pledge is to ensure that products that are sold online are safe, reliable and original. There have been talks of some e-commerce platforms not behaving responsibly as they should, but after this pledge, I am sure they will be self-restrained and self-regulated. We should be responsible and follow regulations as it will further boost confidence among the consumers,” he said.

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