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UAE: Can a second-hand buyer sue the seller for not disclosing major accident?

Do warranty rules or consumer protection laws apply in this situation?

Published: Sun 30 Jun 2024, 9:16 AM

Updated: Sun 30 Jun 2024, 10:06 PM

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Question: I bought a second-hand vehicle directly from the owner after seeing his ad on a classifieds website. I found out recently that the vehicle was involved in a major accident, but the owner did not disclose this to me. Since I was not made aware of the accident, I paid the owner the current market value of the vehicle. In this situation, do I have a legal case against him? Is there anything I can do? Do warranty rules or consumer protection laws apply in this situation?

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Answer: In UAE, it is an obligation of the supplier/seller to provide the full correct details of the product he/she intends to sell. This is in accordance with Article 6 (1) (e) of Cabinet Decision No. 66 of 2023 Concerning the Executive Regulation of the Federal Law No. 15 of 2020 Concerning the Consumer Protection which provides for the Obligation of the Suppliers upon contracting. The said Article reads as:

"1. The supplier shall provide the consumer with an invoice that proves the dealing or contracting with the supplier regarding the commodity or the service, without incurring any further burdens by the consumer. The invoice shall contain the following particulars:

a. Name, address and contact information of the supplier.

b. Date of invoice.

c. Description of commodity or service.

d. Unit of sale, quantity of commodity or number of sold units.

e. Condition of the commodity, if it is used.

f. Price of commodity or service, in the local currency.

g. Warranty period. h. Date of delivery of commodity or provision of service.

h. Serial number of commodities and the contained parts, as per the nature of each commodity.

i. Commercial registration number.

j. Tax number (if any).”

Furthermore, Article 8 of Cabinet Resolution No. 66 of 2023 states that advertisements or offers of goods or services are considered deceptive if they contain misleading claims that could create a false impression for consumers.

“Article 8 - Misleading Advertisement of Commodity or Service

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:

  • Nature, composition, substantial descriptions, constituent elements, quantity, shape or appearance of commodity.
  • 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.
  • Country of origin, country of export or the commodity producer.
  • Terms and procedures of contracting including after-sale service, warranty, and price and way of payment.
  • Awards, certifications or quality marks.
  • Trademarks, statements or logos.
  • Characters of commodity or service and the expected results of their use.”

In accordance with Addendum 2 of the Cabinet Resolution No. 66 of 2023, if an individual is guilty of providing misleading advertisement of prices of the provided commodities and services provided under Article 8 of the Cabinet Resolution No. 66 of 2023, he may be fined up to Dh100,000.

Article 12 of the Federal Law No. 15 of 2020 Concerning the Consumer Protection, states: "In the event that a malfunction is found in the product or service, the supplier shall repair or replace the same, return the product and refund its price, or re-perform the service without charge, in accordance with what is specified by the implementing regulation of this law."

In view of the provisions above, it is an obligation of the seller to provide you with the correct information at the time of selling the vehicle.

You may claim compensation for the same under the relevant provisions of the Consumer Protection Law. If you experience any issues with the vehicle, you may request the owner/seller to bear the cost of repairs of the said vehicle. If the seller disagrees, you may initially file a complaint with the Consumer Protection Department at the Department of Economic Development in the emirate where you reside, or where you had completed the purchase of said vehicle. If there is no amicable settlement, you may file a case against the seller in the court which has jurisdiction in the UAE, claiming relevant monetary compensation.

If the vehicle is under manufacturer warranty at the time of the accident, you may be able to get any malfunction fixed subject to the provisions of the warranty.

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.

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