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UAE: Dh100,000 fine for selling defective cars; buyers can take legal action

KT reader wants to know his legal options in case of buying defective secondhand cars

Published: Sun 5 Jan 2025, 8:13 AM

Updated: Mon 6 Jan 2025, 7:58 AM

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Question: I recently bought a secondhand car listed on a website. However, multiple technical issues have developed. My mechanic says the seller likely hid the problems before selling the car to me. The seller was not a dealer, but someone who owned the vehicle. I called him, but he said it was not his problem. What are my legal options in this case?

Answer: It is assumed that the seller who sold you the secondhand car has provided you with a warranty for a certain period from the date of purchase.

In the UAE, a seller is required to provide the right description of a product to a consumer and should not mislead the consumer while selling a product. This is under Article 17 of the Federal Law No. 15 of 2020 on Consumer Protection amended by Federal Decree-Law No. 5 of 2023 and Article 8 of the Cabinet Decision No. 66 of 2023 Concerning the Executive Regulation of the Federal Law No. 15 of 2020 Concerning Consumer Protection. The provisions of the law as mentioned earlier are as below:

Article 17 of the UAE Consumer Law says: “The Advertiser, the Supplier and the commercial agent are prohibited from describing the good or service in a manner that contains incorrect data and from making any misleading advertisement in connection therewith.”

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Article 8 of the Cabinet Decision No. 66 of 2023 says: “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 false or misleading impression to the consumer, in particular if the claim includes one or more of the following elements:

1. Nature, composition, substantial description, constituent elements, quantity, shape or appearance of commodity.

2. 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.

3. Country of origin, country of export or the commodity producer.

4. Terms and procedures of contracting including after-sale service, warranty, and price and way of payment.

5. Awards, certification or quality marks.

6. Trademarks, statements or logos.

7. Characters of commodity or service and the expected results of their use."

Furthermore, while a seller is selling a secondhand product, he or she needs to mention the condition of the said product and the advertisement should not be misleading to a consumer.

This is by Article 7 of the Cabinet Decision No. 66 of 2023, which states: “The supplier offering used, renovated or defective commodities that do not result in any harm to health or safety of the consumer, shall apparently advertise the condition of the commodity on the commodity, as well as at the place where the supplier's activity is practised, in a way that shall not create a false or misleading impression to the consumer. The condition of the commodity shall be described in the concluded contract or the issued invoice.”

Moreover, in the event a seller offers a product with a warranty for a specific period, such a warranty should contain various particulars as mentioned in Article 12 of the Cabinet Decision No. 66 of 2023. In addition, Article 13 of the Cabinet Decision No. 66 of 2023 mentions the supply obligations related to the implementation of warranty.

Additionally, a consumer may have the right to claim compensation from a seller if the product sold by a seller is defective. This is by Article 24 (1) of the UAE Consumer Law, which states: “The Consumer shall have the right to claim compensation for personal or material damages sustained by him as a result of using the Good or Service, by the legislation in force in the State, and any agreement to the contrary shall be null and void.”

The UAE Ministry of Economy or a competent authority in each emirate is authorized to receive complaints from consumers. This is in accordance with Article 35 of the Cabinet Decision No. 66 of 2023.

Furthermore, Addendum No. 2 of Cabinet Decision No. 66 of 2023 related to the Table of Financial Penalties imposed on a seller states that a seller may be imposed with a penalty of Dh100,000 for offering defective used or renovated products.

Based on the aforementioned provision of law, you may file a complaint with competent authority in the emirate which has jurisdiction against the individual who has sold you his secondhand car because he misled you by not disclosing to you the condition of the car. However, if you have a warranty for the said car issued by the seller then you may only claim for warranty with the seller if there is a defect or breakdown in the car during the warranty period.

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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