The Cabinet has approved the 2025 Decree-Law regulating work in Kuwait’s digital commerce sector, establishing a comprehensive legal framework for online trade, consumer protection, and oversight of service providers.

The Ministry of Commerce and Industry will serve as the primary authority responsible for issuing regulations, supervising electronic platforms and auctions, and maintaining official records for all digital commerce businesses.

Under the new law, no individual or company may operate in digital commerce without registering with the Ministry. Service providers must clearly disclose their identity, commercial registration details, contact information, final prices, payment methods, delivery terms, and return policies.

Consumers are granted the right to return or exchange goods within 14 days under specific conditions, with exceptions for perishable items, customized products, and certain digital services.

The law places strong emphasis on transparency and consumer rights. Providers must issue electronic invoices in Arabic, respond to customer complaints in a timely manner, and notify consumers of any delivery delays. If the delay exceeds 14 days beyond the agreed date, consumers may cancel the contract and receive a refund.

Digital advertising is also addressed in detail.

Advertisements must include accurate information about the provider and the product or service. Any misleading, false, or unauthorized promotional content is prohibited. Social media influencers are explicitly barred from participating in deceptive campaigns, and all payments to them must be made through approved channels that comply with anti–money laundering standards.

To handle violations, the law establishes a Violations Committee within the Ministry, chaired by an advisor from the Fatwa and Legislation Department, reports, Al-Jarida daily.

This body may refer cases to the Public Prosecution, send them to a specialized dispute committee, or order temporary closure of online stores for up to 30 days.

A separate Digital Commerce Dispute Settlement Committee, chaired by a judge, will adjudicate disputes between consumers and service providers regarding product defects, conformity to specifications, or fulfillment of contract terms. It will also review appeals related to store-blocking decisions and violations referred by the Violations Committee.

The law sets strict penalties for non-compliance, including imprisonment of up to one year and fines ranging from KD 1,000 to KD 10,000. Penalties apply to anyone submitting forged documents, offering illegal products, or violating orders issued by the dispute committees. Repeat offenders face doubled penalties.

The decree also addresses cybersecurity, electronic payments, and innovation in digital commerce. Providers must comply with National Cybersecurity Center directives, use only Central Bank-licensed payment channels, and avoid imposing unauthorized fees.

The Ministry may also approve pilot projects for new technologies—such as blockchain or smart contracts—before integrating them into Kuwait’s legislative framework.