Question: I believe a used car showroom knowingly sold me a defective vehicle. Does the sale of used cars fall under the Consumer Protection Law? How is this matter investigated?

Answer: Based on your inquiry, it is assumed that you signed a purchase agreement with the seller when buying the used car and that the seller provided a warranty from the date of purchase. Therefore, the provisions of the UAE Consumer Protection Law and its executive regulations are applicable.

In the UAE, Article 3 of Law No. 15 of 2020 on Consumer Protection, as amended by Federal Decree-Law No. 5 of 2023, stipulates that the provisions of this law apply to all goods and services provided in the UAE, including transactions conducted by suppliers and commercial agents. The law does not explicitly exclude used goods from its scope.

Consequently, the sale of a used car by a licensed dealer to a consumer falls within the framework of the UAE Consumer Protection Law, particularly in cases where the supplier has concealed major defects, provided misleading information about the vehicle's condition, or engaged in any other unfair commercial practices.

The seller is obligated to provide a precise and accurate description of the product to the consumer and must not mislead them at the time of sale. This is in accordance with Article 17 of the UAE Consumer Protection Law and Article 8 of Cabinet Decision No. 66 of 2023 regarding the Executive Regulations of Federal Law No. 15 of 2020 on Consumer Protection. The provisions of the aforementioned laws are as follows:

Article 17 of the UAE Consumer Protection Law

The advertiser, supplier, and commercial agent are prohibited from describing the product or service in a manner that includes false data and are prohibited from engaging in any misleading advertising regarding it.

Article 8 of Cabinet Decision No. 66 of 2023

The description, advertisement, or presentation of a product or service is considered deceptive if it includes a misleading claim that directly or indirectly creates a false or misleading impression for the consumer, especially if the claim includes one or more of the following elements:

1. The nature, composition, essential description, components, quantity, shape, or appearance of the product.

2. The source, unique characteristics, authenticity, manufacturing method, production date, expiration date, conditions of use, consumption warnings, weight, size, number, quantity, measurement, calibration, capacity, standard, or any other criteria.

3. The country of origin, exporting country, or manufacturer of the product.

4. Contract terms and procedures, including after-sales services, warranty, price, and payment method.

5. Awards, certificates, or quality marks.

6. Trademarks, statements, or logos.

7. Characteristics of the product or service and the expected results from their use.

Furthermore, when selling a used product, the seller must declare its condition and ensure that the advertisement is not misleading. This aligns with Article 7 of Cabinet Decision No. 66 of 2023, which states: A supplier who offers used, refurbished, or defective goods, provided these goods do not cause harm to the health or safety of the consumer, must clearly and conspicuously declare the condition of the goods on the item itself and at the supplier's place of business, in a way that does not create a false or misleading impression for the consumer. The condition of the goods must be described in the concluded contract or the issued invoice.

Additionally, if the seller offers a product with a warranty for a specific period, the warranty must include the details prescribed in Article 12 of Cabinet Decision No. 66 of 2023. Article 13 also specifies the supplier's obligations regarding the implementation of the warranty.

A consumer may also claim compensation from the seller if the sold item is defective. Article 24, Clause 1 of the UAE Consumer Protection Law stipulates: The consumer has the right to claim compensation for personal or material damages sustained as a result of using the product or service, in accordance with the laws in force in the country, and any agreement to the contrary is null and void. The UAE Ministry of Economy or the competent authority in each emirate is authorized to receive consumer complaints under Article 35 of Cabinet Decision No. 66 of 2023.

Moreover, Annex No. 2 of Cabinet Decision No. 66 of 2023, regarding the schedule of financial penalties imposed on sellers, stipulates that a seller may be subject to a fine of AED 100,000 for offering defective used or refurbished products.

Based on the above laws, you may file a complaint with the competent authority in the relevant emirate against the individual or entity that sold you the used car and misled you by failing to disclose its true condition. However, you must convince the relevant authority that the seller misled you.

Applicable Laws

Federal Law No. 15 of 2020 on Consumer Protection, as amended by Federal Decree-Law No. 5 of 2023

Cabinet Decision No. 66 of 2023 regarding the Executive Regulations of Federal Law No. 15 of 2020 on Consumer Protection

Disclaimer: The information provided above is for general guidance only and does not constitute legal advice. It is recommended to seek formal legal counsel.