dynamics of consumer protection across saudi arabia

40 J. Global Business Advancement, Vol. 5, No. 1, 2012

Copyright © 2012 Inderscience Enterprises Ltd.

Dynamics of consumer protection across Saudi Arabia

Obaid Saad Al-Abdali Department of Management and Marketing, College of Industrial Management, King Fahd University of Petroleum and Minerals, Dhahran, Saudi Arabia Email: [email protected]

Abstract: The Saudi consumer at most of times is playing the role of the passive recipient without having a real impact on the choice of the goods and services displayed in the market. There are many government bodies charged with regulating and monitoring market activities in Saudi Arabia, ensuring a high standard of business conduct and good market practices for transaction. However, this did not prevent the occurrence of some undesirable, unfair and deceptive practices as well as fake products in the Saudi market.

Keywords: consumer; protection; Saudi Arabia; consumer rights, prices.

Reference to this paper should be made as follows: Al-Abdali, O.S. (2012) ‘Dynamics of consumer protection across Saudi Arabia’, J. Global Business Advancement, Vol. 5, No. 1, pp.40–70.

Biographical notes: Obaid Saad Alabdali is an Assistant Professor of Marketing at King Fahd University of Petroleum and Minerals. He worked in both the government and private sectors.

1 Introduction

The rising prices in the Saudi markets nowadays resulted in demanding official channels and NGOs for consumer protection in order to defend consumers’ rights and spread awareness within the consumer society. These official channels and NGOs help protecting consumers systematically from the merchants or businesses that engage in fraud or specified unfair practices. They also help empowering the consumers and guaranteeing their rights.

The Ministry of Commerce and Industry (MoCI) received criticism in the audiovisual media. Moreover, the Saudi press has also condemned the failure of some government agencies with regard to consumer protection. There are certain groups and societies that shouldered the responsibility of demanding the establishment of consumer protection agencies and organisations: government or NGO.

I think the role that should be played by such entities and organisations should not be traditional. In other words, it should not be confined merely to questioning about the reason behind prices increases. Instead, their role should extend to using the companies

Dynamics of consumer protection across Saudi Arabia 41

that are proven to have engaged in fraud or unfair practices or violated the consumer rights, demanding appropriate compensation for the consequent damages resulting from such deceptive and unfair trade practices. Such consumer protection organisations should also have the necessary authorities and power to start a lawsuit against the violators of Consumer Protection Laws.

In addition, their role should include controlling misleading and false advertisements and prosecuting the companies that use such false, deceptive or misleading advertising and the media outlet that run those ads.

I have read an advertisement in an English computer magazine on a laptop that is sold for a very tempting price, less than the market price! I called to inquire about the difference in price and I was told that the company does not charge any storage costs and that the company’s role is merely to mediate between the manufacturer and the buyer. I sent them a cheque for £1000 and I was to receive the device within ten days.

The ten days passed and I did not receive the device, I called them on their number but there was no answer!

I contacted the Consumer Protection Association that asked me for a photocopy of the cheque or its number as well as a copy of the advertisement that was published in the magazine. The Consumer Protection Association hired a lawyer, free of charge, to sue the magazine that published the misleading advertisement. The magazine demanded a full refund from the manufacturer and unreservedly apologised for the misleading advertisement; an apology has been published by the newspaper.

Walking around our local markets in large or small Saudi cities, especially in popular markets, evokes amazement at the spread of counterfeit commodities and defective products that are detrimental to human health and to the environment as well. One cannot help but questioning about the role of competent authorities and about their noticeable absence.

Lay consumers may wonder how traders can sell counterfeit or fake goods. Can the merchant set the price he/she desires for his/her product or service in Saudi Arabia, for example? Well, the answer is that the Saudi Arabia’s economic system does not allow the merchant to sell fake and adulterated goods, but in terms of price, he/she is entitled of setting the price that suits him/her within the framework of the Saudi Arabia’s free market economy.

Therefore, I believe that when the traders set the price of the commodities, they always take into consideration three important elements: first the costs of the product or the service as a minimum; they cannot sell their product or service for less than its cost price except in certain circumstances or for specific reasons that are not necessarily morally accepted such as undermining his/her weak competitors. However, the traders cannot do so for long and most laws criminalise such an act, including the Saudi laws. The second element is the prices of the competitors’ products. This element cannot be ignored except in certain cases, for example, when the trader’s good reputation or high-quality services and commodities are incentive enough for consumers to purchase them, even if the price is high. The third and last element that controls the commodity’s price is the client’s desire and ability to pay the desired price.

This is the key concept upon which free market, in its simplest forms, is founded, i.e. fostering freedom of price-setting, allowing the trader to set the price that commensurate with the type of competition in the market and the collateral products and services.

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However, the competent authorities still monitor the prices and commodities in the markets, making sure that the commodity is labelled and that the information provided on the label, including the price, are clearly visible and comprehensible so as not to interfere in the increase or decrease in prices.

Instead, the concerned authorities allow me and you, to decide either to purchase the commodity at the indicated price, negotiate it with the seller or not to buy it.

The question that I raise in this paper is: can the consumer in the Saudi market assess and evaluate the different goods and services in terms of quality and price? Can the consumer differentiate between original and counterfeit or defective goods?

I think it is difficult for the consumers to know that, because the displayed products in our Saudi markets, thankfully, are too numerous to be counted and are multiplying periodically. The number of new products is increasing and this leaves the consumer confused. For example, there are many types of rice in the markets; almost types according to the MoCI. There are also many kinds of coffee, toothpastes, cars, etc. The competition over the Saudi consumer’s money is increasing and the daily advertising messages (from diverse media outlets) amount to more than a thousand advertisement in newspapers on the streets, on the radio, on the internet or elsewhere. All such advertisements incite the consumers to purchase and provide multiple options for them. Some of them are selling dreams to the innocent consumers. The Saudi consumers have been victims of many twisted unfair methods of competition and unfair, fraudulent or deceptive acts and practices. Most of us have encountered countless experiences of buying defective products or commodities with unfulfilled warranties, product out of warranty or cases when the manufacturers charge exaggerated prices.

Therefore, consumer protection agencies play a significant role in protecting the markets, sellers and consumers and the market economy as a whole.

In this paper, the readers will recognise the importance and role of these consumer protection organisations in the Saudi market.

This paper is the outcome of my personal experiences in the British market for a period of time, experiences in the US market, multiple visits to many developed countries, my practical experience that I gained as a decision-maker in some of our local companies and as a consumer of many goods in the Saudi market, my academic experiences in the field of marketing, and follow-up on the press addressing this subject in recent times. The Saudi press brought up a lot of serious writings by our Saudi writers, giving social dimensions to our subject matter. These voices echoed in the decision-making circles.

This paper is the product of those commendable efforts, through which I hope that this subject gets the attention that it deserves. Consumers are precious and their rights should be treasured and respected. Saudi Arabia is keen to provide citizens their demands in order to achieve people’s welfare and well-being. The civil society associations are taking shape and the country is encouraging such a vital step.

Therefore, this paper is issued in its due time and I hope that it would have a major impact on spreading the marketing culture and rationing of consumption as well as consumer rights and duties among the workers in the field of marketing and sales.

I ask Allaah to render this paper the first step in the thousand mile journey of creating culture of consumer protection in Saudi Arabia.


2 Marketing culture

Consumer policy stems from fostering market transparency allowing the consumer to be the decision-maker in choosing the best alternatives among the goods available in the market, and empowering consumers with confidence and trust when dealing with companies: local or global companies, or even with the owner of a small grocery, manufacturer of an industrial or agricultural product or a service.

Our Saudi market is still a budding market that lacks many things, the most notable of which are consumers’ poor marketing culture, poor government supervision over the traders, and to some extent the greed of some traders.

Despite the importance of consumer protection, we do not have the due tools and methods to protect consumers’ rights. Therefore, we should avail ourselves of the experiences of developed countries; as they have accumulated good experiences. There is no harm in benefiting from these experiences, especially as they do not conflict with our laws or with the Islamic Sharee‘ah; yet, they are derived from the need to serve and protect Man, and this is encouraged by the Islamic religion.

I think that the consumer protection laws in Saudi Arabia should see the light and should have legal controls to protect the Saudi consumers through two paths: Through laws and legislations enacted by the government aiming at protecting the consumers. We will address later on the laws and regulations enacted by the Saudi government to protect the consumers.

1 Through NGOs, civil society organisations and various government bodies that should work fairly and embrace neutrality.

It is our destiny the Saudi market is open to global markets and the world as a whole, especially since our accession to the WTO and this requires us to act quickly in order to give the Saudi consumers the protection they deserve. The world is changing rapidly and there is no place for slow countries. I liked the expression of a businessman when asked about the delay in Saudi Arabia’s accession to the WTO, he said “In its beginning the organization was similar to the slow train; any passenger can get on it easily, but later on as it grew stronger, it has become more of a high-speed express train; it is difficult for passengers to get on high-speed train while it’s still moving”.

Neighbouring markets have developed consumer protections regulations and enacted laws to protect their consumers. Some newspapers have published a story about a Saudi young man in Dubai who was asked by the barber to pay 40 AED for shaving, although the price posted on sign hanging on the walls inside the barber shop was 10 AED. He contacted the consumer protection association there and this led to the closing of this shop within half an hour and the barber too was arrested and accompanied to the police station for investigation and punishment.

As long as our goal is having a ‘free market economy’, which is a noble objective that we all seek to achieve, it is essential to enact laws and legislations that protect the consumers and establish civil consumer protection association as well as governmental bodies to protect the markets and consumers alike. The scope of such consumer protection associations’ activities should extend to cover all cities and villages in our beloved kingdom.

Our ministries, relevant government agencies, intellectuals, businessmen and chambers of commerce should work hand in hand for such consumer protection association to see the light and work in the Saudi market as quickly as possible.

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Although the merchants in Saudi Arabia provide a major national service to their country and contribute to the development of its economy, there are a few of them who are unscrupulous, as is the common case with any community at any every time and place. The ultimate goal of such unscrupulous traders is making profits without regard to the means by which they get these profits. They may promote fake or defective goods, and sometimes products that are harmful to health.

If such dishonest merchants, as few in number as they are among our producers and marketers, are left unsupervised or unmonitored; this may exacerbate the problem, incurring harms and ill effects on all segments of society, including the majority of honest traders and manufacturers.

There are several government bodies in the Kingdom that shoulder the responsibility of monitoring the quality of products and combat commercial fraud in the market, such as the MoCI, the Saudi Standards, Metrology and Quality Organisation (SASO), the various municipalities or municipal councils. There is a good level of consumer awareness and consumers’ knowledge of what is good for themselves, but this does not diminish the importance of such associations to protect them and make their voices heard by the authorities having jurisdiction.

The consumer protection that we mean includes all the efforts that are exerted to protect the consumer from himself first, and from unfair practices of some traders through demanding the enactment of legislations and laws regulating the market and claiming the protection of consumers, whether individuals or groups. Such legislations and laws aim at protecting consumers, preventing the infringement of consumers’ rights or and exploitation of their ignorance. The advocates of consumer protection laws differentiate between three types of protection.

2.1 First, compulsory protection

This refers to the efforts (of the government authorities having jurisdiction) exerted by government agencies concerned with consumer protection, examples on these bodies in the Saudi market are: the MoCI, Ministry of Municipal and Rural Affairs, Ministry of Health, and other relevant bodies that are concerned with protecting the rights of the consumer.

These associations oblige the merchants to observe honesty and fair dealing in trade, ensuring that trade is carried out lawfully, fairly and safely, foster non-exploitation of the consumers’ ignorance, and the preservation consumers’ money, health, as well as the environment. They also ensure that all traders apply the due consumer protection laws and determine appropriate sanctions in case of breach thereof.

Such efforts will not be effective if there were no following up, control, stricter law enforcement, and assistance from the consumers themselves to report violations and stop dealing with traders who violate consumer protection laws.

2.2 Second, optional protection

This refers to an agreement among traders to develop standards and codes of conduct to which they all adhere in order to enhance their businesses, maintain the integrity of their environment, and help consumers to know their rights and duties. Therefore, they identify certain specifications and standards for dealing with consumers. These specifications and


standards are optional and require the traders’ belief in them. An example of that in the Saudi market is the chambers of commerce and industry throughout the kingdom of Saudi Arabia.

2.3 Third, defensive protection

This refers to the efforts adopted by the lay consumers or those who claim their rights. These are non-official efforts that aim at defending consumers and protecting their rights. This means that such entities are not affiliated with any official or government body. They are independent civil societies, even though they operate under the umbrella of civil society institutions that are subject to the laws of the state that promote consumer protection.

I think that the Saudi market is in dire need of all these kinds of protection, because our market is a large market and there are many wrong and unfair practices done by some traders, particularly as the government aims at providing a decent life for Saudi citizens and residents, protect them from the greed of merchants, and prevent counterfeit goods that are hazardous to the consumers’ health or to the environment as well.

3 Consumer rights protection associations (consumerism)

The producers and suppliers in the Saudi market, companies and businessmen, are still far from the concern of these associations and safe from their control and supervision; since there are no consumer rights protection associations in the Kingdom. The rights of the consumers in the Saudi market are violated and they get insufficient attention to their interests. However, if we compare the Saudi situation with the US market, for example, we will find that companies and businessmen are heedful of these associations, which will have a deterrent effect on manipulators. This drives them to take consumer rights into account during all stages of product manufacturing and distribution.

Consumer protection associations constitute the best support of the relevant government agencies, in terms of monitoring the companies and businesses and claiming the rights of the consumers, which is the very role of the government in the application of the state regulations. Their work is complementary to that of the state apparatus to serve the citizens, and this is what we hope to see in our beloved Kingdom. The first appearance of consumer protection associations in the US market was in 1900 AD due to the high prices in the meat market. Then, consumer protection associations reappeared in the picture in the middle 1930 AD for the same reason.

4 Consumer rights

The clear and strong presence of consumer protection associations was at the beginning of the 1960s; around 1960 AD, after the massive development that occurred in the production of goods and their specifications, due to the technical expansion of and the high level of education.

The environment was suitable for the emergence of these associations; since the US public started to develop a hostile attitude, to some extent, towards the giant companies that were dominating the market. Mr. Ralph Nader2 is the father of the consumer

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protection movement. He takes the credit for the emergence of the consumer protection movement and demanding consumer rights, in addition to a group of other writers who called for the protection of consumers from commercial fraud and greedy corporations.

One of the immediate results of the emergence of the consumer protection movement was that US President John F. Kennedy announced a set of pillars upon which consumer rights should be based, namely:

1 The right to safety

2 the right to be informed3

3 the right to choose4

4 the right to be heard.5

In the meantime, the US Congress conducted a research and an inquiry in most of the US commercial and industrial sectors and these efforts resulted in the proposal of many laws and legislations that protect consumers. Consequently, the consumer protection associations, relaying on such laws and legislations, have gained their strength and authority. They shouldered the responsibility of ensuring the implementation of consumer protection laws and legislations, in addition to striving to demand more rights for consumers. The idea of these consumer protection associations spread from the USA into the whole world and the recognition of consumer rights spreads in the rest of the world markets, especially in the European market.

4.1 What does a consumer protection association mean? What does it consist of?

Consumer protection association is an organised movement by a number of individuals and some government agencies in order to claim the protection of the consumers, empowering them with the needed strength while dealing with the sellers and traders.

The reason for this consumer protection movement was the need to have a third party to represent the consumer and to balance the power that was enjoyed by the sellers and traders. The most important manifestations of this movement were the following:

(The traders have) the right to sell any commodity of any size and in any form the seller wants provided that it is safe. Dangerous [to human life or health] products should carry warning labels that explain how they should be used, under what circumstances they are likely to cause harm, and what steps can be taken in an emergency involving the product.

(The traders have) the right to set the price, providing that there should be no discrimination between the buyers.

(The traders have) the right to spend any sum of money to promote the product as long as it is within the limits of competition law.6

(The traders have) the right to use any advertising message provided that it is not deceptive or misleading.

(The traders have) the right to the use of instalment sales, as long as non-misleading and within the competition law.


4.2 The consumer rights can be summarised as follows

The right to purchase any goods offered for sale.

The right to safety: consumers always expect that they get the safe commodity.

The right to commodity’s performance as promised by the seller.

Comparing the consumer’s rights and those of the seller, we find that they are strongly in favour of sellers and producers. It is true that the consumer has the right to refrain from purchasing and then there will not be selling, but there is a belief that most of the buyers lack the accurate information and needed knowledge to make a correct and rational buying decision, which requires a degree of protection from the exploitation of sellers.

Therefore, the advocates of consumer protection added other rights, including:

The right to know basic information about the commodity or the right to consumer education.7

The right to protection against suspicious goods and the marketers’ immoral practices.

The right to goods and marketing policies leading to a better life.

Each and all of these rights give rise to additional claims by those who demand protecting consumer rights. The right to be informed, for example, requires knowing all the details on bank loans, how to calculate the interest on these loans, the true cost of each product, the ingredients and components of each commodity, and the production or expiration date and so on. Therefore, I believe that consumers should not settle for demanding such rights that are already guaranteed, but must shoulder the responsibility of protecting their rights and the rights of others without waiting for anyone to do that for them.

There are multiple ways for achieving that: when the customer thinks he/she (or others) had been cheated or ill-treated by traders and sellers, he/she can telephone the Director of the company, send a letter or an email to the company’s headquarters, if it was a global company, explaining the problem. He/she can also contact the press and media or purplish the information available to him among his/her friends and acquaintances.

4.3 Consumer rights also include the following

1 The right to safety: the right to be protected against products and services harmful to human health or life.

2 The right to satisfaction of basic needs: to have access to basic, essential goods and services, i.e. adequate food, clothing, shelter, healthcare, education, public utilities, water and sanitation.

3 The right to a healthy environment: to live and work in an environment which is non-threatening to the well-being of the present and future generations.

4 The right to consumer education: to acquire knowledge and skills needed to make informed, confident choices about goods and services, while being aware of basic consumer rights and responsibilities and how to act on them.

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5 The right to be heard: this right asserts the ability of consumers to voice complaints and concerns about a product in order to have the issue handled efficiently and responsively. The consumer’s opinion be heard during the implementation of government polices to develop products and services.

6 The right to choose: the right to free choice among product offerings states that consumers should have a variety of options, products, and services provided at competitive prices, with a sufficient degree of quality, by different companies from which to choose.

7 The right to be informed: this right states that businesses should always provide consumers with enough appropriate information to make intelligent and informed product choices. Product information provided by a business should always be complete and truthful. Aiming to achieve protection against misleading information in the areas of financing, advertising, labelling and packaging, the right to be informed is protected by several pieces of legislation passed between 1960 and 1980.

8 The right to redress: to receive a fair settlement of just claims, including compensation for misrepresentation, shoddy goods or unsatisfactory services.

I believe that there are other rights that the consumer can personally exercise, namely:

4.3.1 The right to boycott

The consumers in the developed countries have the right to boycott products whose manufacturers are thought to be deceptive, exaggerate in the prices, do not fulfil their promises or any other reason entailing consumers to claim their due rights. This kind of boycott brings about negative impacts on the companies, both on the economic level and with regard to undermining the reputation of the companies and their products. The best example of this in the Saudi market is the boycott of Danish products. Some Danish newspapers published offensive cartoon drawings of the Holy Prophet – peace be upon him. The Danish government did not take a stern action against them which triggered Muslim consumers’ hatred. Therefore, they united their efforts and made use of this peaceful means of protest and boycotted Danish products, promoting their boycott campaign through SMS, emails, forums, etc.

This incurred great losses in the Saudi market for local companies marketing Danish products. Despite the advertisements that were published by the Danish companies in the Saudi newspapers expressing their apologies for what had happened, Muslim consumers exercised their right to boycott. Hence, the Saudi consumer has a powerful influence in forcing the companies to respect him and his/her rights, if he/she made use of such ability and channelled it to serve the public interest.

Boycott8 can be used as a means to exercise political or economic pressure, but as I have mentioned earlier, it should be properly used so as not to undermine the country’s policy or economy. It should be partial, selective and gradual. Consumer boycott is a due right of the consumers guaranteed by the laws and legislations. Consumers should be edified on the facts that enable them to exercise their legitimate right of boycott in this era of openness and globalisation.


4.3.2 The right to buy national products

The right to choose is the due right of consumers that was guaranteed by consumer protection laws and was not hindered by any political constraints.

Therefore, it is the consumer’s right to choose to buy national products and commodities, as is the case in the developed countries as people hasten to buy their national products, even if they were expensive and their quality does not match that of the imported products. People settled for buying national products out of their faith and their love for their country and in order to promote their national products and services.

Such behaviour reflects the sense of national consciousness of the consumers. Consumers’ choice of domestic products does not contradict any universal laws or country’s commitment to open their markets to global companies in the world upon accession to the WTO.

4.3.3 Duties of the consumer

The consumer has rights that must be protected and preserved as well as duties that must be carried out and claimed by the consumer rights associations: government and NGOs. Some of these duties are the following:

Consumers should identify precisely the goods and services they are buying and verify the products’ information and data.

Consumers should hold on to their due rights.

Consumers should cooperate with the competent authorities in the field of consumer protection.

Consumers should file their complaints to the competent authorities when needed.

Consumers should provide any suggestions for the purpose of improving the services that are provided to them.

Consumers should be mindful when buying and conscious about what they purchase.

Consumers should not sign any papers except after reading them and making sure that they are correct.

4.4 Who is the consumer to be protected?

Some experts believe that the word consumer includes all segments of society and refers to whoever obtains a commodity for personal use. Specialists define the consumer,9 whom modern legislations aim at protecting, as the person who contracts with the seller in order to obtain the necessary goods and services is to be used in other than his/her field of professional activity.

The European Court of Justice endorsed this final definition of the consumer that should apply to consumers in order to enjoy the consumer protection regulations. He/she should obtain the commodity used for personal, family or household for non-business purposes, not for manufacture or resale. The reason for that is most likely that the laws attempt to protect the weaker party in the customer–merchant relationship.

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I believe that this definition is prejudicial and unfair; as consumer protection is required whether they were strong or weak. Both weak and strong consumers are buyers and pay their money, time and effort for the commodities and services. Hence, they should be taken care of and their rights should be protected and preserved.

We know that there are several types of consumers that can be outlined in the following points:

1 The customer, who buys the products from the seller, but does not consume them himself, is referred to as non-end user. For example, a mother who buys milk from the grocery store to feed her baby, she is not the consumer of what she had bought, but she is entitled for protection from commercial fraud or defective of products.

2 The end-user or end-consumer, they are buying goods or services for personal use. This is the type of consumers who should be protected by consumer protection laws from the control of a strong seller. An example of end-users is someone who buys a car for personal use.

3 A reseller is a company or individual that purchases goods or services with the intention of reselling them rather than consuming or using them. For example, when someone buys oranges to make orange juice and sell it for other consumers. Was not his/her purpose of purchasing to make a profit for his/her business? Does not he/she deserve to be protected from commercial fraud and deception?

Therefore, I suggest that consumer protection in Saudi Arabia includes all types of buyers regardless of their gender or purpose of purchase. The objective is to establish justice, equality and non-discrimination among people. All are citizens who have the right to protection from injustice, commercial fraud and deception practiced by some merchants with dead conscience and low religiosity and who do not abide by the Islamic ethics that should govern the entire worldly affairs.

Someone may argue that there is no question about the need to protect weak consumers, but those resellers who purchases goods or services with the intention of reselling them rather than consuming or using them are traders who have the ability to claim their rights. Therefore, they should not be protected; we should not waste efforts in protecting them as they have the potential and the legal means to claim their own rights. Well, this is true, but it should be done through professional associations and clear laws that are easy to be observed.

4.5 Psychology and sociology experts along with specialists in marketing ask the following questions with regard to consumers

Who is buying?

What is he/she buying?

Why is he/she buying?

How is he/she buying?

From where is he/she buying?

How often does he/she buy?


This is known as ‘Consumer behavior’10 that should be known by the traders for the persuasion process and the buyer decision-making process. It refers to the consumer buying behaviour and actions at every stage of the purchasing process.

Consumer protection associations are trying to make consumers rather rational in their decisions and actions. A rational consumer11 is he/she who:

Avoid emotional purchases.

Collect as much information as possible before making a purchasing decision.

Buy what he/she needs without being extravagant.

Do not hesitate in his/her decision.

5 Towards consumer protection

5.1 The reality of the Saudi market

Saudi consumer, all praise and gratitude are to Allaah, lives a unique experience that is different from other consumers in the Arab world. Products are exceptionally available everywhere, especially in large shopping malls that are spread in all the Saudi cities. All the available goods and commodities in the US or European markets can be found in the Saudi market. Saudi consumers have become more aware and more selective in their buying and choice of products and services. There are international companies in all major shopping malls in the Kingdom. One visit to one of Saudi markets will leave the impression that one is in the best shopping places in the world.

Some specialists believe that the consumer in the Saudi market should be protected from themselves; as they are voracious consumers who buy what they do not need and are tempted by discounts, offers, and cheap goods to a certain extent. We find the often warnings of government agencies such as the MoCI, Chambers of Commerce, Ministry of Health and the secretariats about defective products or commodities, those that do not match the contract specification, fake or harmful to public health, but, unfortunately, they are popular among some consumers.

In the price negotiation process and arguing about prices with vendors which characterise the Saudi consumer, times of both consumers and traders are wasted. It indicates the lack of trust between the customer and the merchant. In the price negotiation process the more forbearing and patient always wins and those who master the art price negotiation, negotiating everything, even Siwak at the doors of the mosques.

If we assumed that there are 30 consumers visiting the store daily, 20 of which negotiate the price with the vendor for five minutes for each consumer. This means that there are 100 minutes that are wasted in price negotiation and the rest ten consumers, who are not proficient in the art of negotiation, bought the goods at higher prices and accordingly are not satisfied. Therefore, I believe that the consumer has a right to have price labels and tags placed clearly on goods and products and that discounts should be offered within the narrowest limits, as is the case in big shops and stores. They display a fixed price on the price labels and the consumers got used to this method and became satisfied with it. Why should not this be done with regard to all goods in all shops?

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There are some countries that apply very strict laws in this regard, including: requiring all shopkeepers to put price tags on each commodity; whether in clothes, footwear, equipment, or makeup and decorations stores. The price label should be placed in a clear place and who does not abide by such laws would be fined.

Add to that, there are committees from the Ministry of Supply and Trade responsible for monitoring the application of these rules through conducting surprise inspections in order to make sure that all products and commodities have price tags in the store-window displays and that the price tags must be clear to avoid confusion of citizens or strangers. The importers, retailers and wholesalers are also obliged to specify the percentage of their profits.

Moreover, the issue of bank loans worries some government agencies that cater for citizens. Citizens borrow from local banks to buy luxury goods that may not be among the necessities of life. Such debts devour their savings, because they are unable to resist the temptations offered by banks such as prizes and raffles on the loans. Some may borrow to go on a vacation and buy luxury things that may not be so important. It is not surprising to find a consumer riding in a car on loan that is worth 40-fold his/her monthly salary.

The Saudi Arabian Monetary Agency (SAMA) has established a company through which the data of each borrower are recorded and any lending entity can verify the person’s ability to repay his/her debts and this is a commendable effort.

The existing laws and regulations in the Saudi market are mainly concerned with combating commercial fraud and rarely give adequate protection to the consumers.

The observer of consumer protection laws in Saudi Arabia would notices that the government is concerned with public health and safety of goods and products as well as their quality. It is also keen to protect citizens from fraud and deception and unfair business practices. In this sense, the Saudi Commercial Regulations, which were issued as per Royal Decree No.M/32 dated 15th Muharam, 1350 AH (3rd June 1931 AD), stipulated in its fifth Article that all dealers should observe honesty, integrity and honour in their dealings and businesses. Traders should not engage in commercial fraud, injustice, deception or Gharar.12

The Council of Ministers issued a decree No. 66 dated 6th Rabee‘II, 1374 AH, identifying the roles and areas of jurisdiction of the ministry. Combating commercial fraud in all its types, manifestations and forms, was one of the main roles and areas of jurisdiction of the MoCI. Accordingly, the first regulations for combating of commercial fraud was set as per the Royal Decree No. 45 dated 14th Sha‘baan, 1350 AH including 13 articles and identifying the sanctions for the violators of such rules.

The MoCI is also working on the development and review of the regulations for combating of commercial fraud, Saudi Anti Commercial Fraud Regulations. It conducted studies and extensive discussions, which ended in the preparation and drafting of a new integrated law in this regard that takes into account the established and applied principles in combating commercial fraud while complementing the existing deficiencies in current provisions. This new law stipulates severe punishment for the violators, raising the minimum and maximum penalties, developing new deterrent penalties, as well as providing sufficient flexibility in the easy and quick application of the procedures so as to ensure the protection of the consumer effectively. All this was done in the light of the requirements of preserving the public interest and taking into account the conditions and nature of commercial transactions.


The Royal Decree No. M/11 dated 5th JumadaI, 1404 AH, was issued wherein the approval of the Anti-commercial Fraud Law and the executive regulation was issued as well as per the decision of the Minister of Commerce No. 1/3/1327 dated 1st Jumada II, 1405 AH.

Despite of the presence of consumer protection government agencies in the Saudi market such as: MoCI, Ministry of Health, Ministry of Water and Electricity and the Saudi Standards, Metrology and Quality Organisation; the Saudi market is still lacking a competent administration that is concerned with consumer protection, like that was affiliated with the MoCI earlier. Such consumer protection administration was cancelled due to the difference between the title and the roles that had to be carried out by it, i.e. protecting consumers from any harm or offence caused to them.

It was replaced by the General Administration of Quality Supervision, whose role was confined in merely identifying the product’s quality, price and specifications.

In 1921 AH, its name was changed from the ‘General Administration of Quality Supervision’ to the ‘General Administration of Anti-Commercial Fraud’ and its area of jurisdiction included conducting all the supervision activities in the markets and the implementation of the anti-commercial fraud regulations, which were issued as per the Royal Decree No. M/11 dated 29th Jumada I, 1404 AH, and its executive bylaw issued by the Minister’s decision No. 1/3/1327 dated 1st Jumada II, 1405 AH.

The most important features of this law are underlined on the website of the MoCI (see http://www.commerce.gov.sa):

To receive the complaints from citizens and residents, who are subjected to fraud or witnessed unfair practices and violations of consumer protection regulations in the markets, and then investigating the conditions of the offence.

To conduct inspections on markets, shops and warehouses in order to verify the safety of the food supply, foodstuffs and other consumer goods in terms of quality and suitability for human consumption. Add to that, identifying offences according to anti-commercial fraud laws.

To conduct periodic surprise inspection in factories and collecting samples of raw materials and from production lines to be subjected to laboratory testing in order to ensure the compliance with the approved Saudi standard specifications.

To supervise shops announcing discounts in order to verify their commitment to the regulatory decisions and instructions.

To monitoring the commitment to placing the price tags on commodities.

To monitor shops announcing commercial competitions and raffles in order to make sure that they have the necessary licence.

To complete the measures of investigation, confiscation, seizure and sampling for examination and analysis, and the referral of offenders, after the completion of statutory procedures, according to the Anti-Commercial Fraud Commission in order to apply the required regulations against them.

The MoCI, the Ministry of Municipal and Rural Affairs, the Ministry of Health and the Saudi Standards, Metrology and Quality Organisation play positive roles in consumer protection that cannot be overlooked or disregarded. However, such commendable efforts are still do measure up to the aspirations of the consumers. Our Saudi markets abound

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with unfair and immoral practices. There are an abundance of fake, defective and counterfeit goods, consumer rights are still neglected, the marketing culture is still absent in the consumer community, and the consumer rarely get his/her rights if he/she claimed it.

We add our voice to the intellectuals, key figures in civil society sector, some businessmen, and the Saudi Shura Council,13 as well as the MoCI who demanded the establishment of a body or an association to protect the consumers. Such a body or an association should enjoy administrative and financial independence that enables it to operate properly in a suitable and professional environment. We are certain that this consumer protection association will help and assist the relevant government agencies.

Based on the experiences of consumer protection associations in the developed countries, they have been able to play the required role of making balance among the merchant, the consumer and the relevant government agencies. They were able to stand in the face of greedy traders and to protect the rights of consumers. These associations gained weight in the global markets; as they shielded consumers against the manipulators, greedy companies, and traders with impaired consciousness, until they became really heedful of these associations.

Consumer protection associations constitute the voice of the consumers and the eyes of the relevant official bodies that are concerned with consumers’ rights.

Upon pondering over the Saudi market, we find that there are bodies that protect, represent and demand the rights of the traders such as chambers of commerce and industry that play a significant role in serving and protecting the merchant. As for the larger segment of society, i.e. the consumers, they are still awaiting for the establishment of such associations so as to provide them the protection that the Saudi government have been looking for.

Consumer protection associations will guarantee the rights of the consumers; as they will edify and train consumers, demand their rights, spread awareness among them, support their causes and defend them before various government agencies. They are the link between the government and consumers. The importance of consumer protection associations has grown significantly after the Kingdom’s accession to the WTO.

In the absence of such consumer protection associations, some scattered individual efforts are exerted claiming the rights of the consumers. The best example in this regard is that the Riyadh Chamber of Commerce and Industry established ‘The Committee of Consumer Awareness’. The activities of the committee were suspended for some time according to the orders of the MoCI under the pretext that this was beyond the jurisdiction of the Riyadh Chamber of Commerce and Industry and that they are studying the establishment of a public committee for consumers. We wish that the Commission of Consumer Awareness would be re-established, not only in Riyadh, but in different regions of the Kingdom.

It is about time to have a consumer protection organisation that can be the voice, the eyes and the shield of the consumers to claim their rights in all purchases and consumption. Such consumer protection organisation will represent their point of view in a professional and balanced manner between them and the merchants. It will also reward the trader who respects the consumers and is keen to give them their due rights and single out the manipulators.

There is a proposal by the MoCI to set up a committee under the name of ‘The National Committee for Consumer Affairs’,14 which is a government body that we wish to see the light as soon as possible.


However, I think that this is not enough, as there must be an NGO for consumer protection that is not subject to the authority of any government bodies even if it operates under the umbrella of the laws of the Kingdom of Saudi Arabia, but it must be given the needed independence to play its due role.

MoCI has taken the initiative to develop the project (The National Committee for Consumer Affairs) and the proposal was submitted to the Custodian of the Two Holy Mosques, may Allah protect him, as per Ministry No. M/254 AD dated 16th Rabee’ I, 1421 AH.

5.2 Among the key objectives of this committee are the following

Uniting the efforts of the agencies, the committees and the bodies concerned with combating practices that are harmful to the health and safety of consumers in the Kingdom.

Developing policies, rules and joint programmes to serve the consumers and protect their interests.

Setting the overall plan of the programmes aimed at educating and protecting the consumer, monitoring these programmes’ implementation and evaluating them.

Supporting and enhancing programmes to protect and educate consumers through active contribution by the relevant sectors.

Riyadh newspaper published on 24th Thul Hijaah, 1423 AH that the Shura Council called for the establishment of a national body for consumer affairs and that this body had not been established yet. Finally, by the end of Thul Hijaah1426 AH the Shura Council renewed the demand for the establishment of a body for consumer protection, but this time the call was for a governmental and not independent body.

A resolution was issued by the Council of Ministers in its meeting on 17th Jumada II, 1428 AH (2 July 2007) demanding the establishment of a Consumer Affairs agency affiliated with the MoCI. This will create a strong impetus for organising the government efforts for protecting consumers against harmful behaviours to his/her health; either due to the use of goods or consumption of food products and consumer goods, and shield him against commercial fraud and violation of the due specifications and standards adopted locally and internationally. It will also raise the awareness among consumers in the Saudi market.

The MoCI is mainly concerned with consumer protection. There are two departments in the ministry itself that are relevant to consumer affairs and consumer protection. These departments are the Anti-Commercial Fraud Department and General Department of Supervision.

These two departments implemented a number of regulations issued to protect the rights of the consumers, including: Trademark Law, Precious Metal Law, Precious Stones Law, Standards of Weights and Measures Act, Commercial Agencies Law (stipulating that the commercial agent shall provide adequate spare parts, maintenance centres and warranties), Law of Commercial Data (i.e. written on the product or commodity).

The MoCI has a number of communication channels to receive consumers’ complaints: there is a toll-free telephone hotline to receive complaints: (800)1241616, Telephone: 014035555, Fax: 014093047 and website: http://www.commerce.gov.sa.

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The Ministry of Water and Electricity is responsible for supervising water factories, and monitoring the data written on the water, given that monitoring the specifications and standards of water bottles is the responsibility of Saudi Standards, Metrology and Quality Organisation (SASO). The Ministry of Health has a Health Professional Licensing Administration, which is concerned with the safety of medicines and addressing medical violations. Consumers feel that there is a conflict of roles between the Ministry of Municipal and Rural Affairs and the MoCI. For instance, the Ministry of Municipal and Rural Affairs is concerned with monitoring perishable good such as meat, poultry, fish, eggs, bread, milk, dairy and cooked food in markets and restaurants. The MoCI is responsible for monitoring the long-term food goods. This makes the consumer confused, to whom should he/she complain, to the Ministry of Municipal and Rural Affairs or the MoCI?

The other question is to which entity should the consumer complain? What is his/her authority in demanding his/her due rights in the Saudi market?

The Saudi consumer feels that he/she does not know his/her rights, and if he/ she does, there is no one to ensure them for him. Agents or distributors do have no competitors in the true sense, and some of them are even greedy. They exploit the consumer significantly. We rarely hear about compensation for wronged consumers, unless the case was brought to the court, which is a very long way.

An example of that is a consumer in the Saudi market who found a difference between the weight of a chicken that is written on the label and its actual weight, about 200 g. He/she contacted the MoCI but he/she did not get his/her rights? He/she resorted to the media. What are the measures that should be done by the MoCI to do justice to the wronged consumers and punish the poultry company and expose them? Honestly, the Saudi media in the recent years has played an important role in following up the violations of the consumers’ rights in the Saudi market; however, such a role remains limited in spite of its importance.

There are many goods in the Saudi market that lack the most basic means of safety precautions. How many times have we heard about a malfunction in children’s amusement park that claimed the lives of innocent children, who had come to the park for having fun and ended up in hospital or grave?

How many times have we heard of corrupt or counterfeit goods, whether medical or consumer goods, and expired tires that caused horrible accidents and disabilities?

The media shed light on livestock deaths that continued to mount as many camels died, showing symptoms of consuming toxic substances that was mixed with the fodder?

Who is responsible for that? How can a counterfeit good enter our markets and be sold in the shops before my very eyes all government agencies?

The two Riyal shops abound with electrical goods, very dangerous electrical connectors, and even worse, chemical products such as soap, shampoo, cosmetics and skin care products that are of poor quality, counterfeit, or detrimental to human health.

There are a lot of counterfeit perfumes that are sold at traffic lights, mosques and provinces. The gravity of these perfumes’ adverse health does not lie merely in being counterfeit, but also extends to damage to the skin, causing cancer; may Allah safeguard us.

How many fake discounts and sales are advertised everywhere, underestimating the minds of consumers? How many prizes are announced while the influence of nepotism on the distribution of these prizes cannot be denied? The emotions and knowledge of the weak consumer are being manipulated, making rosy promises just to devour his/her


money. How many real estate investments are advertised in all public and private TV channels, attracting millions of ordinary consumers who dream of changing their financial situation for the better, which is a legitimate right? Eventually, such investments and projects become mere ink on paper. The weak consumer realises the falsity of such campaigns and real estate investments. Where is consumer protection for such weak consumers?

One visit to the spice stores enables us to realise how fake weed, herbal buds and counterfeit products are sold before the very eyes of all people. The Saudi market suffers from great losses as a result of counterfeit and fake goods. The conservative statistics indicated that during 2004 AD the commercial fraud and counterfeiting losses amounted to 4 billion Riyals.

The Saudi market has poor-quality electrical connectors; who allowed them into the Saudi markets? What are the measures that were taken to protect consumers from such harms?

A question to the Civil Defence: How many fires were caused by these bad electrical connectors?

It is deduced from the experiences of the developed and neighbouring countries that the consumer protection agencies, whether government organisations or NGOs, complement each other, while each has defined roles. Based on these experiences, we can form an idea about the functions of the Department of Consumer Protection that is affiliated with the government bodies, including:

Providing government protection for consumers.

Spreading consumption awareness in the local market and the consumer community.

Focusing on consumer protection issues.

Continuous monitoring of the needed changes in the consumer protection laws, ensuring providing an adequate level of protection in accordance with the conditions and standards.

Receiving complaints from consumers, following up the complaints and addressing them.

Monitoring market and preparing the necessary reports.

The consumer protection associations receive consumer complaints through official channels: letters, telephone and email.

6 For the Saudi consumer

6.1 Tips for the consumer market in Saudi Arabia

1 Buy from known companies, especially high-priced goods.

2 Be sure to request purchase invoices, know the name of the seller, and protect your rights.

3 In case of doubt in the attitude of the seller or his/her treatment, stop buying and dealing with him.

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4 If the prices are raised, boycott such products and look for alternative goods. Boycott has a great impact in redressing the greed of some traders

5 Plan your purchases. When you go shopping, try writing down the goods that you want to purchase and stick to this list.

6 Buy your needs before the occasions and special events, such as the month of Ramadan, holidays, marriage seasons and the onset of winter. The observer of the Saudi market will be amazed to see how people hasten to buy their needs upon the announcement of the month of Ramadan or Eid, despite their previous knowledge of its approach. Consumers tend to wait until the last minute, and this make them accept any price and sometimes lower quality.

7 Price increase does not necessarily mean a higher quality. The Saudi proverb reads, “Cheap goods are of poor quality”, but I doubt it.

8 Try to be a rational consumer, do not let the eye-catchy advertisements and bright, yet false, promises tempt you.

9 Do not buy from one store, but always keep your options open.

10 Demand your right if you get subjected to any kind of commercial fraud.

11 Educate yourself before buying and the internet has become available to all people. Before buying, try to collect information on the product to be purchased; sellers respect the informed buyer who knows his/her due rights.

12 Compare between goods and services before purchase.

13 Boycott the goods that are proven to be detrimental for health, as well as the merchant who is proven to commit commercial fraud or raise the prices.

14 Set-up a blacklist of merchants who are proven to violate consumer rights.

Volunteers can help the competent authorities to detect any manipulation of prices. Toll-free numbers should be devoted for these volunteers (to report their complaints), and these numbers should be hanged in all stores and mall in a clear place.

This long list underlined the diverse aspects of consumer rights; however, it is useful to provide a more detailed overview about these rights in legal terms, highlight their applications and their references to us.

The word ‘consumer’ refers to any one of us who buys and uses various commodities for personal, family or household consumption and for non-business purposes. The observer of consumer behaviour in the Saudi market notices the weakness of the purchasing consciousness as well as consumption consciousness from one hand, and the inability to detect commercial fraud and deception in the market from the other hand. Another feature that can be seen in the Saudi market is the absence of the due consumer protection. The consumer is always the weaker party in the purchasing relationship. He/she often struggles with fraud, deception, high prices and failure to protect his/her rights. This necessitates protecting and safeguarding consumers’ rights and working on educating them, edifying them on their rights and duties, and providing legal protection in case they needed it.


Therefore, there are many claims to establish consumer protection associations as is the case in the developed countries. Consumer protection associations are ‘non-governmental associations’ that are responsible for monitoring the performance of government agencies that serve the consumer interest, whether in the field of health, trade or aviation.

6.2 Electronic protection for consumers

Owing to the Saudi consumer’s belief that the protection given to him by the government is limited and does not meet his/her expectations, and due to the absence of a civil association demanding his/her rights and edify him on his/her duties as is the case of the consumers in the markets of the developed countries, some consumers, who suffered from commercial fraud, sought to broadcast their concerns and problems across the internet in order to unit their efforts, get their voices heard by the officials, communicate with other consumers and edify them on their rights and warn them against such problems, exercise pressure on the greedy traders and change their negative behaviour towards the consumer.

Statistics show that 10% of the Saudi population uses the internet, and this is a good indicator of the level of awareness enjoyed by the Saudi community. This is positively reflected on the buying style and the consumer’s gathering information on the products to be purchased. These characteristics distinguish the conscious consumers.

Based on a personal experience and the observation of the consumer behaviour in Saudi Arabia, one notices that consumers have become aware of the need to claim their due rights, gather information and specifications of the goods to be bought, ask friends and acquaintances, use the internet to search for goods and services and the search for information before buying, and compare the prices before making the purchase decision. All this led to the growing role of internet in changing the consumer’s behaviour. We expect such a role to develop further in consumer protection field.

In the summer of 2007 and because of high prices in the Saudi market, many websites were created in order to unify efforts, edify consumers on their due rights, warn them against greedy traders, and offer them tips and guidance on demanding their due rights.

One of these websites, which became famous and popular among consumers, is a website created by some young people interested in the rights of the consumer, under the name of ‘Boycott’ (see http://www.mqataa.com/), i.e. boycott greedy traders.

The objectives of this website are the following:

1 Putting an end to the excessive rise in prices.

2 Raising consumer awareness on products whose prices have recently risen without a good reason.

3 Protecting consumers from the greedy traders who seek devouring our money.

4 Finding alternatives to other products in order to maintain the prices and subsidise them.

5 Getting our voice heard To Whom It May Concern.

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Another group who are interested in consumer protection created ‘Consumer’ website (see http://www.al-mostahlik.com/vb), which is concerned with consumer affairs in the Kingdom of Saudi Arabia and the Arab world.

The website is intended to be a platform and voice for the consumers to share and exchange good and bad experiences that they gone through during shopping.

The website contains Forums for the consumers to be a reference for them before making the purchase decision.

There are a lot of other forums that have sections devoted to consumer protection, and there are forums dedicated to expose the manipulation of traders or individuals, such as the Jeddah Derwaza Forum (see http://www.drwaza.com/vb). There is another forum for consumer protection (see http://www.al-mostahlik.com/vb), which is not devoted for publishing scandals, but to enlighten and educate consumers in order to avoid such practices.

The electronic consumer protection via the internet is vital, and the competent government agencies should encourage it. However, these websites alone will not be able to monitor the traders and the market duly, no matter how great efforts they exert.

I would like to add my voice to the calls for developing legal and legitimate protection for these websites; as they may be abused and exploited. The solution, from my point of view, lies in the speedy establishment of an assembly concerned with protecting the consumers, whether a government organisation or an NGO.

6.3 Examples from the Saudi market

There are examples from the Saudi market that show the importance of the consumer protection association, including:

1 First: In the summer of 1428 AH, 2007 AD, the Saudi press covered the camel deaths; about 1039 heads of camels died because of ‘toxic fodder’ and more than 2000 camels were infected within three days in one city, i.e. the Wadi Al Dawasir! Then, the outbreak reached other cities. The question was: who is responsible for that disaster? Is it the Ministry of Health or the MoCI or who? The question that many consumers in the Saudi market raise was that the Saudi market abounds with camel meat that is served in restaurant to customers; Is this meat safe for human consumption? Customers compare what happened in the Saudi market with the mad cow disease in Europe and the measures that were taken there to protect the consumers.

2 Second: A Saudi citizen accidentally discovered the manipulation in the weights of some products sold in the market at fixed prices according to their weights. He/she discovered that the two chickens he/she had bought weighed less than the weights written on the label of this large company. Who should claim the right of this consumer, protect his/her rights and to deter such companies and expose their unfair practices?

3 Third: What do you know about the content of the products that you consume day and night? How many cases of poisoning have we read about in our newspapers, or happened to a number of our relatives?

4 Fourth: How many patients died due to medical errors and the doctor is still practising medicine, even if he/she was banned from travelling?


5 Fifth: How many people have suffered from permanent disability or died as a result of buying fake spare parts for their cars?

6 Sixth: How many times have we been banned from travelling despite our confirmed reservations?

7 Seventh: How many times have we paid a high price for a particular commodity and later on discovered that it is sold for a lower price at a nearby store?

8 Eighth: How many of us have bought a product that is supposedly covered by a warranty and when it broke down, we realised that this damage was not covered by the warranty under the pretext of abuse?

9 Ninth: How many times have we found these words written clearly on a large plate in the stores and in the shop bills (The sold goods are not refundable or replaced)?

10 Tenth: How many times have we heard about the recovery of spare parts in the car that were proved ill-manufactured by the manufacturer or the consumer products and the like, yet they were not withdrawn from our markets in Saudi Arabia?

11 Eleventh: Can you count two Riyal Shops in the Saudi market that changed its name and did not change its activity?

12 Twelfth: How many times have we read about the risk of certain medical or consumer products while finding them in abundance in the Saudi market?

13 Thirteenth: Riyadh Municipality withdrew samples of carcinogenic pistachio in the summer of 1428 AH, 2007 AD, which is a commendable effort entails praising, but what is next?

14 Fourteenth: Anyone can buy any type of medication from the pharmacy without any prescription by a specialist doctor.

15 Fifteenth: Some companies resort to the over-sized packaging to simply deceive the buyer into believing that a given product is larger or better than it actually may be, while it is less than desired.

16 Sixteenth: How many times have we signed contracts written by the seller without reading them, and if we read and objected to them, no one listen to our objections, as is the case in car rental companies?

17 Seventeenth: In the developed countries’ markets a lot of products are withdrawn after the discovery of manufacturing errors or harmful material to health or the environment; will this happen in the Saudi market?

18 Eighteenth: The Saudi market abounds by toys imported from China in two Riyal shops that were proven to be harmful to the health of children, but they are sold every day and are quite popular among parents? Where is the role of regulatory bodies in protecting our children?

19 Nineteenth: When one goes to the grocery store, he/she is given plastic bags to carry his/her goods. Such plastic bags are detrimental to the health and the environment. On the contrary, in the markets of the developed world, we find rationing in giving such bags, and the consumer pays for them. When will we see this in our markets Saudi Arabia?

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20 Twenty: How many cases of poisoning are treated in our Saudi hospitals every summer because of Shawarma? Is not there supervision and monitoring over our food? Is the Saudi consumer’s awareness is sufficient to avoid contaminated food?

21 Twenty-first: The number of toys that had been pulled off the US markets amounted to 15.8 million toys that were made in China. The question is: How many children’s toys were pulled off the Saudi market?

22 Twenty-second: Mattel, the largest toy manufacturer, pulled 20 million China-made toys off the market in August 2007 because of the dangers of the lead paint and the small and strong magnets that can cause severe damage if swallowed. The question is: What about the Saudi market?

23 Twenty-third: Our markets abounds with energy drinks, despite their ill effects, and the Ministry of Health does not consider them as drugs, and the MoCI does not consider them as food, while the consumer is confused between the two ministries.

24 Twenty-fourth: Do you remember the last time a seller smiled at you?

25 Twenty-fifth: Do you remember a good purchasing experience in the Saudi market?

6.4 Protecting children consumers in Saudi Arabia

Children usually are not conscious enough to distinguish between the eye-catchy advertisement that manipulate their feelings and the facts about the displayed goods and services. They are not fully aware of consumer protection and they are always in a conflict between satisfying their desires to own goods and services and protecting themselves from unfair practices by the merchants.

Most of population in the Kingdom of Saudi Arabia is youth under the age of 18 years, amounting to 45% of the population. Many Arab countries have ratified the United Nations Convention on the Rights of the Child (CRC) issued in 1990. The Convention generally defines a child as any human being under the age of 18. Article 2415 of the Convention stipulates that States should strive to provide the child with the highest attainable standard of health. Therefore, consumer protection associations claimed the development of new ways to help spreading the culture of children protection, whether with regard to what they eat, drink or wear, and even with regard to their toys, means of entrainment and education, in addition to all rights of the consumers guaranteed by regulations and laws. There are good successful experiences in protecting vulnerable children consumers in the Arab world. For example, there is the experience of Media Association for Development and Consumer Protection in Egypt and the experience of the Ministry of Education in Yemen, which seeks to protect children consumer through two ways:

1 In cooperation with the Ministry of Education through school canteens offer food and beverages to students during specific times in school days. Such foods and beverages should have health and safety factors. All processed food and drink sold in school canteens must meet a minimum nutrient standard, ensuring that the food and drink sold in school canteens are healthy and nutritious at a reasonable price. This is an early experience in life the child through which he/she learns how to align, satisfy his/her needs and specify his/her choice from multiple choices in the food menu in the school cafeteria. He/she gets the chance to mingle with buyers at his/her age and


he/she goes through the purchase experience without the help of his/her parents. He/she depends on himself at an early stage of life as he/she mixes with other buyers and deals with vendors in the school cafeteria.

The cooperation with the Ministry of Education extends to add school subjects for raising the children awareness on their rights and obligations as consumers, edifying them on the health benefits and economic return they gain as a result of following these practices.

There is a family life education curriculum in the Kingdom of Saudi Arabia, as a part of the ongoing development of curriculum in the Kingdom. One of its objectives is edifying children in public schools, raising their awareness on the consumer purchasing and educating them in their purchasing affairs.

2 That is pursued by consumer protection associations, namely having close contact with the Saudi Standards, Metrology and Quality Organisation with regard to setting certain specifications and standards for children products: clothes, toys, food and entertainment, especially toys, computers, cell phones, televisions, in front of which our children spend most of their time. Such specifications and standards should be known to children and their parents so as to pay attention and be keen to ask about then while buying.

The media along with the family and the school plays an important role in raising awareness, promoting Protection of children-consumers, and warning against counterfeit and defective products, bad meals and soft drinks that are harmful to health. The eating habits of our children have significantly changed thanks to the foreign servants in our homes. These foreign servants have brought new habits and traditions into our communities. The eating culture of our children was affected by the food quality served by the servants in our homes, for example, the domie that invaded our homes because of these servants.

Doctors have confirmed that osteoporosis has spread among some of our children as a result of the bad dietary habits. Misleading advertisements permeated our media day and night. There are advertising messages are directed to children without taking into account the mentality of the child and his/her way of thinking in different parts of the world.

6.5 Publications specialised in consumer protection

The Saudi market lacks magazines specialising in consumer protection similar to what is found in the West. There is a specialised Journal issued by the Saudi Standards, Metrology and Quality Organisation under the name of ‘The Consumer and Quality’. I have read its fourth edition dated Rabee’ II 1428 AH, 5th May 2007 AD. It was educational and informative rather than instructive and prescriptive. However, this is a commendable effort by the Saudi Standards, Metrology and Quality Organisation and I wish to see more and more publications in this regard.

There is a website concerned with consumer protection in the Arab world, which is considered the first Arabic website devoted to consumer affairs in the Arab world (see http://www.al-mostahlik.com/vb). It is a forum specialising in consumer affairs and issues.

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7 Conclusion

Consumer protection is a service provided by the government and civil society institutions having jurisdiction to protect consumers from commercial fraud and deception and for the purpose of providing high-quality services for the consumers.

They aim at enhancing the consumer’s awareness, purchasing culture and ability to distinguish between good and bad goods available on the market. It also aims at protecting consumers from the greedy traders who seek fast profits through the shortest way, without bearing the social responsibilities or considering the interests of the consumers along with their interests.

The marketing awareness of the consumer protects him from deceptive practices of some companies, whether in terms of goods, the ways of pricing their products or some of the deceptive promotions.

Such consumer protection associations make the consumer in the Saudi market confident that he/she will not do be harmed or wronged and if he/she was done injustice, he/she is confident that his/her right will be claimed through these associations of which merchants are heedful.

Thanks to such associations the marketing culture can spread and some of the inherent concepts in the hearts of the consumers in the Saudi market can change. For example, the inherent conviction of Saudi consumers to look for cheap goods which has no warranty convinced them that the warranty increases the price of the product, and they do not benefit from this warranty in effect. Another example is that some consumers do not to make sure to read the production and expiration date of goods and finding information on the commodity to be bought.

Therefore, I hope that:

The Ministry of Municipal and Rural Affairs, the Ministry of Agriculture, the MoCI and the Ministry of Health, the Saudi Food and Drug Authority (SFDA), and the Customs Department, each according to their competence, would enhance their role in consumer protection field effectively through the development of standards and specifications of goods and products offered to the consumers. These bodies should control and supervise and verify the application of those standards and specifications.

Establishment of a special department or administration in the MoCI, which matches the level of Ministry Consumer Affairs Agency that combines the activities undertaken by relevant customer service departments in this ministry.

The establishment of an NGO called the (Consumer Protection Association) concerned with consumer affairs, catering for his/her interests and defending them, adopting his/ her causes in public and private entities, supporting the efforts of the government organisations, spreading consumer awareness and protecting consumers from all types of fraud, counterfeiting and fraud deception in all goods and services, including: food and pharmaceutical goods, imported and locally manufactured. This association should have a general assembly from the citizens whose interests are concentrated in the field of Consumer Affairs.


The question is: Will this consumer protection association shoulder its role and responsibility as due? Will it confront the greedy traders so that they would be mindful of such associations? Or will it be mere ink on paper and we will hear of what we used to hear of associating the dollar to the high price in the country of origin?

It is important for these associations to have authority enabling them to sue companies or government agencies when needed.

Finally, I would like to underline that there should be no immunity given either to a government, a company or an individual; protecting the consumer is a due right and compensation in case of default is required. All should shoulder their duties and bear the consequences of their mistakes.

Notes

1 One of the principal reasons for the need for market surveillance and proper monitoring is to ensure the following:

To ensure that business conducted on the exchange is performed in an orderly manner so as to afford proper protection to market users and investors.

The provision of arrangements and resources for the effective monitoring and enforcement of compliance with the exchange rules.

The provision of effective arrangements for the investigation into and resolution of possible complaints in respect of exchange business.

The promotion and maintenance of high standards of integrity and fair dealing in the transaction of exchange business.

2 Ralph Nader (born on 27 February 1934) is an US political activist, as well as an author, lecturer and attorney. Areas of particular concern to Nader include: consumer protection, humanitarianism, environmentalism and democratic government. Nader came to prominence in 1965 with the publication of his book Unsafe at Any Speed, a critique of the safety record of US automobile manufacturers in general, and most famously the Chevrolet Corvair. In 1999, an NYU panel of journalists ranked Unsafe at Any Speed 38th among the top 100 pieces of journalism of the 20th century. Nader is a six-time candidate for President of the USA, having run as a write-in candidate in the 1992 New Hampshire Democratic primary, as the Green Party nominee in 1996 and 2000 and as an independent candidate in 2004 and 2008. Some people claim that Nader acted as a spoiler in the 2000 US presidential election, while others, including Nader, dispute this claim.

3 This right states that businesses should always provide consumers with enough appropriate information to make intelligent and informed product choices. Product information provided by a business should always be complete and truthful. Aiming to achieve protection against misleading information in the areas of financing, advertising, labelling and packaging, the right to be informed is protected by several pieces of legislation passed between 1960 and 1980.

4 The right to free choice among product offerings states that consumers should have a variety of options provided by different companies from which to choose. The federal government has taken many steps to ensure the availability of a healthy environment open to competition through legislation including limits on concept ownership through Patent Law, prevention of monopolistic business practices through Anti-Trust Legislation, and the outlaw of price cutting and gouging.

5 This right asserts the ability of consumers to voice complaints and concerns about a product in order to have the issue handled efficiently and responsively.

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6 Competition law, known in the USA as antitrust law, is law that promotes or maintains market competition by regulating anti-competitive conduct by companies. The history of competition law reaches back to the Roman Empire. The business practices of market traders, guilds and governments have always been subject to scrutiny, and sometimes severe sanctions. Since the 20th century, competition law has become global. The two largest and most influential systems of competition regulation are US antitrust law and European Union competition law. National and regional competition authorities across the world have formed international support and enforcement networks.

7 To acquire knowledge and skills needed to make informed, confident choices about goods and services, while being aware of basic consumer rights and responsibilities and how to act on them.

8 Consumer boycott means a boycott adopted by consumers of both product and services to express their displeasure with the seller, manufacturer or provider. Sometimes, customers may refuse to purchase a particular product in order to show their dissatisfaction to the excessive price or offensive action of a particular manufacturer or producer. It mainly focuses on the long-term change in the buying habits by bringing reform in commodity markets or by inducing government commitment to moral purchasing.

9 It refers to an individual who buys products or services for personal use and not for manufacture or resale. A consumer is an ultimate user, who buys goods and services in exchange with money for personal use.

10 Consumer behaviour is the study of when, why, how and where people do or do not buy a product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision-making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people’s wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups and society in general.

11 In economics a rational consumer is defined as the people who act in a rational way and make rational choices, namely spending their money wisely.

12 Gharar is an Islamic finance term describing a risky or hazardous sale, where details concerning the sale item are unknown or uncertain. Gharar is generally prohibited under Islam, which explicitly forbids trades that are considered to have excessive risk due to uncertainty. There are strict rules in Islamic finance against transactions that are highly uncertain or may cause any injustice or deceit against any of the parties. In finance, Gharar is observed within derivative transactions, such as forwards, futures and options, in short selling and in speculation. In Islamic finance, most derivative contracts are forbidden and considered invalid because of the uncertainty involved in the future delivery of the underlying asset.

13 The Consultative Assembly of Saudi Arabia also known as Majlis as-Shura or Shura Council is the formal advisory body of Saudi Arabia, which is an absolute monarchy. It cannot pass or enforce laws, a power reserved for the King. The Consultative Assembly has limited powers in government, including the power to propose laws to the King. It has 150 members, all of whom are appointed by the King. The Consultative Assembly is headed by a Speaker. The Consultative Assembly is based in the Al-Yamamah Palace, Riyadh. The modernisation [when?] of the Consultative Assembly of Saudi Arabia or Majlis Ash-Shura was considered by the Saudi government to make a significant improvement in the council’s methods (Shura).

14 Minister of Commerce, Ossama Ibn Jaffar Fakih, announced that his ministry proposes to set up a national committee for consumer affairs, with the primary aim of protecting consumers from detrimental practices. This move, he said, is in line with the accelerating growth and diversification of commercial activities in the Kingdom. Such a committee would have branches throughout the country to enlighten the citizens on their rights and provide guidance for them. It would also support government efforts to combat forgery and fraudulent enterprises, and play a role like that of the chambers of commerce in protecting the interests of the business community.


15 Article 24: States Parties recognise the right of the child to the enjoyment of the highest attainable standard of health and to facilities for the treatment of illness and rehabilitation of health. States Parties shall strive to ensure that no child is deprived of his/her or her right of access to such healthcare services.

16 The US Consumer Product Safety Commission is charged with protecting the public from unreasonable risks of injury or death from thousands of types of consumer products under the agency’s jurisdiction. The CPSC is committed to protecting consumers and families from products that pose a fire, electrical, chemical or mechanical hazard or can injure children. The CPSC’s work to ensure the safety of consumer products such as toys, cribs, power tools, cigarette lighters and household chemicals – contributed significantly to the 30% decline in the rate of deaths and injuries associated with consumer products over the past 30 years.

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Appendix A Useful websites for consumers

I found a list of useful links in English websites on ‘Arab consumers’ and I wanted to share with the reader and the consumer in the Saudi market; perhaps they would benefit him during his/her dealings with traders, and I hope to see such websites in Arabic to avail all, God willing:

1 www.consumerreview.com

More than 150 thousand reviews of more than 25,000 products. It includes a range of specialised sites (more than 17 websites) about specific items related to the segments of consumers with the same interests (Web Communities).

2 www.productopia.com

This website provides consumers assistance in choosing the product, reviewing and buying goods and products in more than 450 kinds.

3 www.epinions.com

It has reviews of goods and products. This website is distinguished with its ‘Web of Trust’, i.e. a system that allows the classification of reviews, and estimating their usefulness, and also enables registered members to gain money for their reviews that won the trust of others through the Web of Trust.

4 www.deja.com

This website helps the consumer to choose carefully what he/she wants to buy (precision buying) through providing a variety of information such as reviews of products and services, specifications for different products, comparisons between prices, forums and many more. It is a source of much useful information for the consumer who is keentomake an intelligent buying decision.

5 www.bizrate.com

This website collects tens of thousands of surveys from real customers after finalising their transactions from businesses on the internet in order to get their impressions of these businesses. It also provides detailed information on those facilities.

6 www.pricegrabber.com

Reviews on businesses, specifications of goods and products, comparing prices and shipping expenses.

7 www.pueblo.gsa.gov

This is a service provided by the Federal Consumer Information Centre. It abounds with useful information for consumers resident in the USA and contains the organisations and bodies (governmental and NGO) that are concerned with consumer protection.

8 www.productreviewnet.com

This unique website classifies a lot of good websites that offer an evaluations and reviews of the goods and services to the consumers and provides a summary of these reviews.

9 www.mysimon.com

This website helps the consumers compare the prices and identify the goods and their specifications and shipping requirements and other useful information.


Appendix B Foreign organisations and entities concerned with consumer protection

These are some of the organisations and foreign agencies concerned with consumers

1 www.fsis.usda.gov

Service supervision and safety of food, one of the agencies and the US Department of Agriculture concerned with public health.

2 www.consumersinternational.org

Consumers International is a global complex world of associations and consumer protection organisations, with more than 260 entities in 120 countries.

3 www.citizens.org

Citizens for Health, an organisation meant to protect consumers and facilitate the arrival of information on the safety of natural medicine products.

4 www.consumerworld.org

A public service and a guide to more than 2999 useful references for consumers.

5 www.geocities.com/WallStreet/Floor/index.htm

The Canadian Council for consumers; it addresses the basic consumer rights cases and their responsibilities in the Canadian market.

6 www.cpsc.gov

US Consumer Product Safety Commission16 is one of the federal agencies concerned with family through reducing accidents caused by consumer products in the market and reporting.

7 www.nhtsa.dot.gov

The US National Highway Traffic Safety Administration (NHTSA).

8 www.whatsthebest.net

This website aims at helping those who are buying new products to save their time instead of wandering about shops and malls asking for the product to be purchased and compare the specifications.

9 http://www.cpsc.gov

A US website specialised in product safety, helping consumers to protect themselves from the dangers of goods and services.

10 http://www.consumer.gov

A website that includes comprehensive information on products in the US market. It divides the information according to the quality; whether consumer products, electronic, food or the like.

11 http://www.ftc.gov

The Federal Trade Commission that protects the consumer and seeks to establish competitive justice.

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12 http://www.consumerworld.org

A Consumer Information Centre contains more than 2000 website full of tips and advice site for consumers.

13 http://www.consumersinternational.org

The Global Voice for consumers has members from bodies and organisations seeking to protect the consumer all over the world.

dynamics of consumer protection across saudi arabia

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