Abu Dhabi: Consumers across the UAE may soon be eligible to withhold at least half of the price of goods until they are delivered on time and meet other contractual terms, a senior official said on Tuesday.

“A federal resolution may soon be issued to ensure at least 50 per cent of the price of goods be withheld by consumers until final delivery and acceptance of these goods,” Dr Hashim Al Nuaimi, Director of the Consumer Protection Department at the Ministry of Economy told Gulf News.

Dr Al Nuaimi said the move was prompted by a flurry of complaints reported to the department over businessmen’s failure to meet delivery terms.

“Many consumers complained businessmen failed to deliver goods on time and in many cases delivered faulty products,” he said.

Dr Al Nuaimi said the department was discussing price withholding levels with businessmen and consumers so that we reach a consensus about the withholding level, which should not be less than 50 per cent of the price of goods.

Existing laws generally requires consumers to pay the price of goods in advance, which causes many problems to consumers. “Concurrent payment and delivery of goods are better to ensure contractual terms are met and rights of consumers protected,” Dr Al Nuaimi said.


Dr Al Nuamim said withholding a percentage of the price will ensure businessmen honour their obligations abide by delivery and other contractual terms including the quality of goods.

The decision on price withholding until final delivery and acceptance of goods is in keeping with the Consumer Protection Law and the Cabinet resolution concerning rights and duties of consumers and suppliers.

The Percentage of the contract price required to be withheld until final delivery and acceptance of the goods and services will take into account evaluation of risk involved on the part of consumers and suppliers, Dr Al Nuaimi said.

Many consumers complained to the Consumer Protection Department that they ordered commodities but they didn’t receive it on time, or bought something that was completely unsatisfactory, and they couldn’t get the merchant to refund their money, according to the department.

The move, Dr Al Nuaimi said, will ensure consumers take delivery of goods which are of a particular standard, quality, value, grade, composition, style or model as agreed in the contract.

He advised suppliers not to accept payment for goods or services if they do not intend to supply the goods or services, know they cannot supply the goods or service or cannot supply the goods or services in a timely manner.

Full payment on delivery will help cut on the number of suppliers who break the law by delaying or failing y to supply goods or services agreed and paid for, Dr Al Nuaimi said.

source: Gulfnews