New Consumer Protection Executive R
New Consumer Protection Executive Regulations
In the first week of April, the executive regulations for the Consumer Protection Law were issued (the “Regulations”).[1] The Regulations do not expand greatly on the new rights granted by the Law, and the new procedures stipulated are within the general outlines of both the Law and Egyptian legislative practice, imposing few new burdens on suppliers.
Background
On 13 September 2018, a new Consumer Protection Law No. 181 of 2018 was issued (the “Law”)[2] replacing a previous one dating back to 2006, which established the Consumer Protection Agency (“CPA”). CPA is the entity responsible for monitoring trade activities and the protection of consumer rights, including health and safety. The new Law addresses the more complex commercial issues presented by online commerce. It also lends some attention to real-estate clients, information that is advertised to consumers, provides more detailed retail return and instalment policies, and imposes harsher penalties on infringements on consumer rights as provided under the Law. In terms of scope, the Law addresses the suppliers of any commercial, industrial, or professional service or craft and the producers, manufacturers, importers, exporters, and retailers of any good. It also clearly removes from its scope all financial services, placing an end any confusion between the roles of the CPA and the Financial Regulatory Authority.The Executive Regulations of the Law
The Regulations add a few new definitions to those in the Law, defining “invoice” “warranty” “product lifetime” and “total price”. Warranties are for freedom from defect, fitness for purpose, and continued compliance with standard specifications throughout the warranty period. This slightly differs from the definition offered in the Law itself, which also includes a quality warranty. The Regulations also require that sellers of goods display the total price of each product, including all taxes and charges – but also extends this to services, mandating that the total price for each service be displayed where the service is sold, which may present implementation issues for suppliers of multiple or custom services. The Regulations also add four new aspects of a product that could be the subject of “deceptive conduct” – statements provided about consumer rights, the availability of a given product, advertising a competition or promotion without stating its number, and advertising a product where such advertising requires a license. All product sales continue to require a detailed invoice, but a less detailed invoice may be used for goods under EGP 10, provided the total invoice value does not exceed EGP 200. The process for issuing, and conditions for revoking, a competition permit were set out in the Law, with CPA being permitted to cancel a competition if it appears fraudulent or insincere.Return of Goods – Exceptions
Three new exceptions to the 14 day no-cause return policies were added – intimate garments and wedding dresses may not be returned unless in protective packaging, and jewellery not at all. For the 30-day for-cause return policy, consumers are entitled to their money back within one week of making the claim, and the money returned must be in the same form as payment was made. For durable goods, if a supplier does not fix any defect within a maximum period of a month, the consumer is entitled to a new one or the return of their payment.Disclosure and Reporting Requirements
A criticism of the 2006 law and regulations was that they gave suppliers seven days to report a defect that has come to their attention to CPA without setting a standard for either reportable defects or guidelines for proportional remedies, and the Regulations offer nothing in this regard other than to outline the process by which a dangerous good notification should be made to CPA and the public and that CPA’s permission would be required to resume production or importation of a dangerous good, with the onus placed on the supplier to prove.Remote Contracting
The Regulations exclude online plane ticket and accommodation bookings from the consumer protection requirements relating to e-commerce, as expected given the current commercial practices and logistical realities of these industries.Inspections and Seizures
The right of inspectors to enter commercial premises and take samples has been made subject to receiving personal and explicit consent to do so for a particular period and product from CPA directors, and sets out other conditions for their investigations, particularly the recording of each process and evidence.Consumer-friendly Certifications
The Regulations set out conditions – and a variety of prices graded according to size of business – for obtaining a “certificate of consumer-friendliness” from CPA.Conclusion
The new Regulations do not add much to the new requirements of the Law, and it seems likely that new decrees will be required to fully implement the new obligations of the Law. While both the Law and Regulations represent a great improvement to Egypt’s consumer protection regime, it remains to be seen how effective they will be given the great expansion of the responsibilities of CPA. [1] Prime Ministerial Decree No. 822/2019 enacting the Executive Regulations of the Consumer Protection Law No. 181/2018, Official Gazette, Issue No. 13 (bis) (a), 1 April 2018. [2] Law No. 181/2018 on Consumer Protection, Official Gazette, Issue No. 37 (cont.), 13 September 2018.
في الأسبوع الأول من أبريل، صدرت اللائحة التنفيذية لقانون حماية المستهلك الجديد ("اللائحة").[1] ولا تتوسع اللائحة إلى حد كبير في حقوق حماية المستهلك الجديدة التي يمنحها القانون، بل إن الإجراءات المنصوص عليها في اللائحة تقع في الإطار العام لكل من القانون والممارسات التشريعية المصرية مع عدم فرض الكثير من القيود الجديدة على الموردين.