Blab Business
Saudi Ministry of Commerce Blocks E-Store Over Delivery and Refund Violations
The Saudi Ministry of Commerce announced today that it has suspended an online retailer that sells household electrical and electronic appliances, citing a series of breaches of the Kingdom’s E‑Commerce Law.
The decision, made after an internal review of the e‑store’s operations, requires the platform to settle all outstanding orders, restore consumer rights, and bring its delivery commitments in line with legal standards before it can resume sales.
According to the ministry’s statement, the retailer failed to deliver products within the timeframes promised to customers and did not respond to requests for contract cancellations or refunds. The platform also neglected to notify buyers of delays that could affect delivery, and issued invoices that omitted mandatory information required by the law.
The E‑Commerce Law, issued under Royal Decree No. M/126 on 10 July 2019, sets out the rules for online commercial activity in Saudi Arabia. It requires e‑commerce operators to obtain a license from the Ministry of Investment (MISA), provide clear delivery schedules, honor cancellation and refund rights, and issue invoices that contain all legally mandated details. The law also empowers the Ministry of Commerce to monitor compliance, impose penalties, and, where necessary, suspend or shut down non‑compliant platforms.
In its statement, the ministry warned that penalties for violations could include fines of up to 1 million Saudi riyals, blocking or shutting down the e‑store, and banning the business from conducting any commercial activities in the Kingdom. The ministry emphasized that it will continue to monitor e‑platforms and that legal action will be taken against violators.
Saudi Arabia’s e‑commerce market has been expanding rapidly. Industry reports project that the number of internet users engaged in e‑commerce will reach 34.5 million by the end of 2025, and that the sector’s value could approach US$25 billion by 2026. The growth is part of the Vision 2030 initiative, which seeks to diversify the economy and promote digitalization.
The block of the e‑store underscores the ministry’s commitment to protecting consumers amid the sector’s rapid expansion. By enforcing delivery timelines, refund rights, and proper invoicing, the ministry aims to maintain trust in online retail and prevent the kind of consumer harm that can arise when platforms fail to meet contractual obligations.
The ministry’s statement did not disclose the number of orders affected or the identities of the consumers who filed complaints. It also did not specify a timeline for when the e‑store might resume operations. The retailer is required to resolve all pending orders and restore consumer rights before the block can be lifted.
The action serves as a warning to other e‑commerce operators in Saudi Arabia that compliance with the E‑Commerce Law is mandatory. It also signals that the ministry will continue to enforce the law as the market grows, ensuring that consumer protection remains a priority in the Kingdom’s digital economy.
At present, the e‑store’s future is uncertain. The ministry has not announced whether it will pursue a fine or other sanctions beyond the suspension. The case remains a reminder that online retailers must adhere strictly to Saudi Arabia’s regulatory framework to operate successfully in the market.
The Ministry of Commerce’s enforcement action reflects its broader mandate to oversee commercial activity and safeguard consumer interests. As the Kingdom’s e‑commerce sector continues to expand, the ministry’s vigilance is likely to shape the industry’s standards and practices for the foreseeable future.
The decision, made after an internal review of the e‑store’s operations, requires the platform to settle all outstanding orders, restore consumer rights, and bring its delivery commitments in line with legal standards before it can resume sales.
According to the ministry’s statement, the retailer failed to deliver products within the timeframes promised to customers and did not respond to requests for contract cancellations or refunds. The platform also neglected to notify buyers of delays that could affect delivery, and issued invoices that omitted mandatory information required by the law.
The E‑Commerce Law, issued under Royal Decree No. M/126 on 10 July 2019, sets out the rules for online commercial activity in Saudi Arabia. It requires e‑commerce operators to obtain a license from the Ministry of Investment (MISA), provide clear delivery schedules, honor cancellation and refund rights, and issue invoices that contain all legally mandated details. The law also empowers the Ministry of Commerce to monitor compliance, impose penalties, and, where necessary, suspend or shut down non‑compliant platforms.
In its statement, the ministry warned that penalties for violations could include fines of up to 1 million Saudi riyals, blocking or shutting down the e‑store, and banning the business from conducting any commercial activities in the Kingdom. The ministry emphasized that it will continue to monitor e‑platforms and that legal action will be taken against violators.
Saudi Arabia’s e‑commerce market has been expanding rapidly. Industry reports project that the number of internet users engaged in e‑commerce will reach 34.5 million by the end of 2025, and that the sector’s value could approach US$25 billion by 2026. The growth is part of the Vision 2030 initiative, which seeks to diversify the economy and promote digitalization.
The block of the e‑store underscores the ministry’s commitment to protecting consumers amid the sector’s rapid expansion. By enforcing delivery timelines, refund rights, and proper invoicing, the ministry aims to maintain trust in online retail and prevent the kind of consumer harm that can arise when platforms fail to meet contractual obligations.
The ministry’s statement did not disclose the number of orders affected or the identities of the consumers who filed complaints. It also did not specify a timeline for when the e‑store might resume operations. The retailer is required to resolve all pending orders and restore consumer rights before the block can be lifted.
The action serves as a warning to other e‑commerce operators in Saudi Arabia that compliance with the E‑Commerce Law is mandatory. It also signals that the ministry will continue to enforce the law as the market grows, ensuring that consumer protection remains a priority in the Kingdom’s digital economy.
At present, the e‑store’s future is uncertain. The ministry has not announced whether it will pursue a fine or other sanctions beyond the suspension. The case remains a reminder that online retailers must adhere strictly to Saudi Arabia’s regulatory framework to operate successfully in the market.
The Ministry of Commerce’s enforcement action reflects its broader mandate to oversee commercial activity and safeguard consumer interests. As the Kingdom’s e‑commerce sector continues to expand, the ministry’s vigilance is likely to shape the industry’s standards and practices for the foreseeable future.
