In a significant legislative development, Saudi Arabia issued Cabinet Decision No. 93/1446 enacting two new laws: the Standards and Quality Law and the Product Safety Law. These laws define the obligations on manufacturers and importers, expand the authorities of the regulator, and establish a dedicated committee to enhance product recall coordination and consumer safety. The laws will come into effect on 16 November 2024.
Unlike other states of the Gulf Cooperation Council, Saudi Arabia has not enacted an overarching consumer protection law. While various consumer protection regulations are in place, mainly in the areas of banking and finance, a comprehensive law in respect of product safety issues and recall procedures has been lacking until now. The new legislation is a welcome development signaling a better approach to market safety and enhanced consumer protection in Saudi Arabia.
Objective and Scope
The Standards and Quality Law aims to establish and define a general framework for Standardisation and Quality (defined as the degree to which a set of characteristics meets requirements, expectations, or objectives) in the country.
The Product Safety Law applies to all products, including those traded through electronic means, except for products that fall under the jurisdiction of the Saudi Food and Drug Authority (SFDA), and aims to protect consumers by preventing the risks associated with products placed on the Saudi market.
New Obligations on Suppliers
The Product Safety Law imposes statutory obligations on the manufacturer, authorised representative, and importer of a product, who shall, inter alia:
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- Ensure that the product is safe or presumed to be safe;
- Ensure that the product complies with all applicable legal requirements;
- Adequately assess risk in the product in accordance with Risk Assessment Procedures, which are to be determined by future guidelines;
- Assess the product’s conformity with applicable technical regulations, and prepare a complete technical file containing all necessary documents to demonstrate that the product complies with the requirements specified in the technical regulations;
- Issue the Declaration of Conformity.
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Distributors, within the scope of their activity, shall:
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- Exercise due diligence to help ensure compliance with the legal requirements; and
- Refrain from offering products that they know or should reasonably know do not comply with the legal requirements.
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Manufacturers will be held liable for all defects in products they have placed on the Saudi market. For those manufacturers located outside the country, the importer or authorized representative shall assume all of the manufacturer’s responsibilities and duties.
The Executive Regulations (expected to be issued on 16 November 2024) will further specify the responsibilities and duties of the manufacturer, authorised representative, and importer in this regard.
Expanded Role of SASO and the new Product Safety and Monitoring Committee
The Saudi Standards, Metrology, and Quality Organization (referred to under the abbreviation of its previous name, “SASO”) was established in 1972 with the mandate to oversee national and import standards in Saudi Arabia. While SASO was already authorized to enforce product standards, the Standards and Quality Law formally establishes SASO as the sole authority concerning Standardisation and Quality activities, except for products and services under the jurisdiction of the SFDA. Additionally, under the new Product Safety Law, SASO will be empowered to appoint inspectors with the authority to oversee compliance and to conduct periodic inspections, including the right to enter supplier facilities, review documents to audit compliance with safety standards.
A newly established Product Safety and Monitoring Committee within SASO will have the role to review and issue standards and regulations, contribute to the development of product safety policies, and coordinate between government bodies and the private sector on product safety related issues.
Penalties for Non-Compliance
The Product Safety Law introduces stronger mechanisms for enforcement. Non-compliance could result in significant penalties, including warnings, fines of up to ten million Riyals or closure of the offending establishment for up to one year. Anyone who intentionally places an unsafe product on the market that is likely to harm the consumer could face imprisonment for up to ten years.
If you would like more information about this topic then please contact us.
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