UAE E-commerce Law Basics: What Every Online Seller Must Know

Most online sellers in the UAE focus on products and marketing and only think about the law when something goes wrong. A few basic rules, though, apply to almost every online store and can save you from fines, chargebacks and angry customers. Here are the UAE e-commerce law basics every seller should know.

This is a plain-language overview, not legal advice. For anything specific to your business, consult a UAE-qualified lawyer.

Table of contents

1. The key laws
2. 1. You need a licence
3. 2. Arabic information
4. 3. Clear prices
5. 4. Invoices
6. 5. Warranties, defects and returns
7. 6. Customer data and privacy
8. 7. Advertising and influencers
9. Practical compliance checklist
10. Simple policies every store should publish
11. When to get professional advice
12. Frequently asked questions
13. Do I need Arabic on my UAE online store?
14. Can I refuse returns?
15. Does the E-commerce Law apply to Instagram sellers?
16. Want your store set up compliantly?

The key laws

• Federal Decree-Law No. 14 of 2023 on trading by modern technological means (often called the E-commerce Law), effective from September 2023.
• Federal Law No. 15 of 2020 on Consumer Protection, with Executive Regulations (Cabinet Decision No. 66 of 2023) effective from October 2023.
• Federal Decree-Law No. 45 of 2021 on personal data protection (for onshore UAE and free zones without their own data law). DIFC and ADGM have their own data protection rules.

1. You need a licence

Selling online, including through social media, requires a valid trade licence with the right activity. See my e-commerce licence guide.

2. Arabic information

Consumer information, advertisements and contracts must be in Arabic. You can use English or other languages as well, but in addition to Arabic, not instead of it. In practice, make sure key product information, terms and policies have Arabic versions.

3. Clear prices

• Show the price of each product or service clearly, in AED.
• If you’re VAT-registered, prices to consumers should include VAT.
• Promotions and discounts may require approval from the relevant authority before you advertise them.

4. Invoices

Give customers a dated invoice that includes the information the laws require. If you’re VAT-registered, it also needs your TRN and VAT details.

5. Warranties, defects and returns

• Provide warranties in line with the law and address defects or malfunctions.
• Offer after-sales service where relevant.
• Consumers have return and exchange rights for goods and services bought electronically, under the conditions set by the law.
• Contract terms that try to waive consumer rights or limit their compensation claims are void.

6. Customer data and privacy

• Protect the privacy and security of customer data.
• Don’t use customer data for marketing without the proper legal basis and consent.
• Publish a clear privacy policy.
• Only collect the data you actually need.

7. Advertising and influencers

Advertising must be truthful and not misleading. Paid promotions on social media may require permits under UAE media regulations, so check current rules before running influencer campaigns. See Instagram marketing for Dubai businesses.

Practical compliance checklist

1. Valid licence covering e-commerce
2. Prices clearly shown in AED (VAT-inclusive if registered)
3. Arabic versions of key information and policies
4. Terms and conditions, privacy policy, returns and delivery policies on your website
5. Proper invoices for every order
6. A clear warranty and complaints process
7. Secure handling of customer data

Frequently asked questions

Do I need Arabic on my UAE online store?

Consumer information, ads and contracts must be in Arabic, with other languages allowed in addition. Add Arabic versions of key content and policies.

Can I refuse returns?

Consumers have legal rights around defective goods and certain returns of online purchases. A “no returns” policy may not be enforceable in all cases.

Does the E-commerce Law apply to Instagram sellers?

Yes. It covers trading through modern technological means, including social media and messaging apps.

Want your store set up compliantly?

Official source: for the latest rules and fees, check the UAE Government portal – E-commerce.

I build UAE online stores with the right policies, invoices and data handling in place. Book a free consultation.