Kuwait has enacted a new decree law aimed at modernising and regulating the country’s fast growing digital commerce sector. Decree Law No. 10 of 2026, published in the official gazette Kuwait Al Youm, introduces a comprehensive legal framework designed to enhance consumer confidence, improve transparency and align with global digital economy standards.
Mandatory Registration for Online Businesses
Under the new legislation, any company operating in Kuwait’s digital commerce sector must register with the Ministry of Commerce and Industry. Businesses that fail to register will not be permitted to legally provide online products or services.
The Ministry of Commerce and Industry will oversee enforcement of the law. Its responsibilities include issuing executive regulations, creating and maintaining electronic registers for digital product and service providers, and determining registration procedures and applicable fees.
Stronger Consumer Rights in Online Contracts
A dedicated section of the law focuses on consumer protection in electronic transactions. Recognising that consumers are often the weaker party in digital agreements, the law introduces several safeguards.
Consumers are given the right to review and correct errors before confirming an online contract. They are also entitled to return goods within 14 days of receiving them or signing an agreement, depending on the nature of the transaction. Refunds must be processed using the same payment method originally used, without additional charges in cases defined by the regulations.
Transparency and Data Protection Obligations
Digital service providers are required to disclose essential information, including business details and contractual terms, in a clear and accessible manner. The law mandates the issuance of electronic invoices for all transactions and obliges businesses to establish formal complaint handling mechanisms.
Companies must also ensure the protection of consumer data and comply with cybersecurity standards issued by the relevant authorities. Regular system updates and security enhancements are required to address evolving digital threats.
Regulation of Digital Advertising and Influencer Marketing
The new framework introduces clear rules for online advertising. False or misleading claims, content that breaches public order or moral standards, unauthorised trademark use and deceptive promotional practices are strictly prohibited.
Businesses are granted a 24 hour grace period to correct advertising violations before further legal action is taken.
The law permits the use of social media influencers for promotional campaigns. However, companies must clearly disclose the contractual relationship between the influencer and the advertiser. Transparency is mandatory, and any form of fraud or deception in marketing practices is prohibited.
Legal Recognition of Electronic Documents and Signatures
The legislation grants legal validity to electronic documents, records and digital signatures, provided they comply with established regulations. It also defines the specific circumstances under which an electronic signature may be revoked.
Electronic Payments and Central Bank Oversight
Entities licensed by the Central Bank of Kuwait must strictly adhere to financial regulations related to electronic payment services. The law prohibits imposing additional fees on customers for using electronic payment methods unless permitted under official guidelines.
Digital payment services must be conducted exclusively through authorised electronic platforms, and service providers are required to implement cybersecurity standards issued by the Central Bank and other competent authorities.
Enforcement Mechanisms and Penalties
To ensure compliance, the law establishes two specialised committees. One committee will investigate and document violations, while the other will handle disputes between consumers and digital service providers. Serious offences will be referred to the Public Prosecution.
Penalties for non compliance include financial fines, which may be doubled in cases of repeat violations. Authorities may also order the closure of businesses and confiscate equipment used in unlawful activities. Company managers can be held personally liable if it is proven they were aware of violations.
Implementation Timeline
The concerned minister must issue the executive regulations within one year of the law’s publication in the official gazette. The decree law will come into force one month after the implementing regulations are officially published.
This new digital commerce framework marks a significant step in Kuwait’s efforts to strengthen consumer protection, regulate online businesses and build trust in the country’s digital marketplace.
