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Posted On: 12 February 2022 01:22 pm
Updated On: 13 February 2022 04:58 pm

Online delivery platforms in Qatar obligated to follow consumer protection laws or face penalties: MOCI

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The Ministry of Commerce and Industry notes the need for the commitment by delivery companies on electronic platforms to the provisions of the Ministerial Resolution No. (8) of 2013 regarding the regulations for increasing the goods & services prices, and Law No. (8) of 2008 on consumer protection.

Online delivery companies obligated to follow Law No. (8) of 2008 on consumer protection

The Ministry of Commerce and Industry would like to inform individuals in charge of online delivery companies operating within Qatar of the need to exercise their obligations towards the protection of consumer rights, especially in terms of applying fair pricing, in accordance with the provisions of the laws and regulations in force, particularly Law No. (8) of 2008 on Consumer Protection.

In this context, the Ministry reminds all online delivery companies that the Ministry has the exclusive competence in regulating and controlling the price of goods and services within the local market, as per the laws, in order to support the sustainability of economic activities, promote market balance, control inflation rates, and support the purchasing power of citizens and residents.

Based on the second paragraph of Article (10) of Decree-Law No. (14) of 2011 amending Law No. (8) of 2008 on Consumer Protection,

"the supplier may not cause any increase in the price of commodities and services without complying with the principles and controls issued in the Minister's resolution."

Hence, on 20 February 2013, the Minister of Commerce and Industry issued Resolution No. (8) of 2013 regarding the controls and regulations for increasing the price of goods and services. This specific resolution has also defined the standards and conditions of dealing with price increases.

Rates and fees for marketing and delivery services

Based on the delivery service fees (by bike/vehicle), and the current service prices determined as a percentage of the total order (marketing/marketing and delivery) used in markets and by suppliers (restaurants, cafes, cafeterias, stores, hypermarkets, and supermarkets, as well as other contracted suppliers, not e-commerce companies), the rates and fees for marketing and delivery services defined by these businesses were set as follows:

  • Bike delivery service: 10 QAR
  • Vehicle delivery service: 20 QAR
  • The price imposed on the suppliers for the service/total order price in the case of marketing only: 10%
  • The price imposed on the suppliers for the service/total order price in the event of marketing and delivery: 19%

Therefore, the Ministry stresses the need to adhere to the conditions stipulated in the applicable laws and regulations, and to maintain adherence to the fees of e-marketing and product delivery services, as per the percentages and rates specified above that are currently applied in markets.

The Ministry also notes that it is not permissible to apply any increase to the approved wages and rates, except by submitting a request to the Committee Tasked with Determining Maximum Prices and Profit Ratios, and obtaining its prior approval after conducting the necessary evaluation pursuant to the specified standards and conditions.

Penalties for violations of Article No. (10) of Law No. (8) of 2008 on Consumer Protection

The Ministry stresses that anyone who violates the provisions of Article No. (10) of Law No. (8) of 2008 on Consumer Protection will be subject to penalties of up to:

  • A fine of one million QR
  • Administrative closure for a period of three months

The Ministry of Commerce and Industry calls upon all restaurants, cafes, cafeterias, shops, major outlets, and suppliers not to sign contracts with delivery companies that define wages and rates higher than those specified above. In the event that the wages and rates imposed on them do not correspond to this circular, the concerned parties must communicate with the competent authorities at the Ministry.

Source: MOCI