Below is the proposed outline for our infographic. This outline focuses on commercial abuses, fraud, and defective products.
I) The Legal Framework for Online Consumer Protection in Egypt
A) Fundamental Legislative Texts
General Provisions on Consumer Protection Against Commercial Fraud
Analysis of the main provisions related to consumer protection.
Review of relevant articles concerning online sales.
Specific Provisions on E-Commerce and Distance Contracts
B) Regulatory Bodies and Their Role
Consumer Protection Authority
The Authority's role in implementing laws and protecting consumer rights.
Complaint mechanisms and recourse for harmed consumers.
Competent Courts
Presentation of the jurisdictions that handle consumer protection disputes.
Examination of judicial procedures in the event of a dispute.
II) Specific Guarantees Offered to Consumers Regarding Online Products
A) Consumer Rights Against Commercial Abuses
Right to Information
The obligation of merchants to provide clear information about products (prices, characteristics, sales conditions).
Analysis of the liability of online sales platforms.
Right of Withdrawal
Details on the withdrawal period and its conditions.
Examples of situations where the right of withdrawal can be exercised.
B) Protections Against Fraud and Defective Products
Mechanisms for Combating Fraud
Legal provisions regarding fraud in online transactions.
The role of regulatory bodies in monitoring commercial practices.
Guarantees for Defective Products
Remedies available to consumers upon receiving defective products (repair, replacement, refund).
Examination of seller liability for non-compliant products.
Consumer protection in the realm of online transactions has become a priority for the Egyptian government. With the rapid expansion of the internet retail market, safeguarding consumer rights is critical to maintaining trust and ensuring a safe online shopping experience
Egypt's internet retail business has expanded rapidly in the last few years, consequently, it’s critical that consumer protection rules are robust. The cornerstone of this protection is the Consumer Protection Law (“Law No. 67 of 2006”). It guards against deceptive advertising and unfair business practices and guarantees that customers receive accurate and truthful information about items before making a purchase.
In particular, the E-Commerce Law (“Law No. 15 of 2020”) was introduced to support online commerce. When shopping online, Egyptian consumers enjoy a number of significant privileges. Customers are entitled to quality products, truthful product information, and the ability to return defective or unsatisfactory goods for a complete refund. Additionally, the rules safeguard the privacy of consumers by informing them of the uses and sharing of their personal data.
Both the Consumer Protection Agency (“CPA”) and the Ministry of Communications and Information Technology play key roles in enforcing these laws, ensuring that consumers are informed of their rights and can seek redress when needed. As Egypt’s e-commerce sector continues to grow, the government is committed to strengthening these protections, fostering consumer confidence in online transactions.
The overall goal of Egypt's legislation safeguarding internet shoppers is to establish a reliable and secure online marketplace. These regulations contribute to the growth of customer confidence in online buying by outlining the obligations and rights of firms. As the internet market continues to grow, it will be crucial to keep enhancing these protections to guarantee consumers can buy securely and with peace of mind.
Having established the legal foundation for protecting online consumers in Egypt, we will now delve into how these laws function in practice. The specific rights that consumers have shall be explored, as well as how these rights are enforced, and what they can do to ensure they’re treated fairly when shopping online. By breaking this down, we can see not just the importance of these laws, but also how they make online shopping a safer and more trustworthy experience for everyone. Let us now examine how these legal protections are applied in practice.
This article will explore the legal framework that governs the protection of online consumers in Egypt. In the first part, we will examine the general legal framework for consumer protection in the context of online transactions (I). The second part will delve into the specific guarantees provided to consumers when purchasing products online, addressing key protections against commercial abuse, fraud, and defective good (II).
I. The Legal Framework for Online Consumer Protection in Egypt
A) Key Legislative Texts
i. General provisions regarding consumer protection against commercial fraud
Before talking about the protective measures put in place to protect consumers from illicit commercial practices such as fraud and the selling of faulty products via online contracting or Remote Contracting, we must firstly proceed by analyzing what kind of measures the Egyptian Law sets in place to combat such practices in the general sense, i.e., not specifically in the context of online transactions.
The Egyptian Law, in its general provisions, specifies what constitutes an illicit commercial practice. In Law No. 181 of 2018 issuing the consumer protection law ("Egyptian Consumer Protection Law") and Prime Minister’s Decision No. 822 of 2019 issuing the executive regulations ("Consumer Protection Law’s Executive Regulation"), the term "Deceptive Behavior" or "Fraudulent Behavior" is defined as “Any act or abstinence by the Producer or Advertiser that leads to creating an unrealistic or misleading impression of the Consumer, or leads to confusion or error.” The law also elaborates on specific elements of a transaction where fraud must not occur, including the nature, source, weight, size, manufacture method, production date, price (including taxes), warranties, discounts, and available quantity
This notion of commercial Deceptive Behavior is not new to Egyptian legislation. It has long been condemned by the Egyptian Law. In Law No. 48 of 1941 issuing the law on combating fraud and deception ("Fraud and Deception Suppression Law"), as modified by Law No. 281 of 1994, the first article, similar to Article 9 of the Egyptian Consumer Protection Law, outlines elements that should not be subject to fraudulent behavior (such as the nature, source, characteristics, quantity, or weight of products). This article also establishes penalties, stating that anyone who deceives or attempts to deceive may face imprisonment of at least one year and/or a fine ranging from 5,000 to 20,000 Egyptian pounds, or the value of the product in question, whichever is greater.
ii. Specific provisions in regards to Remote Contracting
The rapid growth of e-commerce has made traditional legal provisions insufficient for addressing the complexities of online trade. In response, Egyptian lawmakers updated the Consumer Protection Law, adding Chapter 3 on "Remote Contracting," which governs the sale or purchase of products through the Internet or other means of communication. This chapter focuses on protecting consumers by ensuring transparency, such as in Article 37, which obligates suppliers to provide detailed information, including their name, registration, and tax details. Consumers must also confirm their consent to remote contracts, with a 7-day window to modify or correct their consent, except when the product has already been received or specially ordered.
The law allows consumers to rescind contracts within 24 hours of receiving a product, with a refund processed within 7 days. In cases where suppliers fail to deliver on time, consumers can rescind within 14 days of the delay, without bearing delivery fees. However, Article 25 of the law's Executive Regulation lists exceptions where the right to rescind is void, such as for products specifically made on request, or for perishable goods and services already utilized.
Beyond the Consumer Protection Law, the Egyptian Cyber-crime Law (2018) protects consumers in online transactions, particularly regarding bank information. Article 23 criminalizes unauthorized access to bank details, with penalties ranging from fines and imprisonment, depending on the intent and severity of the violation.
While these laws provide a protective framework for consumers, there are notable exclusions, particularly for online contracts related to banking services, stock trading, and bookings for hotels or flights. This raises questions about whether current regulations are sufficient to cover all potential disputes in the realm of online commerce.
iii. Comparative analysis with the state of legislation in foreign governments: the European Union
The European Union has established a robust framework of legislation to protect consumers in e-commerce and online contracts through directive number 2000/31/EC on certain legal aspects of information society services, particularly electronic commerce (the “Directive on Electronic Commerce”). This directive focuses exclusively on electronic commerce and lays the groundwork for consumer rights in online transactions, mirroring provisions in the Egyptian Consumer Protection Law’s third chapter on Remote Contracting. Both legislations emphasize transparency and the obligation for providers to offer clear information about goods and services.
Most recently, in 2018, a proposal was made to revise EU consumer protection rules to strengthen existing regulations and implement new provisions. Two key provisions address emerging issues in electronically conducted transactions. The first concerns online marketplaces (e.g., Amazon), requiring them to inform consumers about how offers are ranked in search results, specifying whether priority is based on relevance or “paid placements.” This measure ensures consumer protection from unfair commercial practices. The second provision extends consumer protection to services exchanged for personal data, asserting that these services cannot be regarded as simply ‘free.’ Consumers should have the same rights to pre-contractual information and to cancel within a 14-day withdrawal period, regardless of payment method.
This proposal was approved, and directive 2019/2161 was published and took effect on 7 January 2020, with EU member states required to apply the new provisions since 2022. Currently, these provisions have no equivalent in the Egyptian Consumer Protection Law or other national legislative texts, highlighting the need for comprehensive reforms to better safeguard consumer rights in the evolving market landscape.
Having explored the key legislative texts that form the foundation of online consumer protection in Egypt, we now turn our attention to the regulatory bodies responsible for enforcing these laws and ensuring consumer rights are upheld. This next section will delve into the essential roles these organizations play in the implementation of the legal framework and the protection of consumers against fraud and unfair practices in the digital marketplace (I. B.)
I. B. Regulatory Bodies and Their Role
1. The Consumer Protection Authority (“CPA”)
a. Role of the Authority in Implementing Laws and Protecting Consumer Rights:
The Consumer Protection Authority (“CPA”) in Egypt, established by Law No. 67 of 2006, plays an essential role in enforcing consumer protection laws. It monitors business practices, manages consumer complaints, and takes legal action against non-compliant businesses. The CPA collaborates with national and international regulators to enhance the effectiveness of consumer rights protection.
A key area of focus for the CPA is the protection of consumers in online transactions, a rapidly growing sector. With the rise of e-commerce, the CPA ensures that businesses respect consumers' rights online by imposing transparency obligations regarding pricing, sales conditions, and return policies. It also ensures that consumers have access to clear information and complaint mechanisms for any fraud or misleading business practices in the digital environment. Thus, the CPA plays a crucial role in ensuring a safe and fair framework for online transactions in Egypt.
b. Legal Guarantees Offered by Egyptian Law Regarding Online Consumer Protection:
Egyptian law guarantees the protection of online consumers by requiring sellers to provide transparent information, ensure the right of withdrawal, and avoid misleading commercial practices.
Egyptian law offers several guarantees aimed at protecting consumers from commercial abuses, fraud, or receiving defective products. The central legal framework is Law No. 67 of 2006 on Consumer Protection, which aims to regulate commercial relations between consumers and suppliers of goods and services, including online transactions, such as:
Transparency of Information: Sellers must provide complete details about products (features, prices, sales and return conditions).
Right of Withdrawal: Consumers can withdraw from an online sale within 14 days without justification, provided that the product is returned in good condition.
Protection Against Misleading Practices: Sellers are required to avoid false advertising and fraud, under penalty of sanctions.
These guarantees are supported by a set of regulatory bodies and redress mechanisms that ensure the application of the law.
c. Complaint and Redress Mechanisms for Affected Consumers:
Affected consumers can file complaints with the CPA through various channels, including a dedicated hotline, complaint offices within the Egyptian National Postal Authority, or in person. The CPA conducts investigations into complaints, imposes sanctions on guilty businesses (such as fines), and can also order product recalls. In case of disputes, the CPA offers mediation services between consumers and businesses to facilitate an amicable resolution.
2. Competent Courts
o Overview of Jurisdictions Dealing with Consumer Protection Disputes:
Disputes related to online transactions in Egypt are handled by first-instance courts. These courts focus on commercial abuses, fraud, and defective products, ensuring the enforcement of laws and the defense of consumer rights. They examine complaints and rule on redress.
In cases of non-compliance with the right of withdrawal or lack of transparency in the information provided by sellers, courts may order compensation, refunds, or sanctions against the offending businesses, thus ensuring consumer protection in e-commerce.
o Examination of Judicial Procedures in Case of Dispute:
In case of a dispute, consumers can file a complaint with the competent first-instance court; consumers can bring lawsuits for disputes related to defective products or online commercial abuses and can also resort to mediation through the CPA. They can benefit from the assistance of consumer protection associations for advice and representation.
Having established the legal framework and the key legislative texts that underpin online consumer protection in Egypt, as well as the vital role played by regulatory bodies in enforcing these laws, we will now shift our focus to the specific guarantees afforded to consumers regarding online products. This next section will examine the rights and protections available to consumers to safeguard against unfair practices and ensure a secure online shopping experience. (II).
II. Specific Guarantees Offered to Consumers Regarding Online Products
II. A. Consumer Rights Against Commercial Abuses
i. The Right to Information
One of the foundational rights for consumers under Egyptian law is the right to clear and transparent information regarding products sold online. This right is especially important in the digital age, where consumers often rely solely on the descriptions and images provided on online platforms to make purchase decisions.
○ Legislative text:
Article 4 of Law No. 181 of 2018 establishes that suppliers and merchants are obligated to provide consumers with clear and accurate information about the products or services they offer. This information must include:
The price of the product displayed clearly without ambiguity.
A detailed description of the characteristics of the product, such as size, material, and functionality.
Conditions of sale, including terms related to payment, delivery, and any applicable return policies.
The obligation to provide this information is not limited to traditional physical sales but also applies to online sales platforms. The clarity and accuracy of this information enable consumers to make informed purchasing decisions, thus mitigating the risk of deception or misunderstanding.
○ Platform Liability
Article 10 of Law No. 181 of 2018 expands on the responsibility of online sales platforms, mandating that these platforms ensure the accuracy and completeness of the information provided. The law places a clear burden on e-commerce platforms to guarantee that the products they list are compliant with legal standards and that all provided information is accurate. If an online platform fails to provide the necessary information or provides misleading information, it can be held liable for any damages resulting from such misconduct.
This provision underscores the Egyptian legal system's commitment to protecting consumers from unfair or deceptive commercial practices in the growing online marketplace. It reinforces the need for transparency and accountability among merchants and intermediaries.
ii. The Right of Withdrawal (Right to Retract)
In addition to the right to information, Egyptian law grants consumers the right of withdrawal, often referred to as the right to retract or a cooling-off period. This right is particularly important for online consumers, who may not have the opportunity to inspect the product physically before purchase.
○ Legislative text:
Article 17 of Law No. 181 of 2018 entitles consumers to withdraw from a purchase within 14 days of receiving the product, without the need to provide any reason or incur a penalty. This right of withdrawal is separate from the right to return or replace a defective product within 30 days, referred to in Article 21 of Law No. 181 of 2018, if it does not conform to the specified specifications or intended purpose. This cooling-off period is critical in protecting consumers from buyer's remorse or from products that may not meet their expectations. The law specifies that the product must be returned in the same condition as when it was delivered, allowing for non-use but not for significant deterioration or damage.
This right is particularly relevant for online transactions, where consumers may have a limited understanding of the product's physical characteristics, making post-purchase dissatisfaction more likely. The right of withdrawal provides consumers with a legal safeguard, enabling them to reassess their purchase decision once the product is in hand.
Regarding this right, Egypt has aligned its consumer protection laws with the European Union law, adopting a 14-day withdrawal period in accordance with Article 29 of Directive 2011/83/EU on Consumer Rights. This reflects Egypt's efforts to enhance consumer rights and protections.
○ Conditions and Exceptions
Article 18 of Law No. 181 of 2018 outlines the exceptions to the right of withdrawal, acknowledging that not all products can be returned. For example, the law excludes perishable goods or products that cannot be resold due to hygiene concerns (e.g., personal care products once opened). These exceptions are designed to balance consumer protection with the commercial realities of certain product categories.
After examining the specific guarantees protecting consumers from commercial abuses, we will now focus on the protections against fraud and defective products. This section will highlight the measures in place to ensure consumer safety in online transactions. (I. B.)
I. B. Protections Against Fraud and Defective Products
i. Legislation Against Online Fraud
Consumer Protection Law No. 181/2018: Aimed at safeguarding consumers in the digital marketplace, this law necessitates transparency in product descriptions, clear pricing, and grants consumers the right to return or exchange online purchases under specific conditions.
The Egyptian Law No. 181 of 2018 on Consumer Protection and Law no. 175 of 2018 on cybercrime Law aims to safeguard the rights and interests of consumers in Egypt which specifically aims to protect consumers from fraud and deceptive practices. It covers both offline and online transactions.
Below is a summary of its main provisions:
○ Key Provisions:
Consumer Rights: The law guarantees several fundamental rights for consumers, including the right to:
Protection from hazardous products.
Accurate and clear information about products and services.
Free choice of goods and services without coercion.
Fair treatment and respect.
Compensation for damages caused by defective goods or services.
The right to be informed about products and services, their specifications, and potential risks.
Obligations of Suppliers and Traders:
Suppliers must ensure the quality, safety, and compliance of products with relevant standards.
Clear labeling and pricing of products are mandatory, with no hidden charges.
Suppliers must provide an invoice detailing the product or service and its cost.
Advertisements must be honest, clear, and not misleading.
Sellers are obligated to deliver the product or service as agreed and in line with what was advertised.
Product Return and Refund Policies:
Consumers have the right to return a product within 14 days from the date of purchase if the product is defective, does not conform to specifications, or if the seller fails to meet the terms of the contract.
Cybercrime Law (Law No. 175 of 2018):
Egypt also has the Cybercrime Law, which aims to combat online crimes, including online shopping fraud. Under this law: Any fraudulent activities carried out via electronic platforms are punishable. Scammers can face penalties such as imprisonment and hefty fines if found guilty of fraud, phishing, or hacking consumer data. The law also holds online platforms accountable for protecting consumer information. The seller is required to replace or repair the defective product or refund the consumer.
Sanctions for Violations:
Violations of the law, such as misleading advertising, selling defective products, or refusing to issue invoices, can result in fines ranging from 10,000 EGP to 2 million EGP. Repeated violations can lead to more severe penalties, including suspension of business operations.
Advertising Regulations:
Advertisements must be clear and truthful, avoiding false claims about product qualities or services.Comparative advertising that unfairly discredits competitors is prohibited.
ii. Available Remedies for Consumers:
Consumer Protection Agency:
The law establishes the Consumer Protection Agency (CPA), tasked with overseeing market activities, investigating complaints, enforcing consumer rights, and applying sanctions. The CPA has the authority to conduct inspections and issue warnings or fines for non-compliance. The law mandates immediate recalls and warnings for products found to be harmful or unsafe to the public, and suppliers are held responsible for taking corrective actions.
Consumer Dispute Resolution:
The law provides mechanisms for resolving consumer complaints and disputes, including alternative dispute resolution methods.Consumers can file complaints to the Consumer Protection Agency (CPA) if they fall victim to fraud.
iii. Practical Examples of Fraud in Egypt:
Fake E-Commerce Websites:
Fraudsters set up fake e-commerce websites mimicking well-known online platforms or creating entirely new platforms that appear legitimate. Consumers are tricked into making purchases, only to never receive the goods or receive counterfeit or defective items. For example, during the COVID-19 pandemic, several fake websites emerged selling essential supplies like face masks and sanitizers at inflated prices.
Fake Product Listings on Social Media:
Many Egyptians rely on social media platforms such as Facebook and Instagram for online shopping. Scammers take advantage of this by creating fake accounts or pages advertising luxury items at significantly discounted prices. Once payment is made, the seller disappears, or the buyer receives substandard or fake products. This type of fraud is common in sectors such as electronics, cosmetics, and fashion.
Phishing Scams:
Fraudsters send out emails or messages pretending to be from a legitimate e-commerce website, urging consumers to click on a link to verify their account or confirm an order. The link leads to a fake website where consumers unknowingly enter sensitive information, such as credit card details, which are then stolen by the scammer.
Advance Payment Scams:
Scammers advertise high-demand products and ask for full payment in advance or a deposit, only to never deliver the product. Many people have reported paying for mobile phones, laptops, or other gadgets that were never shipped to them.
iv. Potential limitations of enforcing consumer protection law:
Certainly the Egyptian law provides protection to consumers but that doesn’t mean that it does not face Potential Limitations of Enforcing Consumer Protection Laws from Online Shopping Scams.
Enforcing laws that protect consumers from online shopping scams in Egypt faces several limitations such as:
Firstly, there is often a lack of comprehensive legal frameworks that specifically address online fraud, and existing laws might not be adequately updated to deal with the fast-evolving e-commerce landscape.
Additionally, there are limitations in monitoring and regulating online platforms, especially informal ones that operate outside the scope of regulatory oversight.
Furthermore, law enforcement agencies and regulatory bodies may face challenges due to limited resources and technological expertise, making it difficult to track and prosecute online scammers. Public awareness about consumer rights and protection laws is also relatively low, leaving many consumers vulnerable to fraud.
Therefore ,Consumers often have limited recourse to recover funds once they fall victim to fraud, as there are few effective mechanisms for reporting scams or obtaining refunds.
Additionally, many online transactions occur through cash-on-delivery systems, complicating the process of securing refunds. Lastly, the lack of consumer education on safe online shopping practices leaves many unaware of the risks and legal protections available to them.
In conclusion, the legal protections for online consumers in Egypt are vital for creating a safe and reliable shopping experience. With laws like the Consumer Protection Law and the E-Commerce Law, shoppers have clear rights that help them navigate the sometimes tricky world of online buying. These laws not only promote fairness and transparency but also empower consumers to stand up for themselves when things go wrong.
By enacting these laws and regulations, the Egyptian government seeks to strengthen consumer protection and minimize the risks associated with online shopping fraud. However, consumer awareness remains critical in identifying and avoiding fraudulent schemes.
As e-commerce continues to grow, it’s important for all of us to stay informed about our rights and know where to turn for support, like the resources offered by the Consumer Protection Agency (“CPA”). By understanding these protections, we can shop online with confidence, knowing we’re protected against unfair practices. Looking ahead, it will be crucial to keep strengthening these laws to ensure that trust and safety remain at the forefront of Egypt’s expanding digital marketplace.
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