MC: Fines imposed on 13 car agencies for violating Commercial Agency Law

03 Aug 2023


The Ministry of Commerce has imposed financial fines on 13 car agencies across different regions of the Kingdom. These agencies were found to have violated the Commercial Agency Law, its executive regulations, and the provisions related to maintenance, spare parts, and ensuring the quality of manufacture. They also failed to provide adequate after-sales services to consumers.

The violations covered car agencies representing British, Italian, American, Korean, and Chinese brands.

The specific violations included not providing consumers with a replacement car or financial compensation during the maintenance period when their vehicles were unavailable.

Furthermore, the agencies were found to be non-compliant with providing spare parts with the required technical specifications within the agreed-upon timeframe.

They also failed to accept the consumer's car for service during the warranty period and didn't provide rare spare parts within the promised 14-day timeframe from the date of the consumer's order.

Other violations included delays in delivering new cars to consumers, failure to specify the agency's obligations to consumers, and not adhering to the provisions related to service and warranty conditions.

The Commercial Agencies Law and its implementing regulations require agents to consistently provide consumable spare parts and supply rare requested parts within a maximum period of 14 days from the date of the request. For parts that need to be manufactured or have specific technical specifications, an agreement is reached between the agent and the consumer regarding their provision within a reasonable timeframe.

Furthermore, the law emphasizes the importance of agents implementing a standardized procedural mechanism for selling goods and fulfilling their obligations towards the consumer. This mechanism should include a clear statement of the delivery date of the goods and the agent's responsibilities in case of any delays. Both the agent and the consumer should acknowledge these terms in writing, ensuring clarity and a shared understanding.

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Last Modified 10 Aug 2023