Kuwait Strengthens Oversight of Online Businesses with New Digital Commerce Law

Law No. (10) of 2026 Regulating the Digital Commerce Sector

Law No. (10) of 2026 regarding the regulation of the digital commerce sector in Kuwait establishes a legal framework governing commercial activities conducted through digital and electronic platforms within the State of Kuwait. The law aims at regulating the expanding digital marketplace, enhance consumer protection, and ensure the proper supervision of entities operating in the digital commerce sector.

1- Scope and Objectives of the Law

The law applies to persons and entities engaging in digital commerce activities, including operators of online marketplaces, electronic retail platforms, and other intermediaries facilitating commercial transactions through electronic means. The primary objectives of the law are to regulate the conduct of digital commercial activities, ensure transparency among digital commerce operators; and protect consumers engaging in online transactions.

2- Registration Requirement

The law introduces mandatory regulatory registration for entities conducting digital commerce activities. Operators of digital commerce platforms, as well as businesses conducting commercial transactions through electronic channels, are required to register with the Ministry of Commerce and Industry (“MOCI”) in accordance with the applicable procedures.

MOCI maintains electronic records and files for product and service providers operating within the digital commerce ecosystem to facilitate regulatory monitoring and compliance verification.

 3- Obligations of Digital Commerce Operators

Digital commerce operators are subject to operational and disclosure obligations in order to ensure consumer awareness in electronic transactions. Operators must provide clear and accessible information to users, including:

– Technical steps required to conclude electronic contracts;

– The identity and contact details of the product or service provider;

– Accurate descriptions of the essential characteristics of products or services offered;

– The final price of products or services, including all applicable charges such as delivery fees and taxes, where applicable;

– Accepted payment methods, delivery arrangements, and execution timelines;

– Validity periods of promotional offers or discounted pricing; and

– Clear policies regarding return, refund, and exchange procedures.

Digital commerce platforms must ensure that information displayed to users is accurate, reliable, and free from misleading or deceptive representations that may adversely affect consumer interests.

4- Consumer Protection Measures

Consumer protection constitutes a fundamental objective of the regulatory regime established under the law. Digital commerce operators must ensure that consumers are adequately informed of their contractual rights and that electronic transactions are conducted in accordance with principles of transparency, fairness, and good faith.

5- Electronic Documents and E-Signatures

Digital commerce operators are required to retain electronic records and documents related to commercial transactions for a minimum period of five (5) years. Such records must be stored in formats that ensure data integrity, accessibility, and traceability for purposes of audit, regulatory inspection, enforcement actions, and dispute resolution. Operators shall provide access to such records to MOCI upon request.

The law also regulates electronic signatures which must clearly verify and document the identity of signatories. Electronic signatures remain subject to the provisions of Law No. 20 of 2014 on Electronic Transactions, which recognizes the legal validity and enforceability of electronic signatures in Kuwait.

 6- Regulatory Oversight and Compliance

MOCI may establish one or more violations committees and delegate to them regulatory and supervisory authority to monitor and enforce compliance with digital commerce regulations.

The committees are granted broad powers to review and adjudicate violations referred by MOCI inspectors and to impose appropriate regulatory measures. In particular, such powers may include:

– Reviewing violations referred by MOCI inspectors and determining the appropriate regulatory action;

– Ordering the suspension or blocking of the digital store or platform through which the service provider operates, where necessary; and

– Considering violations referred by the competent violation committee and taking appropriate enforcement measures in accordance with the law.

7- Enforcement and Penalties

The law establishes enforcement mechanisms to ensure compliance with its provisions.

Without prejudice to other applicable laws, violations may result in criminal and administrative penalties, including imprisonment for a period of up to one year and/or a monetary fine of not less than KWD 1,000 and not exceeding KWD 10,000 in circumstances including, but not limited to:

– Failure to comply with mandatory registration requirements;

– Submission of false, misleading, or fraudulent data or documentation;

– Display, promotion, or sale of prohibited or illicit products; or

– Conducting activities contrary to public order or morality.

8- Impact on the Digital Commerce Sector

The introduction of Law No. (10) of 2026 represents a significant regulatory advancement in the governance of electronic commercial activities in Kuwait.

The regulatory framework is expected to enhance consumer confidence in online transactions, promote online market transparency, and encourage the adoption of responsible business practices among digital commerce operators.

Our team continues to advise clients on the practical implications of the new legal framework and on aligning contractual arrangements and standard documentation accordingly.

Authors: Michel Ghanem (Partner) and Rosy Rizk (Associate)