The Ultimate Compliance Guide to Kuwait’s New Digital Commerce Law (Decree No. 10 of 2026)

The global shift toward a digital economy is accelerating, and the State of Kuwait is taking decisive steps to regulate this dynamic landscape. In an unprecedented legislative move aligned with the Kuwait 2035 vision, the government has issued Decree Law No. 10 of 2026 Regulating Work in the Digital Commerce Sector. This new law does not merely govern online buying and selling; it completely restructures the legal relationship between merchants, consumers, social media influencers, and digital payment providers.

At Al-Dostour Law Firm, a premier legal practice based in Kuwait, our corporate legal experts emphasize that ignorance of this law is not an excuse. With penalties reaching up to 10,000 Kuwaiti Dinars in fines, up to one year in prison, and the potential blocking of your online store, compliance is no longer optional.

Whether you are a local entrepreneur, a foreign investor, or a multinational company operating in Kuwait, this comprehensive guide will walk you through everything you need to know to protect your digital business and ensure absolute compliance.

The primary objective of Decree Law No. 10 of 2026 is to organize the digital commerce sector, creating a safe, transparent, and competitive environment that encourages investment while strictly protecting consumers. To achieve this, the legislator has established precise definitions:

• Digital Commerce: Any activity conducted entirely or partially through technological means by a product or service provider to trade, offer services, or advertise.

• Digital Store: A website, platform, or digital application that allows a provider to display or sell products, offer digital services (like software, e-books, and streaming), or advertise them.

• Influencers: Personalities who appear on social media and influence consumer decisions through the content they provide or their promotion of products and services.

If you own an e-commerce store or provide digital services in Kuwait, Chapter Three of the law imposes a series of strict obligations that must be implemented immediately to avoid legal liability:

1. Mandatory Registration and Disclosure

No person is permitted to work in the digital commerce sector before registering in the dedicated records at the Ministry of Commerce and Industry (MOCI). Furthermore, providers must clearly disclose essential information on their digital store, including their name or trade name, commercial register number, and available contact methods (such as email, phone numbers, and social media links).

2. Electronic Invoicing and Language Requirements

Immediately upon concluding a contract, the provider must send an electronic invoice to the consumer in Arabic. While other languages can be used alongside Arabic, the invoice must explicitly detail the product/service price, the total price including all fees, the delivery date and location, and the payment method used.

3. Transparent Contracts and Complaint Handling

The law mandates that providers offer a transparent and effective mechanism for handling consumer complaints, and records of these complaints must be retained for at least six months. Furthermore, providers must clearly explain the terms and conditions of the contract, including a precise description of the goods, final prices, delivery schedules, and clear return policies. If the provider faces delays or difficulties that materially affect the contract’s execution, they must notify the consumer promptly.

4. Cybersecurity and Data Protection

Addressing the technological aspect, the law requires providers to implement all measures and decisions issued by the National Cybersecurity Center regarding data protection. Providers must update their security systems periodically to counter emerging cyber threats.

Chapter Four of the law focuses heavily on protecting the consumer, who is often considered the weaker party in digital transactions. Key consumer rights established by this decree include:

The 14-Day Right of Return

Without prejudice to legal and contractual warranties, the consumer has the right to withdraw from an electronically concluded contract within fourteen (14) days of receiving the product. They can replace or return the item and receive a full refund via the original payment method (or another agreed method) without any additional costs, provided the product remains in its original condition. Exception: For precious metals and valuable commodities (to be specified by a Ministerial decision), the return window is strictly limited to 24 hours from the time of receipt.

Exceptions to the Return Policy

The law specifies clear scenarios where the consumer cannot return a product:

1. If the consumer has used or benefited from the product/service.

2. If the product was custom-made to the consumer’s specifications.

3. Perishable goods or products with a short shelf life.

4. Services related to accommodation, transport, catering, or leisure provided on a specific date or period.

5. Digital content/software if the download process has been successfully completed.

6. Activation codes and digital top-up cards, regardless of whether they have been used.

Correction of Electronic Errors

If a consumer makes an error while using the electronic contracting system, and the system does not provide a way to correct it, the consumer has the right to cancel or amend the erroneous part. This is conditional upon notifying the provider immediately upon discovery and provided the consumer has not yet utilized the product or service.

Chapter Five of Decree Law No. 10 of 2026 introduces radical changes that will reshape digital advertising and influencer marketing in Kuwait.

Electronic Advertising Controls

Digital commerce advertisements must include the provider’s name, the price, a clear and precise description of the product/service, and contact details. The law strictly prohibits any advertisement that contains:

• False, misleading claims, or content contrary to public order or morals.

• Counterfeit logos, images, or trademarks used without legal justification.

• Phrases that directly or indirectly deceive the consumer.

If a violation occurs, the Ministry will notify the violator to correct the issue within 24 hours. Failure to comply allows the Ministry to coordinate with relevant authorities to block the violating store.

Strict Rules for Influencer Marketing

If a store chooses to use influencers to promote its products or services, the law places heavy legal and financial obligations on the “product/service provider”:

1. Data Retention: Providers must retain all data, records, and agreements related to the influencer for a period of no less than five (5) years and present them to the Ministry upon request.

2. Anti-Money Laundering (AML) Compliance: All payments to influencers must be made through reliable payment methods that comply with AML standards, Central Bank of Kuwait instructions, and state banking regulations.

3. Prevention of Fraud: It is prohibited to use influencers in promotional campaigns that involve defrauding or misleading consumers, or that aim to evade established financial regulations.

The law embraces technological advancement and regulates emerging technologies:

• Electronic Payments: Providers must offer simple, transparent, and non-discriminatory e-payment methods that comply with Central Bank of Kuwait regulations. Providers are prohibited from imposing “additional fees” on consumers for using e-payment methods without prior approval from the Central Bank.

• Smart Contracts and Blockchain: The law explicitly permits the use of modern technologies such as blockchain and smart contracts in managing transactions with consumers.

• Regulatory Sandbox: For entrepreneurs wishing to launch an innovative digital product or service not yet covered by current legislation, the law allows them to apply to the Ministry to operate within an “experimental environment” (Sandbox). This allows for actual, limited operation under Ministry supervision, paving the way for eventual integration into the legal framework if successful.

To ensure the law’s strict enforcement, Chapter Eight establishes specialized committees within the Ministry:

1. The Violations Committee: Tasked with reviewing referred violations. It has the authority to block the store through which the provider operates for up to 30 days, or refer criminally punishable offenses to the Public Prosecution.

2. The Dispute Settlement Committee: Headed by a judge (no lower than the rank of Counselor), this committee settles disputes between consumers and providers regarding product defects or non-conformity to specifications.

Criminal Penalties (Chapter Nine)

The law is uncompromising toward violators. It stipulates penalties of imprisonment for a period not exceeding one year, and a fine of not less than 1,000 KD and not exceeding 10,000 KD (or one of these two penalties) for anyone who:

• Violates essential articles (e.g., failure to register, deceiving consumers, violating payment or influencer rules).

• Submits false data or forged documents to register in the Ministry’s records.

• Offers illegal products or services.

• Refuses to implement the decisions of the Dispute Settlement Committee.

Corporate Criminal Liability: The law explicitly states that the person responsible for the “actual management” of a corporate entity (e.g., the CEO or General Manager) shall be punished with the same penalties if it is proven they were aware of the violation or gained a direct personal benefit from it. Furthermore, the corporate entity is jointly liable for paying financial penalties and compensation if the violation was committed by an employee in its name or for its benefit.

Decree Law No. 10 of 2026 is a paradigm shift. It requires a complete restructuring of your terms and conditions, privacy policies, return mechanisms, and marketing contracts with influencers.

At Al-Dostour Law Firm, our dedicated corporate legal team provides the following services to ensure your absolute compliance:

• Drafting and reviewing Terms & Conditions to align with the new 14-day return right.

• Structuring airtight legal contracts with social media influencers that comply with AML regulations and the 5-year record retention mandate.

• Representing your company before the Violations Committee and the Dispute Settlement Committee at the Ministry of Commerce.

• Providing proactive consultations for tech startups looking to enter the Regulatory Sandbox securely.

Do not leave your digital commerce business vulnerable to store blockages or severe fines. Legal compliance is your first investment toward sustainable growth.

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