One day you walk into a shop, see a beautiful product for a specific affordable price, and, being satisfied with the price, you go to the cashier to pay the price. When the bill comes, you see that there is an additional fee that has been added to the bill. It could be named as a service fee, credit card charges, payment-processing cost, or anything, and the final amount exceeds the price that initially influenced the consumer’s decision to purchase. Such unexpected charges raise an important question: can businesses in the UAE lawfully impose costs that were not clearly disclosed from the outset?

The obligation to clearly announce prices

Article 8(1) of the Federal Law No. (15) of 2020 on Consumer Protection states that if a commodity is offered for sale, then the provider is obligated to clearly write the price thereon.

Similarly, under Article 5(1) of the Cabinet Resolution No. (66) of 2023 Concerning the Executive Regulations of Federal Law No. (15) of 2020 Concerning Consumer Protection specifically states that the sellers must announce the prices in a clear and legible manner by:

  1. writing the price directly on the product;
  2. placing the price information on a card where the product is displayed; or
  3. displaying the price information at the place where the service is offered.

Hidden charges and misleading pricing

Under Article 8(2) of the consumer protection law clearly mentions that the prices of the commodities and services and services offered by the provider must not be misleading.

Here, you can discuss hidden charges. A fee may potentially be problematic if:

  1. it is not disclosed before payment;
  2. the advertised price does not reflect the amount actually payable;
  3. mandatory charges are added only at the final stage of the transaction; or
  4. consumers are led to believe that a product costs less than its actual price.

It is not that every hidden charge is illegal it depends on if the extra charges amount to misleading pricing practices, depending on the circumstances. The legal concern is not necessarily the existence of an additional charge itself, but whether the consumer was adequately informed about it.

The role of invoices in preventing hidden charges

Article 8(3) requires providers to issue a detailed invoice containing:

  1. the trade name;
  2. the address;
  3. the type of commodity or service;
  4. the price;
  5. the quantity; and
  6. any additional details required by law.

Can you be charged any extra charged for using credit card for payment?

Article 5(3) of the Cabinet Resolution specifically prohibits any additional amounts to the value of the goods purchased if they are using credit cards.

In this provision there is no room for interpretation this section specifically prohibits additional charges for paying through credit cards.

Conclusion

The UAE Consumer Protection Law places significant emphasis on transparency in pricing and seeks to ensure that consumers are fully informed before making a purchase. Businesses are required to clearly display the prices of goods and services and must avoid misleading pricing practices. While not every additional charge is necessarily unlawful, consumers should be made aware of any extra costs in advance. Furthermore, sellers are expressly prohibited from imposing additional charges merely because a consumer chooses to pay by credit card.

We at Ayesha Al Daheri Advocates and Legal Consultants, we represent clients in consumer disputes and are committed to protecting consumer rights.