Saudis in the crosshairs of new global retailers.

## Saudi Arabia Sees Rise in Cross-Border E-Commerce, Raising Consumer Protection Concerns

Saudi Arabia is experiencing an acceleration in digital transformation, with growing demand for online shopping. This has led to a surge in activity from foreign online stores directly targeting Saudi consumers through personalized social media advertising and websites supporting Arabic language and accepting payment in Riyal. This trend reflects the attractiveness of the Saudi market, but simultaneously raises concerns regarding consumer protection, dispute resolution mechanisms, and combating fraud.

The Saudi market represents a key destination for e-commerce in the region, driven by high internet and smartphone penetration rates, the development of digital payment systems, and the consumer’s purchasing power. International stores, both established brands and startups, are leveraging these factors to attract Saudi customers, often by tailoring their websites to local preferences, such as displaying prices in Riyal and offering promotions tied to local events.

However, many of these stores lack a legal presence within the Kingdom, placing consumers outside the scope of regulatory protection and complicating the process of claiming rights in the event of a dispute. Fraudulent and deceptive practices are diverse, ranging from receiving products differing from advertised specifications in terms of quality or brand, to the sale of counterfeit or non-compliant goods. Deceptive practices also include concealing shipping costs and taxes, implementing complex return policies, and, in some cases, the website disappearing after payment is received or the exploitation of bank card data.

The majority of complaints center around products such as electronics, perfumes, cosmetics, branded clothing, auto parts, and seasonal offers with exaggerated discounts.

The E-Commerce Law issued in 2019, and the Anti-Commercial Fraud Law, provide a legal framework for consumer protection, obligating stores to disclose their data, product characteristics, and price, as well as clarify exchange and return policies. The Ministry of Commerce also allows consumers to submit complaints through the “Commercial Report” application. However, the effectiveness of these systems depends on the existence of a legal entity within the Kingdom that can be held accountable, which is often lacking in the case of foreign stores.

When faced with fraud, consumers are advised to immediately contact their bank or card issuer to stop the transaction or activate a chargeback mechanism, document all transaction details, and file a formal report. Banking systems offer protection to bank customers, but the scope varies depending on the method of payment.

Competent authorities have the power to block violating websites and remove misleading advertisements from social media platforms. However, the dynamic nature of the digital space requires continuous monitoring and international cooperation to limit these practices.

To mitigate risks, consumers should verify the presence of clear commercial data, a physical address, and a specific return policy for the store, check independent reviews, ensure the use of electronic security protocols, and avoid unrealistic offers. Dealing with officially registered stores within the Kingdom or well-known brands remains the safest option.