Businesses that flout consumer rules risk having their commercial registrations (CR) suspended or cancelled under tougher enforcement measures proposed by legislators.
MPs are due to debate amendments to Bahrain’s consumer protection law during tomorrow’s Parliament session, aimed at curbing deceptive promotions, tightening delivery rules and fast‑tracking penalties for violators.
The most significant change lies in Article 23, which grants the minister or his delegate the authority to impose administrative penalties without waiting for lengthy court procedures if violations are not rectified despite warnings.
Penalties include:
• Suspension of the business for up to three months (renewable)
• Suspension or cancellation of the Commercial Register
• Daily fines of up to BD1,000 for a first offence and BD2,000 for repeat violations within three years
• A total cap of BD20,000 per violation
• Shops suspended for violations must display a public notice on their façade, and decisions may be published in licensed media.
The financial and economic affairs committee unanimously recommended approval in principle of amendments to Law No 35 of 2012 on Consumer Protection.
Committee chairman MP Ahmed Al Salloom said the changes reflect ‘market realities that have evolved significantly over the past decade’ and give authorities the legal tools needed to act swiftly and fairly.
“This law closes gaps that allowed some practices to slip through grey areas – particularly in promotions, delivery commitments and contract terms,” he said. “The objective is simple: protect the consumer and create a disciplined, transparent marketplace.”
A key amendment updates the definition of the ‘competent administrative authority’ to include any government body responsible for consumer protection in a specific sector, not just entities outside the supervising ministry. This allows sector regulators to directly enforce consumer rules within their fields.
For the first time, promotional campaigns, discount sales and clearance sales will require licences issued under controls approved by the Cabinet, with set fee structures.
According to the proposal, the move comes after repeated complaints about misleading offers, unclear pricing before discounts and abuse of ‘clearance’ sales.
“Consumers must know that a discount is genuine, not marketing manipulation,” he said. “This amendment brings order and credibility to promotions in the market.”
A new clause explicitly obliges suppliers to deliver goods or provide services exactly as agreed with consumers – a response to one of the most common sources of complaints received by authorities.
“Failure to deliver on time or as agreed is no longer a minor dispute. It is now a clear legal breach,” Mr Al Salloom said.
“The goal is deterrence through visibility and speed. A violator should feel the consequence immediately, not years later.”
Businesses retain the right to appeal first to the minister and then to the courts.
A new Article (11 bis) empowers the authority to review – and pre-approve – contracts, warranties and invoices used by suppliers to ensure they comply with legal standards. Fees may be charged for this service.
“This prevents unfair terms from reaching consumers in the first place,” he noted.
Amendments also update court powers to allow publication of convictions in licensed media outlets, replacing the old requirement to publish in two newspapers.
The Industry and Commerce Ministry, the Bahrain Businessmen’s Association and the Bahrain SMEs Development Society all supported the draft, saying it aligns Bahrain with modern legislative practice and strengthens market confidence.
The legislative and legal affairs committee confirmed the draft is constitutionally sound.
“This is not an anti-business law,” Mr Al Salloom stressed. “It is a pro-fairness law. A disciplined market protects serious traders as much as it protects consumers.”
mohammed@gdnmedia.bh
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