Businesses that mislead customers or fail to deliver on promises could face closures of up to three months and daily fines of up to BD2,000 under sweeping amendments to Bahrain’s consumer protection law, approved unanimously by MPs yesterday.
A key provision allows the minister or a designated official to impose administrative penalties immediately if violations persist after a warning – without waiting for lengthy court action.
Penalties include suspending a business for up to three months (renewable), suspending or cancelling the Commercial Register, and imposing daily fines of up to BD1,000 for a first offence and BD2,000 for repeat violations within three years, capped at BD20,000 per breach. Suspended outlets must display a public notice on their façade, while enforcement decisions can also be published in licensed media.
Crucially, the bill creates a legal framework for promotional campaigns.
Industry and Commerce Minister Abdulla Fakhro confirmed that promotions conducted via social media will fall under the law and that Commercial Register holders will need licences to run them.
“Promotions must be transparent and regulated. Consumers should know a discount is genuine, not marketing manipulation,” he said.
Presenting the case during yesterday’s debate, Mr Fakhro stressed that reforming the law was a top priority after gaps were exposed – particularly in promotional licensing, repeat offences lacking direct financial deterrents, and rapidly changing market and consumer behaviour. “Amending this law is a priority because practical application revealed challenges we must address,” Mr Fakhro told MPs.
“We need tools that are faster, clearer and more effective in protecting consumers.”
He said the draft widens the definition of the ‘competent administrative authority’ to include relevant government bodies across sectors, explicitly obliges suppliers to deliver goods or services as agreed, and grants the ministry flexible powers to order and renew administrative closures, alongside new fines, to curb repeat violations.
The ministry will also be able to offer optional compliance services to businesses – reviewing contracts, warranties and invoices to ensure they contain the required information – and courts will be able to order publication of convictions in licensed media to enhance deterrence and transparency.
Parliament’s financial and economic affairs committee chairman MP Ahmed Al Salloom said the amendments reflect ‘market realities that have evolved significantly over the past decade’.
“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.”
For the first time, discount sales, clearance sales and promotional campaigns will require licences under Cabinet-approved controls and fee structures. This follows complaints about unclear pre-discount pricing and abuse of ‘clearance’ labels.
A new clause makes failure to deliver on time or as agreed a clear legal breach.
“A violator should feel the consequence immediately, not years later,” Mr Al Salloom said. “The goal is deterrence through visibility and speed.”
Businesses retain the right to appeal first to the minister and then to the courts.
Stakeholders including the Industry and Commerce Ministry, the Bahrain Businessmen’s Association and the Bahrain SMEs Development Society backed the draft, while the legislative and legal affairs committee confirmed it 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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