Kuwait has taken a landmark step forward in establishing a comprehensive legal framework for its rapidly expanding digital commerce sector. On 1 March 2026, Decree-Law No. 10 of 2026 (the “Law“) was published in the Kuwait Official Gazette, introducing a sweeping regulatory regime that touches virtually every aspect of online commerce-from platform registration and consumer protection to influencer marketing and blockchain technology.
For businesses operating in or eyeing entry into Kuwait’s digital marketplace, this legislation represents both a challenge and an opportunity: a challenge to align operations with rigorous new compliance standards, and an opportunity to build consumer trust in an increasingly regulated and transparent market.
The Law forms a cornerstone of Kuwait’s Vision 2035 strategy, which aims to accelerate digital transformation and sustainable economic development. With e-commerce penetration rising sharply across the Gulf region, Kuwait has joined its GCC neighbors in codifying rules that balance innovation incentives with robust consumer safeguards.
Who Does This Law Apply To?
The Law, under Article 2, regulates the digital commerce sector within Kuwait. It covers any activity-whether conducted fully or partially through electronic means-that involves dealing in goods, providing services, advertising, or exchanging data. Crucially, this includes social media platforms used for commercial purposes. Article 3 mandates that all persons must register with the Ministry of Commerce and Industry before engaging in any digital commerce activity-a requirement that will have significant implications for the thousands of small and medium enterprises currently operating informally through social media channels.
What Are Providers Required to Disclose?
Transparency lies at the heart of the new regulatory architecture. Article 10 requires providers to display prominently on their platforms: their name or trade name, registration number, and comprehensive contact information (including email, phone numbers, and website links).
Article 11 mandates clear and accessible contract terms covering: (i) product or service descriptions; (ii) final pricing inclusive of any additional fees such as delivery charges; (iii) accepted payment methods; (iv) delivery arrangements and execution timelines; (v) validity periods for promotional offers or discounted prices; and (vi) return and exchange policies.
Once a transaction is concluded, Article 12 requires providers to issue an electronic invoice in Arabic (with the option to include additional languages). The invoice must specify the price, all fees and total amount, delivery date and location, and payment method used. For disputes, Article 13 requires providers to establish and maintain transparent and effective complaints mechanisms, with records retained for a minimum of six months.
Consumer Rights: The 14-Day Withdrawal Window
Consumer protection provisions are among the Law’s most consequential features. Article 17 grants consumers a 14-day cooling-off period from receipt of any product, during which they may withdraw from the contract, return the product, and obtain a full refund via the original payment method (or another agreed method)-provided the product is returned in its original condition and at no additional cost to the consumer.
However, for precious metals and high-value items-to be specified by subsequent ministerial decision-this withdrawal window contracts dramatically to just 24 hours from receipt. Businesses dealing in luxury goods, jewelry, or precious commodities should monitor these ministerial determinations closely.
Article 17 also carves out several exceptions where the right of return does not apply: products already used by the consumer; items manufactured to the consumer’s specifications; perishable goods or products that expire within a short period; services related to accommodation, transport, food, or entertainment provided on a specific date or period; software or digital products where download has been completed; digital or electronic cards where the activation code has been delivered (regardless of whether used); and other cases to be specified by implementing regulations.
Advertising and Influencer Rules: A New Era of Accountability
The Law introduces stringent requirements for digital advertising. Article 18 mandates that all advertisements include the provider’s name and product/service price, a clear and accurate description, and contact details (with an exception for advertisements through registered social media accounts linking to the provider’s official profile containing all required information).
Article 19 prohibits advertisements containing false, misleading, or deceptive statements; content contrary to public order or morals; counterfeit trademarks or imagery used without legal authorization; or any language that could directly or indirectly mislead consumers.
Influencer marketing receives particularly detailed treatment under Article 23. Providers utilizing influencers must: retain all records, data, and agreements relating to influencers for a minimum of five years and produce them to the Ministry upon request; process all influencer payments through verifiable payment methods compliant with anti-money laundering standards and Central Bank regulations; and refrain from engaging influencers in promotional campaigns involving consumer deception or financial regulation evasion.
Emerging Technologies and the Regulatory Sandbox
The Law takes a notably forward-looking approach to emerging technologies. Article 30 permits providers to utilize modern technologies such as blockchain and smart contracts in managing consumer transactions, subject to rules to be established in the implementing regulations.
Article 31 introduces a “regulatory sandbox” mechanism. Entrepreneurs wishing to launch innovative products, services, or business models not covered by existing legislation may apply to the Ministry for permission to operate within a supervised experimental environment. The Ministry may establish a production-oriented testing environment with limited scope, allowing commercial operation under Ministry supervision while ensuring consumer protection, cybersecurity, and financial transaction integrity. Successful innovations may subsequently be recommended for integration into Kuwait’s formal legal framework.
Cybersecurity and Payments
Cybersecurity obligations receive explicit attention under Article 32, which requires providers to apply cybersecurity standards in force within Kuwait (as established by the National Cybersecurity Centre) and to periodically update their data protection systems to address emerging cyber threats.
On the payments front, Article 28 mandates that providers offer electronic payment options that are simple, transparent, and non-discriminatory, in accordance with Central Bank of Kuwait directives. Critically, providers may only engage payment service providers licensed by the Central Bank-a requirement designed to ensure the integrity and security of consumer financial transactions.
Penalties: Real Consequences for Non-Compliance
The Law carries meaningful enforcement mechanisms. Article 39 prescribes penalties of imprisonment for up to one year and/or fines ranging from KD 1,000 to KD 10,000 for violations of key provisions-including Articles 3, 15, 23, 24, 25, 26, 28, 31, and 32. The same penalties apply to those who submit false data or forged documents for registration, offer unlawful or public-order-violating products or services, or fail to comply with Dispute Settlement Committee decisions.
Repeat offenders face doubled penalties, and under Article 40, courts may order confiscation of tools used in commission of offenses and any proceeds derived therefrom.
Notably, Article 41 extends liability to the person responsible for the actual management of a corporate entity if they had knowledge of the violation and their failure to fulfill their duties contributed to its occurrence, or if they derived personal benefit. The corporate entity itself remains jointly liable for any financial penalties and compensation.
Article 42 permits settlement of criminal offenses under the Law prior to final judgment, pursuant to a decision by the Ministry Undersecretary-offering a potential off-ramp for businesses that identify and address compliance failures promptly.
What Happens Next?
Decree-Law No. 10 of 2026 marks a transformational moment for digital commerce in Kuwait. Article 44 requires the Minister to issue the implementing regulations within one year from the date of publication in the Official Gazette. Under Article 45, the Law will take effect one month after the implementing regulations are published-meaning the precise enforcement timeline remains to be determined.
Businesses should not wait for the implementing regulations to begin compliance preparations. The Law’s core obligations-registration requirements, transparency disclosures, consumer return policies, advertising compliance, influencer documentation, and cybersecurity measures-are already clearly articulated.
Companies currently operating digital platforms in Kuwait, or planning market entry, should conduct comprehensive gap analyses against the new requirements and begin developing the necessary policies, documentation, and technical infrastructure.
For businesses utilizing influencers, the five-year record-keeping requirements and payment traceability mandates will require careful review of existing commercial arrangements. Those interested in emerging technologies such as blockchain or smart contracts should monitor the regulatory sandbox provisions closely.
Importantly, given the prevalence of social media-driven commerce in Kuwait, businesses selling through platforms like Instagram, Snapchat, TikTok, and X (formerly Twitter) must pay particular attention to the registration and advertising requirements. Informal commercial activity through unregistered social media accounts will no longer be permissible.
Given the penalties for non-compliance-including potential imprisonment and substantial fines-early and thorough preparation is not merely advisable; it is essential.
Authors: Asad Ahmad, Partner and Liana Rashid, Trainee Lawyer