Minimum Dh10,000 fine: Dubai shuts down 3 car rental firms for violating consumer rights

Dubai car rental violations

In recent developments, three car rental companies in Dubai faced closure for contravening consumer protection laws, according to the Department of Economy and Tourism. The closures, occurring between 2023 and 2024, underscore the authorities' commitment to upholding consumer rights in the emirate.

According to Ahmed Ali Mousa, director of consumer protection at the Department of Economy and Tourism, fines for violations range from a minimum of Dh10,000, with subsequent fines doubling for repeated infractions. Notably, if violations persist, the department swiftly closes the offending companies' offices to prevent further transgressions.

In response to growing concerns, the Dubai Corporation for Consumer Protection and Fair Trade, operating under the Department of Economy and Tourism, issued a circular mandating vehicle rental firms to refund customer deposits within 30 days of vehicle return. This measure aims to ensure timely and fair treatment of consumers in the car rental sector.

Despite the industry's growth, with a reported 23.7% increase in registered companies in the first half of 2022 compared to the previous year, challenges persist. Mousa disclosed that some car rental firms have been penalized for excessively charging for car washing services, highlighting the need for transparency and fairness in pricing practices.

To safeguard their interests, consumers are urged to thoroughly review contracts before engaging with service providers. Mousa emphasized the importance of understanding contractual terms and encouraged consumers to seek assistance from the Department of Economy and Tourism in case of disputes or challenges.

In aligning with Dubai's vision of fostering a business-friendly environment, the Department of Economy and Tourism remains vigilant against fraudulent practices. Upholding consumer rights not only ensures fair treatment but also enhances Dubai's appeal as a global business hub, attracting investment and promoting economic growth.

Overall, these measures underscore Dubai's commitment to protecting consumer interests and maintaining integrity in its commercial landscape. By enforcing stringent regulations and offering recourse for consumers, the emirate reinforces its reputation as a destination conducive to business excellence and consumer trust.