statute of consumer protection association - nazaha · pdf filestatute of consumer protection...

Statute ofConsumer Protection Association

Translation of Saudi Laws

Council of Ministers Resolution No. (3), 12 Muharram 1429H / 21 January 2008

First Edition 2010

Kingdom of Saudi ArabiaBureau of Experts at the Council of Ministers

Official Translation Department

el ozara Eng.indd 1 7/12/10 10:50:45 AM

This translation is providedfor guidance. The governing

text is the Arabic text.


This translation is providedfor guidance. The governing

text is the Arabic text.

Resolution No. 3

Date: 12/1/1429H

The Council of Ministers, upon perusal of the file received pursuant to the letter of His Excellency Head of the Bureau of Experts at the Council of Ministers No. 3977 dated 30/12/1428H, attached thereto the Draft Statute of Consumer Protection Association, drafted pursuant to Clause (Fifth) of the Council of Ministers Resolution No. 202 dated 17/6/1428H, including «the Bureau of Experts, with the participation of relevant agencies, has drafted a statute for (Consumer Protection Association) in accordance with the principles provided for in the clauses of this Resolution, included necessary amendments on applicable laws and rules and promulgated new regulations for implementing the aforementioned, in accordance with necessary legal procedures».And upon perusal of Minutes No. 512 dated 30/12/1428H drafted at the Bureau of Experts.And upon perusal of the recommendation made by the General Committee of the Council of Ministers No.1 dated 12/1/1429H.

Resolves as follows:1- The Statute of Consumer Protection Association as per the attached form

shall be approved.2- As an exception to the provision of Article 10 of this Statute, the first

meeting of the General Assembly shall comprise the persons who submitted their applications to the Ministry of Commerce and Industry for the establishment of a consumer protection association and every applicant who satisfies membership conditions stipulated in Article 6 of the Statute in question.

3- The Ministry of Commerce and Industry shall select at least five persons from among the applicants to verify that the requirements are met by those who submitted applications to establish said association and by applicants thereto. Said persons shall also prepare and call for the first meeting of the General Assembly. Upon holding of said meeting, duties of this Committee shall end. Such meeting shall be within 30 days from effectiveness of the Statute. Agenda of the meeting shall cover election of Executive Board Members of the Association including Chairman and Vice Chairman.

4- Bodies concerned shall offer necessary facilities to enable Consumer Protection Association assume its duties.

(Signed)

Prime Minister


Statute ofConsumer Protection

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Article 1: Definitions

The following words and phrases shall have the meanings assigned to them, unless the context requires otherwise:

Association: Consumer Protection Association.

Consumer: Any natural or corporate person acquiring a commodity or service for a charge or free in order to fulfill a personal need or the needs of others.

Commodity: Any manufactured, plant, animal or processed product, including raw material and components of a product.

Service: Any service rendered by any party to a consumer, whether for a charge or free.

Board: Executive Board of the Association.

Article 2: Association’s Legal Status

The Consumer Protection Association is a private independent corporate person.

Article 3: Association’s Headquarters

The Association’s headquarters shall be in the City of Riyadh. The Association may establish branches and offices in the Kingdom.




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Article 4: Association’s Objectives

The Association aims at protecting the consumer’s interests; safeguarding and defending his rights; representing him before public and private bodies; protecting him against all kinds of adulteration, counterfeit, fraud, deceit, falsification and exaggerated prices; and promote consumer awareness and rationalized consumption.

Article 5: Association’s Powers

In order to achieve its objectives, the Association may undertake the following:

1- Receive consumer complaints regarding fraud, adulteration, falsification, tampering with commodities or services and exaggerated prices thereof and misleading advertisements in newspapers and other media; report the same to the competent authorities and follow up thereon.

2- Support government agencies concerned in their consumer protection efforts and notify such agencies of violations of consumers’ rights and interests.

3- Conduct studies and research and publish the findings thereof; hold conferences, symposia and courses and organize exhibitions relating to consumer protection, in accordance with laws and directives.

4- Educate consumers on rationalized consumption and provide them with necessary information and advice.



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5- Propose consumer protection laws and amendments thereon.

6- Represent consumers in domestic and international committees and bodies concerned with consumer protection and cooperate with them, and participate in their activities, in accordance with applicable procedures.

Article 6: Membership

Membership of the Association shall be as follows:

1- Active Member: A member who joins the Association after establishment date, upon the Board’s approval of the application, and meets the following requirements:

a) To be a citizen concerned with consumer protection.

b) To have completed eighteen years of age.

c) To be of full legal capacity.

d) To be a person of integrity and moderation and not convicted for a crime impinging on honor, , unless rehabilitated.

e) To pay the set annual membership fee.




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Such member may attend the General Assembly meetings and vote on its decisions. He may also nominate himself for Board’s membership, after the lapse of one year from the date of his joining the Association.

2- Affiliate Member: A membership applicant whose application is approved by the Board and who meets active membership requirements, except age.

Such member may attend the General Assembly meetings but may not have the right to vote or be nominated for Board membership.

3- Honorary Member: A member granted membership in recognition for his valuable material or moral services that help the Association achieve its objectives.

Such member may attend the General Assembly meetings and participate in the discussions but may not have the right to vote or be nominated for Board membership.

Article 7: Members’ Obligations

Association members shall adhere to the following:

1- Satisfy membership obligations and perform duties provided for in this Statute and the Association’s bylaws.

2- Comply with resolutions of the General Assembly and the Board.



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3- Notify the Association, in writing, of any change of address.

4- Refrain from any activity conflicting with the Association’s objectives.

Article 8: Loss of Membership

1- A member shall lose Association membership in the following cases:

a) Death.

b) Termination of membership pursuant to a resolution by the General Assembly.

c) Submission of a written resignation.

d) Ceasing to satisfy any of the membership requirements stated in Article 6 above.

e) Willfully causing serious material or moral damage to the Association.

f) Failure to pay subscription fees for a period exceeding six months from the beginning of the Association’s fiscal year, after a written notification sent to his address with the Association.

2- Except for cases (a) and (b), loss of membership shall be pursuant to a resolution by the Board.




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3- The Board may reinstate membership lost due to non-payment of the annual subscription fees, upon payment of the due amount.

4- A member, the heirs thereof or members who lose membership, may not, for any reason, re-claim subscription fees, donations or gifts given to the Association, whether monetary or in kind.

Article 9: Structure of the Association

The Association shall consist of the following:

1- General Assembly.

2- Executive Board.

3- Executive Body.

4- Standing committees formed by the General Assembly or the Executive Board. The resolution forming each of such committee shall specify the powers of the committee.

Article 10: General Assembly

The General Assembly shall comprise all active members who have satisfied their obligations towards the Association.



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Article 11: Powers of the General Assembly

The General Assembly shall be the highest authority in the Association and shall have the following powers and duties:

1- Setting the general policies for the operation of the Association.

2- Approval of the Association’s bylaws.

3- Election of members and substitute members of the Board and renewal of their membership.

4- Election of the Chairman and Vice-Chairman of the Association and renewal thereof.

5- Approval of the annual report.

6- Designation of an auditor and determination of his fees.

7- Approval of the auditor’s report.

8- Approval of the annual budget.

9- Setting and revising annual membership fees.

10- Review of investment options of the Association’s funds and proposal of channels thereof.

11- Approval of the establishment of branches or offices for the Association.




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12- Proposal of the dissolution of the Association for any of the reasons provided for in paragraph 1 of Article 20 of this Statute and submission of said proposal to the Council of Ministers for approval.

Article 12: Meetings of the General Assembly

1- The General Assembly shall convene in its headquarters once a year. It may hold extraordinary meetings when necessary, upon a call by the Board or the request of one third of the members.

2- A General Assembly meeting shall be valid if attended by majority of members. Attendance by proxy shall not be valid. The Chairman or Vice-Chairman of the Association shall chair General Assembly meetings. In the absence of a quorum, the meeting shall be adjourned to another date not earlier than seven days and no later than fifteen days from the date of the first meeting. The latter meeting shall be deemed valid if attended by not less than 25% of active members. Resolutions shall be passed by majority of attending votes, and in case of a tie, the Chairman shall have the casting vote.

Article 13: Executive Board

1- The Executive Board shall consist of nine active members, including the Chairman and Vice-Chairman of the Association, elected by the General Assembly through a secret ballot.



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2- The Board term of membership shall be three years renewable for one term pursuant to a decision by the General Assembly. If a vacancy occurs for any reason, a substitute member shall fill said vacancy in accordance with the bylaws.

Article 14: Powers of the Board

The Board shall manage the affairs of the Association to achieve the objectives set in this Statute and shall particularly undertake the following:

1- Draft the bylaws.

2- Recommend approval of the final accounts on the basis of the auditor’s report.

3- Review the annual budget, revenues and expenditures account and any other statements related to the fiscal status of the Association.

4- Accept gifts, donations, wills, endowments and grants.

5- Manage the Association’s properties and funds and designate banks where said funds to be deposited.

6- Form standing committees.

7- Oversee and follow up implementation of the General Assembly resolutions.




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8- Call for General Assembly meetings, and propose the agenda thereof.

9- Propose establishment of branches and offices for the Association.

10- decide on membership applications.

11- Any other task assigned to it by the General Assembly.

12- The Board may delegate some of its powers to the Chairman or Vice-Chairman.

Article 15: Meetings of the Board

1- The Board shall hold a meeting every other month and may hold extraordinary meetings when necessary upon a call by the Chairman or the request of one third of members.

2- A Board meeting shall be deemed valid if attended by majority of members, and attendance by proxy shall not be valid. Resolutions shall be passed by majority of attending votes, and in case of a tie, the Chairman shall have the casting vote.

Article 16: Administrative Body

1- The Association shall have a full-time Chairman and Vice-Chairman elected by the General Assembly for



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three years renewable for one term, provided that the Minister of Commerce and Industry approves their appointment. The Chairman shall be the executive in charge of the Association in accordance with this Statute and the Board’s resolutions, and shall in particular undertake the following:

a) Manage the Association’s affairs.

b) Chair meetings of the General Assembly and the Board.

c) Represent the Association before government and judicial authorities, international organizations and other institutions and bodies.

d) Sign Association’s resolutions and contracts.

e) Follow up implementation of the General Assembly resolutions.

f) Prepare reports on the implementation of the Association’s plans, and submit such reports to the Board.

g) Oversee the preparation of the Association’s draft budget, final account and annual report.

h) Form ad hoc committees.

The Vice Chairman shall assume the powers delegated to him by the Chairman and perform the Chairman’s duties in his absence.




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2- The Association shall have a full-fledged executive body comprising all necessary departments, workforce and facilities.

Article 17: Committees of the Association

The Board shall form the following committees:

1- Monitoring and Follow-up Committee: To be in charge of monitoring and following up matters related to realizing the Association’s objectives, receiving notifications and complaints and investigating alleged consumer-related violations.

2- Studies and Research Committee: To be in charge of conducting studies and research and providing consultations relating to consumer protection.

3- Awareness and Publication Committee: To be in charge of promoting consumer awareness through symposia and conferences, and publication of information relating to consumer protection, in accordance with legal procedures.

The Board may form other committees as necessary.



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Article 18: Revenues of the Association

1- The Association’s revenues are as follows:

a) Government subsidies.

b) Revenues from publications, symposia, exhibitions and courses.

c) Returns on investment of the Association’s movable and immovable assets.

d) Membership fees.

e) Gifts, donations, wills, endowments and grants.

f) Ten percent (10%) of attestation fees of commercial documents charged by Chambers of Commerce and Industry in each province.

g) Other revenues proposed by the Board and approved by the General Assembly.

2- The Association shall deposit its cash funds, under its name, with a local bank in the Kingdom. Withdrawals from said funds shall only be made with the signatures of two Association officials designated in the bylaws.




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Article 19: Fiscal year

The Association’s fiscal year shall begin on the thirty first of December of every year and end on the thirtieth of December of the following year. As an exception, the first fiscal year shall begin from the date this Statute enters into force.

Article 20: Dissolution of the Association

1- The Association may be dissolved if it deviates from its objectives, commits a grave violation of the provisions of this Statute or violates public order, morals or observed traditions.

2- If the Association is dissolved, all its funds and properties, upon liquidation, shall devolve upon the nearest charity or humanitarian organization in the Kingdom with objectives most consistent with those of the Association.

Article 21

This Statute shall be published in the Official Gazette and shall come into force thirty days from the date of its publication.


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