As the UAE’s digital economy continues its rapid expansion, businesses increasingly rely on online platforms—websites, apps, digital marketplaces—to engage with customers. In such ever-evolving digital era, Terms & Conditions (“T&Cs”) are not just administrative text tucked away in a footer. They are legally binding agreements that define the relationship between a business and its users, ensure legal compliance, significantly reduce operational risks, and reinforce consumers’ trust.
Under the UAE’s legislative framework, including the Consumer Protection Law and the Electronic Transactions and Trust Services Law, T&Cs are essential tools for transparency, fairness, and contractual clarity. For any business operating digitally, strong T&Cs are no longer optional. They are fundamental, and here’s why.
- T&Cs as the Contractual Foundation of Online Business
In very simple terms, T&Cs form the contract between the company (with online platform) and its users. In the UAE, where the civil law system interprets ambiguity against the drafting party, precision is especially important to avoid unnecessary legal, operational, and commercial risks.
Hence, to prevent vague T&Cs, one must ensure that they clearly define the rights and obligations of the business and its users, establish service parameters, and set expectations regarding performance, use, and limitations (some of these aspects are discussed in detail below).
2. Mandatory Transparency Obligations
The Consumer Protection Law imposes transparency obligations that directly influence the content of T&Cs. These include disclosures relating to:
- Pricing and Additional Charges
Businesses must clearly state (among others) the pricing mechanisms, any applicable taxes, delivery fees, and any other optional or mandatory add-ons. It is important to note that failure to disclose charges upfront can be deemed misleading exposing businesses to commercial risks.
- Features and Conditions of Goods or Services
T&Cs should accurately describe key features, specifications, and usage conditions of goods or services. These descriptions also help ensure that marketing representations remain aligned with what is contractually offered by the companies.
- Delivery and Performance Timelines
For e-commerce business and digital marketplaces (which are very common in UAE now), it is crucial to ensure clear delivery rules, including estimated timelines, conditions for delays, and user responsibilities (e.g., providing accurate address information). Transparency in these areas prevents claims of unfair practices or misrepresentation.
3. Clear Refund, Exchange, and Cancellation Policies
Articles 10, 12, and 15 of the Consumer Protection law require businesses to disclose fair mechanisms for resolving defects, delays, or service failures. Well-drafted T&Cs must clearly state:
- Conditions under which refunds are provided,
- Procedures for returns or cancellations, and
- Responsibilities in case of defective or non-conforming goods/services.
Without these provisions, businesses risk violating statutory consumer rights. T&Cs must therefore be drafted to balance risk allocation without contravening mandatory protection recognized under the law.
4. Advertising and Performance Representations
Representations made to consumers on websites, apps, or ads become enforceable under Article 17 of the Consumer Protection Law, which mandates that all such representations must be clear and accurate and not misleading. T&Cs must therefore support, not contradict, these representations.
5. Liability Management and Operational Protection
T&Cs provide one of the strongest tools for managing liability of the companies, only if businesses ensure that their T&Cs include:
- Limitations of liability
- Exclusion of liability for user misuse
- Indemnity obligations
- Disclaimers for third-party content
- Suspension or termination rights
These provisions ensure businesses are not held responsible for risks beyond their control and give them operational flexibility to handle misconduct, fraud, or system abuse.
6. Governing Law and Jurisdiction—An Often Overlooked Essential
Online businesses must specify the applicable jurisdiction (UAE onshore courts or an authorized free-zone courts) to prevent conflict-of-law issues. This aligns with both contractual best practice and consumer-protection requirements for clarity.
7. Tailored T&Cs: No “One-Size-Fits-All” Approach
Every business model—e-commerce, SaaS, marketplace, fintech app, subscription service—has different legal and operational risks. Effective T&Cs should reflect:
- The nature of the service
- The customer base
- Industry-specific risks
- Applicable regulatory requirements
Generic templates often fail to meet UAE legal standards and may expose businesses to avoidable liabilities.
Conclusion
Contrary to the common view that T&Cs are merely formalities, they serve as a core legal and operational safeguard defining the business-customer relationship, ensuring legal compliance, and preventing avoidable disputes and liabilities. Therefore, precisely structured T&Cs signal professionalism and transparency; qualities that not only consumers value but also position your business ahead in the UAE’s competitive commercial market.
Disclaimer:
This article is intended for general information purposes only and does not constitute legal advice. Businesses should seek professional legal counsel for guidance tailored to their specific circumstances.
