General

Ministry of Commerce and Industry announces setting the maximum e-marketing and products delivery charges

The Ministry of Commerce and Industry announced the decision of the Committee Tasked with Determining Maximum Prices and Profit Ratios No (3) of 2020 to set the maximum charges for e-marketing and products delivery services.

The issuance of this decision falls in line with the Ministry’s keenness to crack down on the unjustified rise in e-marketing and products delivery charges, deter monopolistic practices and commercial fraud, and ensure the consumer’s right to obtain these services at affordable prices.

The decision defines the concepts to which the provisions apply. The consumer is identified as any party that obtains goods or services, either for free or for a fee, in order to meet his own personal needs, those of others, or any individual with whom he is doing business or otherwise contracted to.

The decision identifies the supplier as the party that provides marketing and delivery services using technology or electronic systems and applications. Marketing and delivery platforms, however, are defined as those companies and commercial institutions involved in the marketing and delivery of products using technology systems and applications.

The decision identified service charges as the percentages, commissions, or sums that are collected by product dealers in markets in line with those signed contracts.

The target market is defined as the marketing and product delivery market that employs technology systems and applications.

The decision outlined the maximum service charges to be imposed by marketing and delivery platforms on the supplier and consumer to market or deliver their products according to the following type of services:

  • The maximum service price is 19% of the order value imposed by marketing and delivery platforms on the supplier when it comes to marketing and delivery services.
  • The maximum service price is 10% of the order value imposed by marketing and delivery platforms on the supplier when it comes to marketing services only.

The decision also stipulated that the maximum delivery charge for consumers is QR10 for delivery services only.

According to the decision, marketing and delivery platforms must maintain the percentages and sums collected from suppliers and consumers prior to the date which appears on the notification letters sent to them by the Ministry’s Competition Protection and Anti-Monopolistic Practices Committee, corresponding to Wednesday, 22/5/2019, in order to reconcile their status should these percentages be less than the maximum percentage referred to in Article 3.

The decision of the Committee Tasked with Determining Maximum Prices and Profit Ratios No (3) of 2020 outlined the following conditions:

  • Marketing and delivery platforms are prohibited from imposing discriminatory conditions, refusing to deal with or placing restrictions upon the supplier, or imposing any other percentages or sums on suppliers and consumers through any means or under any label in order to collect additional charges in violation of the provisions of this decision.
  • Marketing and delivery platforms shall not increase charges for the services outlined in the decision before obtaining the prior approval of the committee.
  • The supplier should give priority to dealing with marketing and delivery platforms affiliated with national companies and businesses operating in the field of product marketing and delivery.
  • Marketing and delivery platforms subject to the provisions of this decision must also reconcile their status accordingly and commit to adding an appendix of the service charges for valid contracts in accordance with the provisions of this decision.

Marketing and delivery platforms are compelled to provide copies of the valid contracts for which an appendix of service charges and price lists by the contracted supplier was added within a month of the decision’s issuance. Competent authorities were also compelled to implement the decision and abide by the decision from the date of its issuance. The decision will be published in the Official Gazette.

The Ministry will also intensify its inspection campaigns to ensure the compliance of suppliers and merchants with the decision of the Committee Tasked with Determining Maximum Prices and Profit Ratios No. (3) of 2020, in order to determine e-marketing and product delivery charges, to ensure the compliance of those concerned with their stipulated obligations, and to crack down on any violations in this regard.

Source: Minister of Commerce and Industry

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