
Under Oman’s Consumer Protection Law, where a natural crisis, pandemic, exceptional circumstances, or extraordinarily special situations in the market emerge and result in abnormal inflation in prices, regulatory intervention may be triggered.
In an exclusive interview with Times of Oman, Dr. Mohammed Ibrahim Al Zadjali, Founding Partner of Mohammed Ibrahim Law Firm, explains that “the Chairman of the Board of the Public Authority for Consumer Protection shall, after approval of the Board and the Council of Ministers, take temporary measures to stop, reduce, or control a continuous increase in prices.
“Such measures may be extended for a similar period if the exceptional circumstances continue.” “The law authorises the Chairman of the Authority to take temporary procedures to curtail abnormal inflation.
Clear criteria
“The Executive Regulation of the law sets out clear criteria for the Chairman to assess whether a price increase is abnormal, including the unavailability of a good, the rate of price increase, consumer complaints to the Authority, shipping and transport costs, energy prices, the exchange rate of foreign currency at the time of import, and the extent of competition or monopoly in the market,” he said.
He further stated that “the law strictly prohibits suppliers from charging a price higher than its previously advertised price. The Executive Regulation explicitly bans increasing prices upon the emergence of a crisis, pandemic, exceptional circumstances, or an extraordinary special situation in the market.”
“The law imposes strict penalties for non-compliance. A supplier who violates these price related provisions, including charging a price higher than its previously advertised price, may face imprisonment from 03 months to 03 years and a fine between OMR 2,000 and OMR 50,000, or either of these penalties. In addition, the law also provides for administrative fines for certain violations, which may reach up to OMR 1,000, doubled for repetition, and in the case of continuing violations, a daily fine of up to OMR 100 may be imposed until the total reaches OMR 2,000,” he said.
“These strict rules ensure that suppliers cannot exploit emergencies to unjustifiably raise prices and that consumers are fully protected from market abuse,” he concluded.
(Mohammed Ibrahim Law Firm (info@mohammedibrahim.net), (+968 244 87 600) was established on 14th December 2006 and is serving clients through its offices in Muscat and Sohar, as well as operating on a request basis in other areas. It offers legal representation across a wide range of practice areas that include Labour Law, Corporate, Commercial, Contracts, Banking and Finance, International Trade, Foreign Investment, Insurance, Maritime Law, Construction and Engineering Contracts, International Arbitration, Intellectual Property and more).