Oman's Consumer Protection Law Cracks Down on Price Gouging During Crises

In Oman, the Consumer Protection Law provides a robust framework to safeguard citizens against exploitative pricing practices, particularly during times of crisis. Dr. Mohammed Ibrahim Al Zadjali, Founding Partner of Mohammed Ibrahim Law Firm, explained in an exclusive interview with Times of Oman that the law empowers the Chairman of the Public Authority for Consumer Protection to enact temporary measures to curb abnormal price inflation, subject to approval from the Board and the Council of Ministers.

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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.

This regulatory intervention is triggered by events such as natural crises, pandemics, or other exceptional market circumstances that lead to significant price surges. The law outlines clear criteria for assessing whether a price increase is abnormal. These include factors like the unavailability of goods, the rate of price hikes, consumer complaints, rising shipping and energy costs, currency exchange rates, and the level of market competition or monopoly.

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The law authorises the Chairman of the Authority to take temporary procedures to curtail abnormal inflation.

Furthermore, the Omani law strictly prohibits suppliers from charging prices higher than those previously advertised. It explicitly bans price increases during emergencies or exceptional situations. Non-compliance carries severe penalties, ranging from three months to three years of imprisonment and fines between OMR 2,000 and OMR 50,000. Administrative fines and daily penalties for continuing violations are also stipulated. These stringent measures underscore Oman's commitment to protecting consumers from market abuse and ensuring fair pricing, especially when vulnerable populations are most at risk.

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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.