Lawyers stated that many service contracts in many Arab countries are “compliance contracts” and do not take into account consumer rights, as they are an unequal relationship between a strong party (the service provider) imposing its terms, and a weak one (the consumer), who has to accept these contracts As it is without the right to change or negotiate on it.
They assured, "Emirates Today", that the existence of arbitrary clauses in these contracts is a big problem, as it touches the needs of life, as each of us is related to one or more of these contracts that relate to our daily needs of services, including telecommunications service provider contracts, bank contracts and credit cards. , Real estate rental and sale contracts, and insurance company documents.
They demanded the necessity of the presence of supervisory authorities and representatives of the consumer when writing these contracts, as a proactive step, especially with regard to contracts that affect life services.
For their part, consumers said that these contracts and the terms they contain, usually not in their interest, and they are forced to accept them as they relate to services they can not do without, demanding the presence of their representatives when writing these contracts to defend their rights.
In turn, the Ministry of Economy said that the various supervisory bodies and bodies, such as the Central Bank, the General Authority for Communications Regulation and others, oversee the contracts issued by its affiliated bodies, stressing that the consumer has the right to file complaints to these authorities, in the event he is convinced that the contracts are not fair or constitute unfair for him.
Compliance Contracts
In detail, the consumer, Zeina Malik, said that “the terms of some telecommunications contracts are unfair, and the consumers bear high financial costs without justification,” adding that she “wanted to change one of the telecom packages that she uses, but the company informed her that she had to pay all the bills on all lines that It owns it, including mobile phone bills and home internet, before agreeing to change the package, according to the contract between the operator and the consumer ».
And she explained, "She was unable to change the package until after all the bills were paid, which put her in financial trouble, given that she was carrying large amounts of money during a very short period."
She noted that «consumers may not be interested in reading the details of the contract, but the main problem - in her opinion - is not in the consumer, but in the contract itself, where many contracts are written in a small script and without commas as a single clause».
And it called for changing contracts to become more clear in their reading, and to include specific points that the consumer can easily read.
The consumer, Ali Abdul Karim, said that "the operators' offers represent a problem for him, as he participated in more than one special offer for international calls, but he was surprised by many details and conditions that make his communication limited in certain circumstances, and times he cannot call, and therefore he did not benefit from the offer, When he wanted to withdraw from the offer, he discovered that the contract required him to pay in exchange for the subscription.
Communication contracts
The consumer, Mohamed Mostafa Ezz El-Din, added that “there are clauses in some telecommunications contracts that make them (compliance contracts), and the consumer is forced to agree because there is no alternative”, explaining that “among the clauses related to contracting in relation to the home internet, a clause related to termination of service before A year has passed, when the customer bears large sums that include the value of the complete devices, such as the router and receiver. Noting that “sometimes the value of the devices is estimated with arbitrary estimates and exaggerated numbers in excess of 1000 dirhams, besides bearing a fine of several months, which the Telecommunications Regulatory Authority reduced to one month finally".
He pointed out that «the consumer can not obtain a clearance from his telecommunications operator, except after paying the full price of the devices, and that the consumer has to wait for more than a full month to obtain the certificate in accordance with the contract».
The consumer, Ahmed Al-Nomani, said that «most problems with operators usually come from unclear clauses in contracts, especially when providing new services via mobile phones, and if you try to cancel it is difficult and costly, compared to the simple price of the service, and that when changing the service is accountable The consumer has twice the value, and if you activate a package upgrade, some old terms of service completely disappear from the new service, because the consumer’s rights are not clear in the contract ».
He demanded that the contracts be changed to become more clear in reading, and that they include specific points that the consumer could read.
The consumer, Yasser Ali, indicated that he “contracted with a bank on a credit card at a specific interest rate, but was surprised that the bank changed the rate of return without referring to the customer, while only notifying him of the amendment after its implementation, without the customer having the right to revert to the bank or object, What makes it within the (compliance contracts) ».
The consumer, Imad Ahmed, added that he “got a loan from a bank, and he already paid a large part of the loan, and when he wanted to settle, he discovered that the bank got the full interest rate in the first period of repayment of the loan, and therefore he would not benefit from the early settlement of the loan, Part of the interest will not be dropped on the loan. ”
A trader with one of the airline companies, Masoud Naseer, said that “the requirements (loyalty points) in many air carriers are considered (compliance terms), so the consumer may not benefit from (loyalty points) except after a full year has passed, and they may not be replaced until after a period of time has passed. From the time ».
The consumer, Mohamed Ahmed, emphasized that “outlets are deleted (loyalty points) annually on the grounds that they cannot be carried over to a new year, along with the customer’s agreement to the requirements of these cards.”
Contract properties
For his part, the legal advisor, Youssef Al-Azab, said that “(the compliance contract) is a contract of a different nature from the rest of the contracts, as it has certain characteristics, and (the compliance contract) is known as its arbitrary terms, in the sense that it is a contract that the compliant party cannot discuss its terms, either Accept it completely or reject it, just as these contracts relate to services and goods that are essential to life for consumers, and that the party monopolizing the service or the commodity is the strong party, and that all contracts are written in one format, because it is a form previously prepared by the monopolist of the commodity ».
He added: “One of the basic problems of these contracts is also that they are written before the terms are accepted by the (recipient of the service) and the latter is forced to accept the conditions imposed on him previously. Examples of these contracts are banking transaction agreements, such as a contract to obtain a credit card, or agreements to obtain Communications services, such as the Internet or telephone service.
consumer protection
Al-Azab stressed that "the problem of these contracts lies in how to protect the consumer, in case of prejudice in these contracts", calling for protection to be proactive, before writing contracts and setting their terms, by involving representatives of the consumer.
He pointed out that "many Arab countries suffer from the problem of non-representation of consumer protection societies in what is written in contracts, as well as the lack of proactive control over them or even during their application, but this matter does not apply to all Arab countries," noting that "UAE law He protected the consumer, through the authority that the legislator gave to the judge to amend the terms of the contract or cancel it, if it had (injustice) or infringed on the rights of consumers », pointing out that“ the UAE legislator tried to combat the arbitrary terms of the compliance contract, through the Consumer Protection Law, by making Its legal texts (imperative) may not be violated.
Al-Azab stressed the need to help associations and bodies concerned with consumer rights, the service provider when they make such contracts by providing advice and advice to them to reach out to them before preparing these contracts that are compliant, whose terms are understood to be unilateral, and the consumer (the compliant) ) To him as a result of not letting him down before signing the "compliance contract."
Regulatory authorities
For his part, the legal advisor, Ahmed Jaber, stressed the necessity of the presence of supervisory authorities, and activating their responsibility before writing the “Compliance Contract”, as there must be representatives of the second parties when writing such contracts, which can be represented in consumer protection societies, so as not to Terms and conditions for the exhaustion of the weaker, unrepresented party are established when writing these contracts, and the monitoring role of these contracts must be activated and not changed except with the approval of these bodies, to ensure the rights of individual consumers who are often the second party, especially in relation to contracts that affect Continuous life services, such as electricity, water and communication contracts Transport and others.
He pointed out that «the responsible authorities represented in the Ministry of Economy and Consumer Protection, they must stand by the consumer and intervene to reduce the severity of these conditions, and make them in the interest of the consumer as much as possible, as well as the need for control bodies and representatives of the second party when writing such contracts».
Jaber affirmed that “the one who is settled in jurisprudence and the judiciary is that the contract is the law of the contractors, so it is not permissible to revoke it or amend it except with the agreement of the two parties, or for the reasons stipulated by the law.” The judge may amend these conditions, or exempt the acquiescent party from them (the consumer), citing the contracts of some banks, which may include conditions such as the bank’s right to amend the interest rate whenever he wants, provided that the customer is notified, and an alarm that these conditions are legal if approved by the customer However, if this treatment is marred by the abuse of the right, The judge intervenes to cancel this arbitrariness ».
Submission of services
For her part, lawyer and legal advisor, Shouq Al Katheeri, said that “contracts for many services provided to the public are (compliance contracts), for several reasons, the first of which is that the will of the second party (the consumer) is not a free will in the contract, as it is forced to accept all conditions The company or entity monopolizing the service or the commodity, and secondly, saying that the first party (the service provider) can refuse to enter into the relationship », pointing out that saying that these contracts are based on the principle of compatibility and prior consent by the consumer as he agreed to the service is“ wrong ” Because the commodity or service is monopolized by a party and not others, and it is indispensable to contract it N by the consumer, so extreme importance in his life, including contracts for electricity, water and telecommunications.
She added that «the third reason that contracts for many of the services provided to the public are (compliance contracts), that the second party is subject to severe abuse from the monopolistic companies of the good or service, and the best example of this is the telecommunications companies that cut the service in the event of late payment of bills, And even the calculation of monthly contributions for the period of discontinuation of service, which is something that cannot be said with regard to contracts based on the will and consent of both parties in any way.
Al-Katheeri called for the necessity that the consumer protection agencies represent the weakest party in compliance contracts, which is the consumer, by monitoring these contracts before and after writing them, and in the event of prejudice clauses in the consumer's right, these parties must demand their change, in addition to providing a protection cover for the consumer .
She pointed out that «there are many examples of these contracts, including the conditions for compliance in bank contracts, for example, and what is included in some financing contracts from a clause stating that in the event that the customer fails to pay a payment from the remaining payments of the financial dues, the bank has the right to claim the full value Indebtedness, confirming that this is in compliance with the customer ».
Read contracts
On the other hand, the director of the Consumer Protection Department in the Ministry of Economy, Dr. Hashem Al-Nuaimi, asked consumers to read the contracts before signing them, read carefully, and review them thoroughly, and sign them only if they are in their interest, and they are satisfied with all the provisions therein, while they refrain from signing them if they are There are items that are not in the interest of the consumer.
Al-Naimi explained that “as long as the consumer signs the contract, he bears full responsibility for what is stated in it, and therefore he must abide by the terms of the contract.” He indicated that the contract is a reciprocal relationship between the consumer and the merchant or the owner or service provider, and the consumer is not obligated whatever his position and needs to sign on A contract that is not approved, and that there is no justification for approval by consumers of contracts they are not convinced of.
Al-Naimi pointed out that “supervisory authorities, such as the Central Bank, the General Authority for Communications Regulation and others, oversee the contracts issued by its affiliate bodies,” noting that “the consumer has the full right to submit complaints to these entities, in the event he is convinced that the contracts are not fair or constitute Unjust to him.
Definition of compliance
Compliance contracts are a standard form of contract conclusion, based on the use of a typical contract model, prepared by one of the parties to the relationship individually and presented to the other party, who has no choice but to agree to it, or reject it without changing it, or has the right to It changes the terms contained therein or the terms and conditions it contains.
But in the event that he accepts its conditions, this prevents him from abstaining from her, unless the other party violates his obligations. In this case, he has the right to claim compensation from the other party. For signing the contract by the second party (the consumer), this is considered approval of all the terms of the contract that are only in the interest of the stronger party (the first party or the service provider) alone and not others, and he cannot renounce it, but he has the right to demand that these arbitrary terms be relaxed When did the first party accept it?
Read contracts before signing them
The Chairman of the Emirates Society for Consumer Protection, Mohamed Khalifa bin Uzair Al-Muhairi said, “Some people do not read contracts before signing them, especially when it comes to dealing with banks or other institutions, as they condone careful reading of the terms of the contract well, and to ensure that there are no What causes legal problems for the individual beneficiary in the future, as a result of these contracts, which may be called compliance contracts. ”
Al-Muhairi attributed this to the fact that the beneficiary individuals are often driven by their urgent needs to the provided service, to overlook the reading of the contracts provided by the beneficiaries in a manner that is appropriate and in most cases their interest.
He stressed that it is important for all individuals to read the text of the contract carefully, and understand all the conditions before signing the contract.
And he warned that this contract, with all the terms and accessories it contains, will become a legal binding of the consumer, and the owner of the signature may be subject to legal accountability in some cases, as a result of not being aware of his rights and obligations.
Al-Muhairi stressed that the customer has the right to ask about every clause in the contract, and about every clause that he did not understand or understand, and the entity or company providing the service must make clear to the customer the terms and details of the contract in full transparency.
He emphasized that the supervisory authorities set general conditions or rules that require compliance with them in contracts, but each subsidiary body sets its own conditions or restrictions, indicating that the dispute generally revolves around these restrictions, which are sometimes severe, or impose additional obligations on the beneficiary of the contract.
Models of compliance contracts for goods and services
1- Utility service contracts, such as service delivery contracts, or their cancellation, such as electricity and water.
2- Contracts for telecom companies and their associated service providers, such as the Internet service.
3- Aircraft travel contracts, the traveler has no right to amend the terms and conditions fixed on the air ticket, and he is
Complies with the will of the airline, or the railroad company, submitting to all conditions.
4- Contracts of insurance companies, so that the demand for them is compulsory, such as auto insurance contracts.
5- Purchase and sale contracts that relate to the need for housing, including lease contracts, and sale and purchase contracts
In the real estate sector.
6- Contracts for car maintenance companies that are considered compliance contracts, and subject to the vision of the agent who provides this service.
7- Banking transactions contracts, such as obtaining a loan or a credit card.
- On the consumer
Submit complaints
For regulatory authorities, no
Convinced that the contracts
Not fair or
It is unfair to him.
Presence of representatives of
Consumers at
Writing contracts,
Contributes to defense
About their rights.
Most problems
With two operators
Communication, due
Unclear items
In contracts.