New product safety rules in Saudi Arabia: Key provisions and impact

On 16 August 2024, the Saudi Standard, Metrology and Quality Organization (SASO) announced a new Product Safety Law. The law is set to come into effect on 14 November 2024, with SASO poised to unveil the Executive Regulations around the same date.

While many products sold in the Kingdom are governed by technical regulations or other sector-specific standards, there was previously no single, overarching law addressing product safety. The new law represents significant step forward in the Kingdom’s effort to enhance safety and compliance enforcement for all products, protect consumers and ensure the Saudi market maintains a world-class reputation for safety.

Key points

Scope: The law applies to all local and imported products traded in the Saudi market except for products regulated by the Saudi Food and Drug Authority (SFDA) (e.g., food, pharmaceuticals and diagnostic devices). Note the law also applies to products sold online. Product Safety

Standards: The manufacture, importation, marketing, circulation or advertisement of unsafe products in the Kingdom is prohibited. The law includes a list of criteria that must be used to evaluate the safety of a product, namely:

• Its characteristics (such as composition and instructions for use, installation and repair);
• Its interaction with other products;
• The manner of presentation of the product, including product description, safety warnings and instructions for use and disposal;
• Risks to customers from using the product; and
• Legitimate expectations of customers related to the use and safety of the product.

Oversight and inspection: The law empowers SASO to appoint inspectors who will have the authority to oversee compliance and conduct periodic inspections. These inspectors have broad authority to enforce safety standards, including the right to enter the facilities of product manufacturers, agents, importers and distributors at any time to conduct inspections and to review and make copies of all relevant documentation, including records, papers, and invoices. Inspectors may also seize products that violate or are suspected of violating the law, retrieve product samples for testing and, if necessary, close the premises where a violation occurs until all non-compliant products have been removed.

Liability: Manufacturers are liable for all defects in products they have placed on the market. However, if the manufacturer’s headquarters are outside the Kingdom, its importer or authorized representative assumes all of the manufacturer’s responsibilities and duties, which will be elaborated further in the Regulations.

Penalties for non-compliance: Violations of the law or the Regulations can result in significant penalties, including warnings, fines of up to ten million Riyals or closure of the offending establishment for up to one year. Individuals responsible for displaying or placing products on the market which can harm the consumer may be imprisoned for up to ten years.
Implications
Product manufacturers and distributors doing business in the Kingdom should closely review the new law and work with their legal advisors to ensure compliance before the effective date. Given the key role of importers, distributors, authorized representatives and commercial agents in the Saudi market, we expect many manufacturers to look to these organizations for support during the transition period before the law takes effect. These parties should coordinate diligently with one another to ensure their products remain compliant.

Key actions

• Carefully review the technical regulations, specifications and standards issued by SASO
• Provide consumers with thorough information on products sold, including instructions and potential risks
• Prepare for potential inspections, ensure records are accessible and be ready to respond promptly to any safety concerns that arise

Authored by: Chadi Hourani, Hadeel Badhris* and Ellen Ray

*Member of ZH Partners – Relationship firm in Saudi Arabia