Dubai closes 3 car rental firms, imposes Dh10,000 fine for violations

Asma Ahmed - | UAE

The Department of Economy and Tourism in Dubai has taken strict measures against car rental companies found to be in violation of consumer protection laws, resulting in the closure of three firms during the 2023–24 period. Ahmed Ali Mousa, the director of consumer protection at the department, outlined the enforcement actions, highlighting fines starting at Dh10,000 for violations and escalating penalties for repeat offenses. In cases of repeated violations, the department swiftly closed down the offending companies' offices to ensure compliance.

Recently, the Dubai Corporation for Consumer Protection and Fair Trade, operating under the Department of Economy and Tourism, issued a directive to all vehicle rental firms mandating the return of customer deposits within 30 days of vehicle return. This initiative aims to safeguard consumer rights and enhance transparency in the car rental sector.

Despite the industry's growth, with a notable 23.7% increase in registered car rental companies reported by the Roads and Transport Authority in the first half of 2022, concerns persist regarding certain practices within the sector. Mousa disclosed that some companies were penalized for excessively charging customers for services such as car washing.

Mousa emphasized the importance of customers ensuring clarity in their contracts with service providers, whether in car rental or other sectors. He urged consumers to thoroughly review contracts and seek assistance from the Department of Economy and Tourism if faced with challenges or discrepancies.

Furthermore, Mousa underscored the department's commitment to combating fraudulent practices, noting that maintaining integrity in business operations is vital for Dubai's reputation and attractiveness to investors. By upholding consumer protection standards, the department aims to foster a conducive environment for business growth and consumer confidence in Dubai.

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Asma Ahmed
Asma Ahmed
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