Dubai shuts down 3 car rental firms for violating consumer rights

Times can get pretty messy if business owners do not pay heed to the rules and regulations that Dubai states. Recently, Dubai shuts down 3 car rental firms for violating consumer rights leaving residents shocked by this decision. In the years 2023 and 2024, three noted car rental companies were established in Dubai that had faced a sudden closure. This was due to the fact that they have not followed certain consumer protection laws that were set up by the Department of Economy and Tourism in Dubai. This was announced by the Consumer Protection Director - Ahmed Ali Mousa who works in this department.

As per his explanation, Dh10,000/- was set as a fine to these three car rental firms after investigating the violations committed by them. He also warns that the fine can also be doubled on the amount if they repeat the same violation again. It was created by the Government with the sole intention of safeguarding people who are their consumers and also those who reside in Dubai.

Furthermore, he explained that they had closed two rental companies back in 2023 and one in early 2024, because if they find the company repeats the violations – then in certain cases, immediate action is taken.

The Rule to Return Customer Deposits

It was when such an action that residents noticed here, that the real rights of consumers were noticed. Dubai shuts down 3 car rental firms for violating consumer rights after issuing a quick circular for all car rental companies. This circular has stated them to return deposits of the customers who had taken their service. This deposit should be returned within 30 days of the period of returning the vehicle by the consumer. This circular was officially announced and shared at the Dubai Corporation for Consumer Protection and Fair Trade, as the right firms would be present there at the location.

To add to the safety of consumers, The Director emphasized that when they notice car rental companies charging high car wash rates, then these companies will be shortlisted and penalized for the same. Alongside, at the Trade event, he announced that every customer should have a precise and transparent contract with the company or any business they talk to. So, whether it is a service a brand, or a shopping mall, the same fact holds good. If the customer faces problems, they can always contact the Department via the website or the call center. He also mentioned that this action will certainly uplift business and an assured spending feel among customers in Dubai.

Future Scope of Car Rental Business in Dubai

This quick action that people witness as Dubai shuts down 3 car rental firms for violating consumer rights, is a precautionary measure to take care of the consumers at large. The Department of Economy and Tourism has earlier in 2023 issued one circular stating every car rental firm in Dubai needs to abide by the rules of deposit return before getting penalized for the same.

Through an overview report given by the Roads and Transport Authority, it has been noted that the car rental industry in Dubai has grown by about 24 % approximately when compared to 2022 numbers. This is because of an uprise in tourism. More rental companies have started and over 78000 cars have been registered compared to 69000 vehicles in the past period.

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