On 31 August 2020, the President ratified the Consumer Protection Act (Law Number 12/2020), which lays down the rights of consumers of goods and services in the Maldives and prescribes the duties of suppliers as well as standards to be adhered to when supplying goods and services in the Maldives. The Consumer Protection Bill, which was presented to the parliament on 4 December 2019, was passed by the parliament on 18 August 2020.

The Act contains provisions with respect to:

• Conditions required on goods held for sale, including its ownership, quality, and price;
• Rights of consumers of goods, including the right to return goods within a reasonable time frame unless an agreement to the contrary exists and the right to redress or to sue;
• Conditions required on services offered, and rights of consumers of services;
• Duties of suppliers, including non-discrimination, non-refusal to sell except under specified circumstances, display of price, non-imposition of conditions other than price, labelling, issuance of receipts, etc.;
• Safety standards, and responsibilities of suppliers with respect to such standards;
• Prohibition of unfair practices such as misleading or deceptive conduct, false representations, and bait advertising; and
• Prohibition of unfair terms and conditions in agreements, notices and other material.

The Act contains special provisions with respect to businesses conducted via electronic media. Transactions concluded through auctions are exempt from the requirements of the Act.

The Act establishes a Consumer Ombudsman, whose primary responsibility is to establish and maintain administrative measures which enable consumers to obtain redress for violation of the Act by suppliers. The Ombudsman shall be appointed by the President within 6 months from the date of effect of the Act. Complaints must be submitted to the Ombudsman within 6 months of the violation, and decisions of the Ombudsman can be submitted to a court of law.

The Act further grants the Ministry of Economic Development the authority to control the price and quantity of goods being supplied in the Maldives under certain circumstances, as well as the power to monitor and inspect premises of suppliers and order suppliers to recall defective goods.

The Act would come into effect on 28 February 2021 and repeals the old Consumer Protection Act (Law Number 1/96).