Legal Risks for Online Businesses After 2026
The issuance of Decree-Law No. 10 of 2026 means the legal environment has changed. What used to pass without issues may now become a real legal risk. This article identifies the key risks and explains how to avoid them.
Risk Matrix
| Risk | Likelihood | Impact | Risk Level |
|---|---|---|---|
| Operating without commercial registration | High | High | 🔴 Critical |
| No return policy | High | Medium | 🟠 High |
| Misleading advertisements | Medium | High | 🟠 High |
| Not protecting customer data | Medium | High | 🟠 High |
| Undisclosed sponsored content | High | Medium | 🟠 High |
| Inaccurate product descriptions | High | Low | 🟡 Medium |
| Not issuing invoices | Medium | Medium | 🟡 Medium |
| No terms and conditions | Medium | Low | 🟡 Medium |
Critical Risks — Address Immediately
1. 🔴 Operating Without Commercial Registration
Problem: Many social media sellers conduct regular commercial activity without commercial registration.
Risk: Direct violation of commercial law and the new law. Can lead to:
- Financial penalties
- Business closure
- Legal accountability
Solution: Register your business immediately. In Kuwait, getting a commercial registration is now easier with MOCI's electronic services.
2. 🟠 Misleading Advertisements
Problem: Exaggerated claims, photos that don't represent the product, fake discounts.
Risk: The new law tightens advertising truthfulness requirements. Consequences:
- Consumer complaints
- MOCI action
- Reputation damage
Solution: Review all your ads. Ask yourself: "Is every word in this ad true and can I prove it?"
High Risks — Address This Month
3. 🟠 No Return Policy
Problem: Many sellers don't display a clear return policy.
Risk:
- Customer disputes without reference point
- MOCI complaints
- Bad reputation affecting sales
Solution: Create a written return policy and publish it in your store.
4. 🟠 Not Protecting Customer Data
Problem: Storing customer data (phone numbers, addresses, payment info) insecurely or sharing it without permission.
Risk:
- Customer privacy violation
- Loss of trust
- Legal accountability
Solution:
- Don't store payment data — leave that to the payment gateway
- Use strong passwords
- Don't share customer lists with third parties
5. 🟠 Undisclosed Sponsored Content
Problem: Influencers and brands not disclosing sponsored content.
Risk: The new law is expected to specifically address this:
- Fines for both influencer and brand
- Content removal
- Platform bans
Solution: Clear disclosure policy — all paid content labeled as "Ad."
Medium Risks — Plan to Address
6. 🟡 Inaccurate Product Descriptions
Solution: Review all listings. Update descriptions to be accurate and matching.
7. 🟡 Not Issuing Invoices
Solution: Use a simple electronic invoicing system — even a free app.
8. 🟡 No Terms and Conditions
Solution: Create a basic terms page covering: usage terms, sales terms, governing law.
How to Reduce Risk — The Plan
| Week | Action |
|---|---|
| 1 | Resolve critical risks (commercial registration, misleading ads) |
| 2 | Resolve high risks (return policy, data protection, ad disclosure) |
| 3-4 | Resolve medium risks (descriptions, invoices, terms) |
| Ongoing | Follow legal updates and reassess every 3 months |
When Do You Need a Lawyer?
| Situation | Need a Lawyer? |
|---|---|
| Starting a new business | Recommended |
| Receiving a notice from MOCI | ✅ Yes |
| Customer dispute escalating to legal threats | ✅ Yes |
| Drafting contracts with suppliers or influencers | Recommended |
| Reviewing internal policies | Optional — you can start yourself |
| Understanding your general obligations | You can start with these articles |
Legal note: This article is for educational purposes and does not replace specialized legal advice. Since the digital commerce framework is still new, it's important to follow official developments.
Also read: Compliance Checklist | What Businesses Must Do
