(MENAFN- The Peninsula) The Ministry of Commerce and Industry (MOCI) has set maximum charges for e-marketing and products delivery to curb the unjustified price hike.
The decision was made by the Committee Tasked with Determining Maximum Prices and Profit Ratios No (3) of 2020, said the Ministry in a release. The issuance of this decision falls in line with the Ministry's keenness to crack down on the unjustified rise in e-marketing and products delivery charges, deter monopolistic practices and commercial fraud, and ensure the consumer's right to obtain these services at affordable prices.
The decision outlined maximum service charges to be imposed by marketing and delivery platforms on the supplier and consumer.
The maximum service price is 19 percent of the order value imposed by marketing and delivery platforms on the supplier when it comes to marketing and delivery services.
The maximum service price is 10 percent of the order value imposed by marketing and delivery platforms on the supplier when it comes to marketing services only.
The decision also stipulated that the maximum delivery charge for consumers is QR10 for delivery services only.
According to the decision, marketing and delivery platforms must maintain the percentages and sums collected from suppliers and consumers prior to the date which appears on the notification letters.
The letters were sent to them by the Ministry's Competition Protection and Anti-Monopolistic Practices Committee, corresponding to May 22, 2019 in order to reconcile their status should these percentages be less than the maximum percentage referred to in Article 3.
The decision defines the concepts to which the provisions apply.
The consumer is identified as any party that obtains goods or services, either for free or for a fee, in order to meet his own personal needs, those of others, or any individual with whom he is doing business or otherwise contracted to.
The decision identifies the supplier as the party that provides marketing and delivery services using technology or electronic systems and applications.
Marketing and delivery platforms, however, are defined as those companies and commercial institutions involved in the marketing and delivery of products using technology systems and applications.
The decision identified service charges as the percentages, commissions, or sums that are collected by product dealers in markets in line with those signed contracts.
The target market is defined as the marketing and product delivery market that employs technology systems and applications.
The decision of the Committee Tasked with Determining Maximum Prices and Profit Ratios No (3) of 2020 outlined certain conditions.
According to the conditions, marketing and delivery platforms are prohibited from imposing discriminatory conditions, refusing to deal with or placing restrictions upon the supplier, or imposing any other percentages or sums on suppliers and consumers through any means or under any label in order to collect additional charges in violation of the provisions of this decision.
Marketing and delivery platforms shall not increase charges for the services outlined in the decision before obtaining the prior approval of the committee.
The supplier should give priority to dealing with marketing and delivery platforms affiliated with national companies and businesses operating in the field of product marketing and delivery.
Marketing and delivery platforms subject to the provisions of this decision must also reconcile their status accordingly and commit to adding an appendix of the service charges for valid contracts in accordance with the provisions of this decision.
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