30% increase in consumer complaints during Q1 2018

May 26, 2018 8:00 am

When the UAE introduced the VAT system, its goal was to increase government revenues.

With the increase in government revenues, an increase of consumer complaints took place.

According to official figures, consumer complaints in Dubai soared by 30% in the first quarter of 2018 compared to the year-earlier period.

15% of those complaints are VAT related, the Commercial Compliance & Consumer Protection (CCCP) revealed.

However, VAT complaints fell short of Cash Refunds, which registered over 17%.

CCCP received 270 complaints a day on average in a total of 8,166 complaints during the first quarter of 2018, compared to 6,275 complaints during Q1 2017, according to WAM, the official news agency of the United Arab Emirates.

These numbers were registered despite the Emirates efforts to enhance the role of DED in consumer protection and reinforcing Dubai’s reputation as a safe shopping destination for residents as well as tourists, WAM explained.

READ: Which GCC city is defying the retail apocalypse?

Plunge in details 

CCCP dealt with 1,007 issues out of which consumer complaints accounted for 81%.

The rest included 1,062 notes and 779 inquiries, WAM said.

The services sector had the highest share of the total complaints received.

Q1 2018 Complaints by sector

Mohammed Ali Rashid Lootah, CEO of the CCCP sector, said: “The retail sector is a key driver of local economic growth in Dubai and the UAE.”

“Our effort is to bring greater transparency into business transactions, and create a culture of awareness and neutrality in the buying and selling processes in the retail sector, in accordance with the highest quality standards and practices,” he added.

READ: Gold will shine bright again: No more VAT on jewelry

Who complained? 

According to WAM, complaints received from inside the UAE accounted for 37% and the nationality-wise breakdown of complainants is as follows.

Q1 2018 Nationality breakdown

According to Lootah, that non-compliance with the purchase agreement was one of the most important complaints received during the first quarter of 2018, and the most issues complained about are:

Q1 2018 Nature of complaints

Lootah stressed the role played by DED and CCCP in immediately following up on complaints received.

Finding acceptable solutions to all parties concerned will be in a period not exceeding four working days from the date of receiving the complaint.

CHECK OUT: No other country in the region could top the UAE on this ranking

Don’t hesitate to complain

In April 2018, the UAE implemented an AI system to improve consumer protection.

Consumers can file complaints on the Dubai Consumer Protection website or by downloading the Dubai Consumer app available on Android and iOS mobile phones.

According to published reports, the system engages consumers in a direct dialogue to understand the complaint, process the information gathered, and analyze data.

Then the AI provides an immediate solution for consumer complaints based on the applicable policies and laws.

The new service receives complaints 24/7.

2017 complaints of different nature

According to WAM, CCCP revealed that there were a total of 25,665 consumer complaints in 2017; an average of 70 complaints per day.

Find below tables regarding 2017 consumer complaints

2017 complaints by sectors

Nature of complaints 

Lara Haidamous
By Lara Haidamous
Lara Haidamous, a junior editor at AME info, with over 3 years of experience in generating creative content.