Qatar: Product Liability

Product liability and safety is regulated in the State of Qatar under the Consumer Protection Law No. 8 of 2008 and its amendments (CP Law), and the Minister of Commerce and Industry’s Decree No. 68 of 2012 on the issuance of the Regulations on the implementation of the Consumer Protection Law No. 8 of 2008 (CP Regulations). Certain provisions of the Civil and Commercial Procedures Law No. 13 of 1990 (CCP Law), the Civil Law No. 22 of 2004 (Civil Code) and the Legal Profession Law No. 23 of 2006 and its amendments (Legal Profession Law) can also apply.

Under CP Law, ‘product’ is not expressly defined however, ‘Commodity’ is defined as any industrial, agricultural, animal or manufactured product, including the product’s raw material and components. In our view, such definition can be stretched out to include software by way of a download depending on the supporting circumstances.

Under the CP Law, a product is considered defective if there is a deficiency in the value of the goods or services supplied, or the intended use of either, which results in the consumer’s inability, whether wholly or partially, to benefit from the goods or services for the intended use. Deficiency includes negligence in handling or storing of the goods or services unless the consumer caused such deficiency. Suppliers, providers and advertisers can be held liable for a breach of any of the provisions of the CP Law and can be held responsible for any damage resulting from the use or consumption of the goods or services (Article 16, CP Law) (see Question 3). Suppliers or providers are also responsible for the non-provision of spare parts and guarantees that are contractually agreed to for the goods or services. Suppliers, providers or advertisers who do not perform their obligations under chapter 3 of the CP Law may be subject to a fine of between QAR3,000 and QAR1 million, or imprisonment of up to two years, or both (Articles 18, 19 and 20, CP Law). The burden of proof would generally rest with the consumer to provide proof of its inability, whether wholly or partially, to benefit from the goods or services for the intended use and in the case where a defective product causes harm to the consumer, to prove that the injury resulted as a direct consequence of the defective product.

Under the CP Law, suppliers or advertisers can be found liable for damage resulting from the use or consumption of the goods or services. A consumer is a person who obtains goods or services, for specific consideration or no consideration, to satisfy personal needs, third party needs or to conduct further business or agreements with such goods or services (Definitions Section, CP Law). A supplier is anyone who provides the services or manufactures the product or distributes, trades, exports, imports or otherwise contributes in any other way into bringing the product into existence, for the purposes of providing it to the consumer (Definitions Section, CP Law). An advertiser is anyone who advertises the products or services directly or indirectly (Definitions Section, CP Law). Product liability for defects is shared between the manufacturer, distributer and trader. It is assumed that the liability is jointly shared. Generally, liability is apportioned according to the damage contributed by each party or defendant. Additionally, under Article 257 of the Civil Code, the court can reduce the compensation amount as it deems just. The parties can also agree to relieve each other from liability while performing the contract unless such liability arises out of gross negligence or mistake (Article 259, Civil Code). If the responsible party was not included in a case, the other responsible party can recover compensation for contributory damages from them. If damages between these parties are not settled, a case can be submitted to the specialised court for the damaged party to reclaim any compensation from the responsible party.

The CP Law does not expressly provide for defences against product liability. The general defences stated under the Civil Code (such as contributory fault of the consumer) would not be relevant in practice to defective products.

The CP Law does not provide for a time limit or a statute of limitations for proceedings. Under the Civil Code, claims must be brought within one year of the date of delivery, unless a longer warranty period is agreed between the parties. A supplier cannot claim limitation if it intended to conceal the defect. Suppliers and advertisers owe consumers the following duties, as applicable: Healthy and safe use of the products or services. Correct and accurate information and data. Respect to values, customs and traditions. Respect of the consumer’s right to free choice, the right to protect its legitimate interests and the right to fair compensation for damages.

Under the CP Law, consumers have the right to receive adequate compensation for any damage resulting from the purchase or use of any goods or services (Article 3, CP Law). Any agreement that contradicts this provision is considered void (Article 3, CP Law). Additionally, any condition or clause under any agreement or other document relating to the contractual relationship between consumers and suppliers or providers that exempts the latter from any of the obligations under the CP Law is considered void (Article 24, CP Law). Suppliers or providers cannot therefore limit their liability for defective products in the State of Qatar. Suppliers or providers of products that are defective or that do not comply with the requisite standards or the intended and contractually agreed on use, must replace, fix or compensate the consumer for such defect or noncompliance (Article 5, CP Law). According to Article 18 of the CP Law however, an advertiser shall be exempted from liability where the information included in the advertisement which was provided by the supplier is of a technical nature and its accuracy cannot be verified by the advertiser.

In order for the claimant to succeed in a non-contractual claim for damage caused by a defective product, he must prove damage, fault and causal liability on the basis of tort liability.

Damages are calculated based on the value of the defective goods or services in addition to the value of the profit lost by the consumer, if applicable. Punitive damages are inapplicable in Qatar. Essentially, damages will depend on the circumstances of each case, nature of the goods or services and causation.

Under the rules, if it is not possible to identify the fault attributable to a torfeasor, in the same action that has resulted in damages, the tortfeasors will be jointly and severally liable towards the person the person sustaining the damages. Where the ultimate damage has been sustained due to a variety of consequential faults carried out by multiple tortfeasors, the court will take into account the facts to determine the proximity of events and their relation to the damage caused.

There may be three defences available. These are: If a person himself contributed into damage (self – contributory damage); If the tortfeasor is able to identify damages resulting from his specific fault; and Fault of tortfeasor if the chain of causation is broken.

According to Article 219 of the Civil Code, the filing of a claim caused by an unlawful act shall prescribe after a period of three years has elapsed from the date on which the aggrieved and the liable party became aware of the damage, or after a period of fifteen years has elapsed from the date of occurrence of the unlawful act, whichever occurs first.

Liability cannot be excluded for tort.

The law does not specifically focus on this however, under CP Law, consumers have a right to receive adequate compensation for any damage resulting from the purchase or use of any good and services. Any agreement that contradicts this provision shall be void. Additionally, any condition or clause under any agreement, or other document relating to the contractual relationship between consumers and suppliers or providers that exempts the latter from any obligations under the CP Law is considered void. Suppliers or providers of products that are defective or that do not comply with the requisite standards or intended and contractually agreed on use, must replace fix, compensate the consumer for such defect on noncompliance. Suppliers or providers who cannot comply with the warranty or guarantee provisions within 15 days must provide the consumer with a similar product, free of charge, that the consumer can use until the original product is replaced or fixed. Suppliers or providers must either: Guarantee the service provided or reimburse the consumer if the service provided is defective or does not comply with the provisions of the CP Law. Provide repairs, maintenance or post sale service or, if the service provided is defective or does not comply with the provision of the CP Law, allow the consumer to return the product and reimburse the consumer. The warranty period must be reasonable for the services provided and must be expressly stipulated for products. Under the CP Regulations, the guarantee period for products that are intended for long-term use must be at least six months and at least three months for other products (Article 11, CP Regulations). Parties can agree on warranty periods for products or services if there are no specific warranty periods set out in the CP Regulations. In such cases, the agreement must also include the following (Article 13, CP Regulations): (i) Name of the commercial shop and the supplier’s details. (ii) The date the product was purchased. (iii) Warranty period. (iv) Product’s name, model (type) and serial number. (v) Whether the warranty includes all parts or components of the product, maintenance fees and replacement provisions. (vi) Consumer’s obligations through the warranty clauses. (vii) Any other provisions that are included under the agreement. Article 462 of the Civil Code provides that the warranty period is one year from the date of delivery unless the seller agrees to be bound the warranty for a longer period.

Article 3 of the CP Law states that the consumer shall be entitled to fair compensation for any property or financial damages sustained by him as a result of the purchase or use of commodities and services. Any agreement contrary to the aforesaid shall be deemed null and void.

Under the general principles, the parties are free to limit/exclude liability under contract except in cases of deceit or gross mistake.

Qatari law does not recognise the concept of binding precedent. However, certain general principles upheld in the decisions of the Court of Cassation are followed by the lower courts. Decisions of the Court of Cassation are not published on a regular basis and those that are published may not always be up-to-date. One of the most notable ministerial initiatives in relation to product liability and fair competition is the Ministry of Commerce and Industry’s nine warranty clauses that must be followed by local dealerships. The clauses apply during the sale of new and near-new cars, and outline an owner’s rights in getting a vehicle serviced or repaired at any garage without voiding the terms of their warranty.

A lawsuit can be filed by submitting a complaint to the Registry of the Court, after which, the defendant is summoned accordingly (Article 31, CCP Law). Under such complaint, a statement of claim must contain the subject matter of the lawsuit, the claimant’s requests and the evidence among other things, such as name, capacity, email (if any), and so on.

Qatar is a civil law jurisdiction; therefore, the concept of juries does not exist or apply. Under the CCP Law, the Qatari judicial system consists of three levels: First Instance Courts, which are either Plenary Courts or Partial Circuit Courts, depending on the value or subject matter of the lawsuit. Appellate Courts. The Court of Cassation. Certain lawsuits are subject to only two levels of adjudication depending on their amount or subject matter. The court with jurisdiction over a certain product liability case depends on the value of the claim, as product liability cases fall under civil or commercial matters.

Qatar law does not recognise group actions.

There is no prohibition on third party litigation funding; it is up to the parties to decide. However, the unsuccessful party is liable for the payment of the costs associated with the litigation process in addition to the court fees. This type of funding is more common in international arbitration and is not commonly used in local litigation, if used at all. Under Article 37 of the Legal Profession Law, an attorney’s fees cannot be contingent on the outcome of the case or be calculated on a certain percentage of the claims or value of the claims; attorneys are entitled only to the relevant fees once they are due.

Product liability cases are not too common mainly because Consumer Protection Department (CPD) are quite active in attending to consumer complaints and that defective products are promptly retained and dealt with in accordance with the applicable laws and regulations.

There have been no public proposals of reform.

There have not been any developments relating to consumer protection over the last 12 months.