Saudi Blocks E-Store Over Delayed Deliveries, Unpaid Refunds

Saudi Arabia's Ministry of Commerce ordered an electronics e-store blocked after it failed to deliver products on time and ignored customer refund requests, violating the kingdom's E-Commerce Law.

The ministry said the store stopped responding to consumers after taking payment, did not notify buyers of shipment delays, and issued invoices missing mandatory details. Regulators required the store to resolve all open orders and complaints before it can resume operations.

Penalties under the law for violations of this kind can reach 1 million Saudi riyals – roughly $267,000 – in addition to platform shutdowns and outright bans on business activity. The ministry said it is actively scanning e-commerce platforms for compliance and will escalate enforcement.

The action comes as Saudi retail regulators tighten enforcement of online consumer protection rules that have been on the books for years but were often lightly policed alongside a fast-growing e-commerce sector. The ministry's statement did not name the e-store or disclose how many orders were affected.

Enforcement has accelerated in recent months as the ministry builds out a digital monitoring system for e-commerce activity, an effort tied to broader retail sector modernisation under Vision 2030. Online sales in the kingdom have grown at roughly 30% annually since 2020, drawing more regulatory scrutiny on fulfillment and payment processes.

The same rules apply across all product categories, though household electronics – typically higher-ticket items – generate a disproportionate share of delivery-dispute cases because of their cost and the frequency of drop-ship fulfillment models. The ministry did not say whether other stores in the sector are under investigation.

Argaam reported the enforcement action Thursday.