The Department of Economy and Tourism has announced that three automobile rental companies in Dubai have been ordered to close their doors in 2023-24 due to violations of rules pertaining to the rights of consumers to be protected.
"Depending on the nature of the infraction, there are various categories of fines, with a minimum of Dh10,000." The fine is increased by a factor of two each time the infraction is committed again. We do not, however, wait till that time has passed. Should the infraction occur again, the offices of the companies in question will be shut down. In an interview with Khaleej Times, Ahmed Ali Mousa, who is the director of consumer protection at the Department of Economy and Tourism in Dubai, stated that the company had closed three offices of automobile rental firms. Two of these offices were closed in 2023, while the third office was terminated in the first quarter of this year.
Circular to all car rental companies
A circular was recently distributed to all car rental companies by the Dubai Corporation for Consumer Protection and Fair Trade, which is a department that falls under the Department of Economy and Tourism. The circular instructed all rental companies to restore deposits made by clients within thirty days of the vehicle being returned.
The number of firms registered in Dubai's automobile rental industry increased by 23.7% in the first half of 2022, as revealed by the Roads and Transport Authority. This is an increase from the 1,087 companies that were registered during the same time period in the previous year. In the first half of 2022, approximately 78,000 automobiles were registered, which is a significant increase over the 69,000 vehicles that were registered during the same time period in the previous year.
Charging high prices for car washes
On the other hand, Mousa said that the Department of Transportation has also penalized several car rental companies for charging high rates for car washing.
In the event that a consumer is renting a car, purchasing furniture, or using any other type of service provider, Mousa recommended that they make certain that they have a clear contract with the organization.
Additionally, it is imperative that you look over the contract. In the event that they encounter any difficulties, they are more than welcome to contact us through our hotline or website in order to receive any protection they may require.
He went on to say that the Department of Economy and Tourism takes measures to ensure that there is no fraud since they believe that this practice will assist in attracting a greater number of firms to Dubai and will also enhance the proportion of spending that takes place in Dubai.
