When Jeanne D’Arc Umugwaneza, 23, came across what seemed like a bargain online in December 2025, she thought she had found the perfect deal. The Nyamirambo resident had seen a pair of shoes elsewhere for about Rwf40,000. But on an online shop she found them advertised for Rwf21,500. “I was told I would receive them in two hours and that the delivery cost was included,” she said. “But two hours passed... then three, four, and five. When I called, the contact was unreachable, and the next day the account was offline. That’s when I realised I had been scammed.” ALSO READ: How can e-commerce scale beyond Kigali? Cases like Umugwaneza’s highlight the risks many consumers face when shopping online. However, such concerns could soon be addressed under Rwanda’s new Competition and Consumer Protection Law, which introduces clearer rules for online trade and strengthens consumer safeguards. Gazetted on March 4, the law requires all online businesses to obtain licences, comply with consumer protection standards, and gives existing traders six months to meet the new requirements. Preventing anti-competitive practices The law reinforces rules prohibiting agreements between businesses that restrict or distort competition. ALSO READ: Govt moves to curb subsidy misuse under new law Horizontal agreements between competitors, such as price fixing, bid rigging, market allocation, or refusal to trade are banned. Vertical agreements that unfairly limit production, resale terms, or market access are also prohibited. However, businesses may seek authorisation from the Regulatory Authority if they demonstrate that such agreements deliver clear economic or technical benefits, promote efficiency or sustainability, and allow consumers to share the gains without undermining competition. Stronger merger oversight The new law also strengthens merger control.The Regulatory Authority may intervene where a merger is likely to eliminate or significantly lessen competition or affect the public interest. ALSO READ: Government tables bill to prevent market domination from mergers This could arise where major competitors merge and increase market concentration, where dominant firms repeatedly acquire smaller rivals, or where mergers restrict access to key inputs within strategic sectors. Authorities may also review mergers that could negatively affect employment, local supply chains, or critical sectors of the economy. Regulation of subsidies The law introduces oversight of state subsidies to ensure that government support does not distort market competition. While the government will continue supporting priority sectors such as agriculture, manufacturing, infrastructure, and export promotion, the Regulatory Authority will assess subsidies above a set financial threshold. The aim is to ensure transparency and prevent situations where government support unfairly benefits certain companies, discourages private investment, or protects inefficient firms. According to Trade and Industry Minister Prudence Sebahizi, the law does not restrict government support but ensures it is justified, proportionate, and aligned with regional standards under the East African Community (EAC) and COMESA. Market investigations The Regulatory Authority is empowered to conduct market inquiries across economic sectors in order to identify and address unfair competition practices. Stronger consumer protection The law also reinforces consumer rights, including protection from unsafe or harmful goods and services and access to clear and accurate information about products and services to help buyers make informed decisions. It also guarantees consumers the right to choose from a variety of goods and services at competitive prices, to have their interests heard in business practices, and to seek redress in cases involving defective or unsafe products through compensation, replacement, repair, or refunds. The law further promotes consumer education to ensure people have the knowledge and skills needed to make informed purchasing decisions. Regulation of multi-level marketing The law also introduces regulation of multi-level marketing activities and safeguards against illegal pyramid schemes. Businesses operating under this model, where participants sell goods while recruiting others and earning commissions from their sales, must obtain a licence from the Regulatory Authority. Detailed procedures governing licensing and operations will be outlined in regulations to be issued by the authority. Dispute resolution mechanisms The law establishes mechanisms to resolve disputes related to competition and consumer protection through amicable settlement processes, appeals before the regulatory authority, and further review by an independent appeal committee or the courts. Sanctions for violations will consider the severity of the offence, the offender’s capacity to pay fines, and international best practices. Analysts weigh in Economic analyst Straton Habyarimana said companies with dominant market positions must avoid abusing their power. “When companies with monopolies merge, they can set unfair prices, which undermines consumer rights,” he said. He added that prices should reflect production costs, market demand, and reasonable profits. “Government subsidies are meant to empower companies, but they are not permanent. Even subsidised firms must price responsibly to avoid crowding out competitors.” Habyarimana also noted that Rwanda previously lacked clear rules for e-commerce, making it harder to address issues related to payment systems, pricing structures, and trust in online transactions. Jean Claude Rwubahuka, a Business development expert said stronger regulation is also necessary for mergers, acquisitions, and joint ventures, which are often driven by profit motives. He pointed out that international platforms such as eBay, Alibaba, and PayPal provide buyer protection through refund systems when transactions fail. “Locally, consumers often risk losing both their money and the product,” he said, adding that improved regulation could help build trust in Rwanda’s growing e-commerce sector.
