Legislation Details
- Full Title: Federal Law by Decree Concerning Anti-Commercial Fraud
- Law Type: Federal Law by Decree
- Law Number: (42) of 2023
- Issued Date: 28 Sep 2023
- Effective Date: 29 Nov 2023
- Official Gazette: No. 760
- Sector: Economy and Business
- Status: Active
- Number of Articles: 54
- Chapters/Parts: 0
- Amendments: 0
Summary
This Federal Law by Decree aims to combat commercial fraud and the trade of counterfeit, fraudulent, and spoilt goods in the United Arab Emirates, including in the Free Zones. It sets out mechanisms, controls, and procedures to prevent the introduction of such goods into the UAE market and protect intellectual property rights. The law imposes obligations on providers of goods, grants enforcement powers to authorities, and prescribes penalties for non-compliance. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 2, 3) The law is significant for businesses and individuals in the UAE as it establishes a comprehensive legal framework to ensure fair and transparent commercial practices. It empowers authorities to take action against fraudulent activities, recall and destroy counterfeit goods, and impose substantial fines and imprisonment terms on violators. This helps maintain consumer confidence, safeguard public health, and foster a conducive business environment in the UAE. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 2, 4, 5, 16, 17, 18)
What is the scope and purpose of this law?
The Federal Law by Decree Concerning Anti-Commercial Fraud aims to combat counterfeiting of original goods and all forms of commercial fraud in the United Arab Emirates, including in the Free Zones. It sets out mechanisms, controls, and procedures to prevent the trade of counterfeit, fraudulent, and spoilt goods and create a legal and encouraging environment for the protection of intellectual property rights. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 2) The law applies to anyone who commits an act of commercial fraud in the UAE. Commercial fraud is defined as deceiving customers by replacing or changing the nature, amount, type, price, features, origin, source, or validity of goods, or providing false or misleading commercial data. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 1, 3)
What are the key definitions under this law?
The Federal Law by Decree provides the following key definitions:
- State: United Arab Emirates
- Ministry: Ministry of Economy
- Minister: Minister of Economy
- Competent Authority: The relevant Emirate's local competent authority responsible for applying the law
- Competent Court: The Federal or Local Court, as the case may be
- Supreme Committee: Supreme Committee for Anti-Commercial Fraud
- Commercial Fraud: Deceiving customers by any means, such as replacing or changing the nature, amount, type, price, features, origin, source, or validity of goods, or providing false or misleading commercial data
- Goods: Every natural material or animal, agricultural, industrial, transformative or intellectual product
- Fraudulent Goods: Goods that have undergone a change causing loss of material or moral value, or are advertised in a manner that contradicts reality
- Spoilt Goods: Goods that become wholly or partially unsuitable for exploitation, use, or consumption
- Counterfeit Goods: Goods bearing, without permission, a trademark identical or similar to a legally registered trademark
- Establishment: Any person carrying out an economic activity, regardless of its legal form
- Provider: Every natural or legal person who imports, exports, re-exports, manufactures, produces, markets, trades, promotes, disposes of, sells, possesses, stores, transports or displays goods
- Customer Recalling the goods: The natural or legal person that purchases the goods
(Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 1)
What are the main obligations and requirements?
The Federal Law by Decree imposes the following key obligations on providers of goods: 1. Recall fraudulent, spoilt or counterfeit goods from markets and stores, and inform the authorities, at their own expense. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 5) 2. Submit to the authorities the mandatory commercial books, documents, and invoices showing the commercial data of the goods. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 8) 3. Place identification cards or written information on the goods showing their components, usage, maintenance, and storage. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 8) 4. Refund the value of fraudulent, spoilt or counterfeit goods, or exchange them according to the customer's desire, without prejudice to the customer's right to claim compensation. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 7)
What licensing, registration, or approval requirements exist?
The legislation does not specify any licensing, registration, or approval requirements under this Federal Law by Decree.
What rights and protections does this law provide?
The Federal Law by Decree provides the following rights and protections: 1. Customers have the right to receive a refund for the value of fraudulent, spoilt or counterfeit goods, or to have them exchanged or changed according to their desire, without prejudice to their right to claim compensation. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 7) 2. The law creates a legal and encouraging commercial environment for the protection of intellectual property rights. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 2)
Which authorities or bodies are responsible for enforcement?
The Federal Law by Decree establishes the following authorities and bodies responsible for enforcement: 1. The Ministry of Economy and the relevant Emirate's local competent authority are responsible for applying the provisions of the law. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 1) 2. A Supreme Committee for Anti-Commercial Fraud is established, affiliated with the Minister of Economy, to oversee the implementation of the law. Its formation, work system, and jurisdiction are to be determined by a Cabinet resolution. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 14) 3. Employees specified by a resolution issued by the Minister of Justice, in agreement with the Minister of Economy or the Head of the Local Judicial Authority, are granted the capacity of judicial enforcement officers to record violations and enforce the law. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 9)
What are the penalties for non-compliance?
The Federal Law by Decree prescribes the following penalties for non-compliance: 1. Imprisonment for a period not exceeding 2 years and/or a fine of not less than AED 5,000 and not exceeding AED 1,000,000 for violations of Articles 4, 5, 8, and 11. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 17) 2. Imprisonment and/or a fine of not less than AED 100,000 and not exceeding AED 2,000,000 in the following cases: a. If the fraud, deception, or counterfeiting involves the use of counterfeit or different weights, measures, seals, labels, or examination machines. b. If the fraudulent, spoilt or counterfeit goods are harmful to the health and safety of humans or animals. c. If the fraudulent, spoilt, or counterfeit goods are medical drugs, agricultural crops, or organic food products. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 18) 3. The Competent Court must order the confiscation or destruction of fraudulent, spoilt or counterfeit goods, medical drugs, crops, products, materials and tools used in the violation. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 19)
What fees, charges, or financial provisions are specified?
The Federal Law by Decree does not specify any fees, charges, or other financial provisions.
What exemptions or exceptions apply?
The legislation does not provide any exemptions or exceptions to the scope of this Federal Law by Decree.
How are disputes resolved under this law?
The Federal Law by Decree does not specify any dispute resolution mechanisms. However, it states that the Competent Court may order the release of seized or reserved goods under certain conditions. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 12)
What are the key deadlines and time limits?
The Federal Law by Decree sets the following key deadlines and time limits: 1. The Competent Court must order the release of seized or reserved goods within 24 hours of the provider's request, if certain conditions are met. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 12) 2. The goods must be released if the Competent Court does not issue an order confirming the reservation within 45 days of the seizure, or within 20 days for goods subject to rapid destruction or damage. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 12) 3. The Competent Court must confirm or cancel a decision to close a shop or place within 10 working days of the decision. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 13)
How does this law interact with other UAE legislation?
The Federal Law by Decree Concerning Anti-Commercial Fraud repeals and replaces the previous Federal Law No. (19) of 2016 Concerning Anti-Commercial Fraud. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Art. 24) The law also references the following related legislation: - The Constitution of the United Arab Emirates - Federal Law No. (1) of 1972 Concerning the Competences of Ministries and the Powers Of Ministers, and amendments thereto (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Preamble)
When did this law come into effect?
The Federal Law by Decree Concerning Anti-Commercial Fraud was issued on 28 September 2023 and came into effect on 29 November 2023, as per the Official Gazette No. 760. (Federal Law by Decree Concerning Anti-Commercial Fraud, 2023, Issued Date, Effective Date)
Source Documents
This article analyses Federal Law by Decree Concerning Anti-Commercial Fraud for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.