to 13 Rabi' Al-Awwal 1438 H
COMBATING COMMERCIAL FRAUD
Law no 4/1979 dated 19/03/1979.
Khalifa bin Zayed Al Nahyan President of the United Arab Emirates,
to the perusal of the Constitution; and
Law no. (1) of 1972 on the Competencies of the Ministries and Powers of the
Ministers, and its amendments;
Law no. (5) of 1975 on the Commercial Register;
Law no. (4) of 1979 on the suppression of fraud and deception in commercial
Law no. (5) of 1979 on agricultural quarantine, and its amendments;
Law no. 6 of 1979 on the veterinary quarantine, and its amendments;
Law no. (10) of 1980 on the Central Bank, the Monetary System and the
Organisation of the Banking Profession, and its amendments;
Law no. (18) of 1981 on the regulation of commercial agencies, and its
Law no. (4) of 1983 on the Profession of Pharmacy and Pharmaceutical
Law no. (2) of 2015 on the commercial companies;
Law no. (5) of 1985 on the promulgation of the Civil Transactions Law of the
United Arab Emirates and its amendments;
Law no. (3) of 1987 promulgating the Penal Code, and its amendments;
Law no. (35) of 1992 promulgating the Criminal Procedure Law, and its
Law no. (36) of 1992 on Restitution;
Law no. (37) of 1992 on trademarks and its amendments;
Law no. (38) of 1992 on the establishment of arboretums and the regulation of
the production, import and circulation of seedlings;
Law no. (39) of 1992 concerning the production, import and trading of
fertilisers and soil conditioners;
Law no. (41) of 1992 on pesticides;
Law no. (11) of 2015 controlling trading high-value stones and precious metals
and stamping them;
Law no. (18) of 1993 on the promulgation of the Commercial Transactions
Law no. (14) of 1995 regarding fighting narcotics and psychotropic substances,
and its amendments;
Law no. (20) of 1995 on the Drugs and Pharmaceuticals derived from Natural
Law no. (4) of 2000 on UAE Securities & Commodities Authority and Market,
and its amendments;
Law no. (28) of 2001 on the establishment of Emirates Authority for
Standardisation and Metrology, and its amendments;
Law no. (7) of 2002 on copyrights and neighbouring rights, and its
Law no. (17) of 2002 on the regulation and protection of industrial property
rights for patents and industrial designs and models, and its amendments;
Law no. (8) of 2015 on the Federal Customs Authority;
Decree-Law no. (3) of 2003 on the Regulation of Telecommunication Sector, and
Law no. (1) of 2006 on electronic transactions and commerce;
Law no. (24) of 2006 on consumer protection, and its amendments;
Law no. (6) of 2007 on the Establishment of the Insurance Authority and
Regulation of its Operations, and its amendments;
Law no. (13) of 2007 on the commodities subject to the import and export
control, and its amending laws;
Decree-Law no. (5) of 2012 on Combating IT Crimes;
based on the proposal of the Minister of Economy, the approval of the Cabinet
and the Federal National Council and the ratification of the Federal Supreme
the following Law:
the implementation of the provisions of this Law, the following words and
expressions shall have the meanings stated beside them unless the context
United Arab Emirates.
Ministry of Economy.
Minister of Economy.
authority: Competent federal or local authority.
Committee: Supreme Committee for combating Commercial Fraud
Committee for combating commercial fraud in the concerned Emirate.
Fraud: Deceiving a customer in any way by altering or changing the nature,
amount, type, price, essential characteristics, origin, source or validity of
the commodities or any other matter related thereto or submitting incorrect or
misleading commercial data on the promoted products. This shall include
deception, counterfeiting and fraud in the service in a way not compliant with
the laws in force at the State or for including false or misleading
Using fraudulent anecdotal or actual means by a contracting party to make the
other party enter into a contract, or a contracting party deliberately hiding a
fact or defect in the item if it was proved that the other party would not have
entered into a contract if he had known of the same.
All natural materials or animal, agricultural, industrial or transformational
products, including the primary materials and components of the product.
Any physical or legal person, working in his name and for his account in the
commercial works set forth in the Commercial Transactions Law, who starts a
commercial activity or takes any of the forms set forth in the Commercial
Companies Law, even if such activity is civil, or declares to the public, in any
way, of an activity founded for commerce, or exercises trade under a pseudonym
or a hidden name behind another person or covering for another person.
Any institution, company or any other entity taking any of the legal forms
through which the commercial activity may be exercised at the State.
Commodities: The commodities that do not conform with the rules, conditions,
requirements, specifications and standards determined by the laws, regulations,
rules and decisions in force at the State or the commodities that were subject
to a change of any type, form, source or nature without obtaining the required
approvals, or those advertised or promoted in a way that is contrary to the
Commodities: The commodities that are no longer usable due to storage or
transport factors or that were subject to other natural factors, contradicting
the conditions specified in the laws, regulations and approved technical
specifications, including damaged commodities.
Commodities: The commodities bearing, without authorisation, a trademark that is
conformant or similar to the legally registered trademark.
The provisions of this Law shall apply to whomever committed a commercial fraud,
without excluding the free zones from the application of these provisions.
Any of the following acts shall be considered a commercial fraud:
The import, export, re-export, manufacturing, sale, display or acquisition for
the purpose of sale, storage, lease, marketing or trading, the fake, corrupt or
Advertising fake or unreal prizes or reductions.
Exploiting commercials, submitting the same or promising to submit the same in
misleading and incorrect promotions or promoting fake, corrupt or counterfeit
Offering, submitting, promoting or advertising fake commercial services.
prejudice to the criminal liability, the competent authority shall issue a
decision compelling the importer to return the fake or corrupt commodities to
their source within a specified period. If he fails to return the same to their
source within this period, the competent authority may order their destruction,
allow the use thereof for any other purpose or return them by itself to their
source. The counterfeit commodities shall also be destructed, according to the
conditions and rules determined by the Implementing Regulation of this
all events, the importer shall settle any costs or expenses incurred by the
competent authority because of the disposition of the violating
Submit to the competent authority the mandatory commercial books or the like
clarifying the commercial information of the commodities owned or acquired by
him, the value thereof and all the supporting documents and invoices whenever
required to do so.
Place on the commodities the explanatory information, i.e. the ID labels, or any
information written, printed, drawn or engraved on the product and stating the
components, methods of use, maintenance or storage of the commodities according
to the laws in force at the State.
Submit to the competent authority all that would determine the data and
information of the provided service.
A Supreme Committee shall be formed by a decision from the Minister under the
Committee for Combating Commercial
reporting to the Ministry, presided by the Undersecretary and having as members,
representatives of the competent authorities. It shall:
Suggest the strategies and policies to combat commercial fraud.
Study the commercial fraud reports referred to it by the competent authority and
take necessary decisions in their regard.
Study the obstacles faced by law enforcement and suggest a mechanism to address
Issue the working regulation of the sub-committees.
Any other related tasks assigned by a decision from the Minister.
The Supreme Committee may refer to consultants and experts deemed appropriate
without having the right to vote on its decisions.
sub-committee shall be formed in each Emirate to combat commercial fraud and
Consider the request of reconciliation in the violations of the establishments
offered to it, except the violations set forth in Article (14) of this
Warn the violating establishments, and the Implementing Regulation of this Law
shall determine the types of warnings.
Close the violating establishments for a period not exceeding two weeks in
coordination with the competent authority.
Follow the processes of destruction, recycling or return to the source,
according to the case, of the fake, corrupt or counterfeit commodities.
Provide the Ministry with periodic reports on its works as determined by the
Implementing Regulation of this Law.
concerned persons may appeal the decisions of closure issued by the
sub-committees before the Supreme Committee, within a period not exceeding five
working days from the date of their notification thereof. The Supreme Committee
shall issue its decision on the appeal within three working days from the date
of filing the same.
The sub-committees may carry out reconciliation in the violations upon the
request of the violator and shall determine the fine that shall be paid by the
violator provided that it is not less than twice the minimum fine set forth in
If the violator rejects the reconciliation, the papers shall be transferred to
the Public Prosecution. If the rejection is made by the sub-committee, the
violator may appeal such rejection before the Supreme Committee.
The Implementing Regulation of this Law shall determine the necessary procedures
for the reconciliation.
the exception of the perishable commodities by lapse of time, the competent
authority may detain the seized commodities at the violating establishment, at
its own expense, for a period not exceeding thirty days from the date of
detecting the violation and these commodities shall not be disposed of until
issuance of a decision in their regard by the sub-committee.
violating establishment may request the competent Court to release the seized
commodities and they shall not be released except by a ruling from this
reconciliation revenues set forth in Article (8) of this Law shall be
transferred to the account of the competent authority that carried out the
commits the crime of commercial fraud shall be sentenced to imprisonment for a
period not exceeding two years, and to a fine not less than fifty thousand
Dirhams and not exceeding two hundred and fifty thousand Dirhams, or to either
attempts to commit the crime of commercial fraud shall be sentenced to
imprisonment for a period not exceeding one year, and to a fine not less than
ten thousand Dirhams and not exceeding one hundred thousand Dirhams, or to
the crime of commercial fraud or attempts the same if the commodities are food
for humans or animals, prescription drugs, agricultural crops or organic food
products, shall be sentenced to imprisonment for a period not exceeding two
years, and to a fine not less than two hundred and fifty thousand Dirhams and
not exceeding one million Dirhams, or to either penalty.
Without prejudice to Article (3) of this Law, shall be sentenced to imprisonment
for a period not exceeding six months and a fine equivalent to double the value
of the commodities disposed of, whoever disposes of the seized commodities in
any way whatsoever without a permit or licence from the sub-committee.
If the commodities disposed of are food for humans or animals, prescription
drugs, agricultural crops or organic food products, the penalty shall be
imprisonment for a period not exceeding two years and a fine not less than two
hundred and fifty thousand Dirhams and not exceeding one million Dirhams or
knowledge of the purchaser that the commodity is fake, corrupt or counterfeit
shall not excempt the merchant from the penalty prescribed in this Law.
Court shall, in the event of conviction of one of the crimes set forth in
Article (14), and Clause (2) of Article (15) of this Law, rule, in addition to
the prescribed penalty, the confiscation or destruction of the food,
prescription drugs, crops, products or tools used therein and shall order the
publication of the ruling at the expense of the losing party in two local daily
newspapers, one of them issued in Arabic.
The Court may, upon conviction of any of the crimes set forth in Article (14)
and Clause (2) of Article (15) of this Law, rule, in addition to the prescribed
penalty, the closure of the violating establishment for a period not exceeding
Without prejudice to the provisions of Clause (1) hereof, if the violating
establishment is a department store, the violating department or the part
related to the type of the violating commodity shall be closed and a label shall
be placed on the closed section or department stating the reason of
prejudice to any more severe penalty provided by another Law, whoever violates
any other provision of this Law, its Implementing Regulation and the decisions
issued pursuant thereto shall be punishable by a fine not exceeding fifty
In addition to the imposition of the prescribed penalty, the Court shall, in
case of recidivism in violation to the provisions of Article (14) and Clause (2)
of Article (15) of this Law, cancel the licence.
Taking into account the provisions of the previous Clause, the Court may, in
case of recidivism in violation to the provisions of this Law, double the
prescribed penalty or add the closure of the store or cancellation of the
licence to the prescribed penalty.
employees specified by a decision from the Minister of Justice, under agreement
with the Minister or the competent authority, shall have the capacity of
judicial officers as per proving the violations to the provisions of this Law,
its Implementing Regulation and the decisions issued pursuant thereto.
competent authority shall, each in its field of competence, apply the provisions
of fraud in the service, according to the rules determined by the Council of
Council of Ministers shall issue the Implementing Regulation and the necessary
decisions for the implementation of the provisions of this Law, within one
hundred and eighty days from the date of enforcement thereof.
provision that is contrary or inconsistent with the provisions of this Law shall
be cancelled, in addition to the Federal Law no. (4) of 1979 on the suppression
of fraud and deception in commercial transactions. The regulations and decisions
issued pursuant thereto shall continue to be valid without prejudice to the
provisions of this Law, until issuance of the regulations and decisions
replacing the same.
Law shall be published in the Official Gazette and shall enter into effect on
the day following the date of publication thereof.
by Us at the Presidential
Palace in Abu Dhabi:
On: 12th of December
Corresponding to: 13 Rabi' Al-Awwal 1438 H
Zayed Al Nahyan
President of the
United Arab Emirates State
This Federal Law was published in the
Official Gazette No. 609, p. 9.