Royal Decree No. (M/11) Dated 29/5/1404H (corresponding to 2/3/1984)
WITH THE HELP OF ALMIGHTY ALLAH,
WE, FAHD BIN ABDULAZIZ AL-SAUD, THE KING OF THE KINGDOM
OF SAUDI ARABIA,
After reviewing the Articles (19) and (20) of the Law of the Council of Ministers of
Saudi Arabia issued upon the Royal Decree no. (38) dated 22/10/1377H
(corresponding to 12/5/1958),
After reviewing the Anti-Commercial Fraud Law issued upon the Royal Decree
No. (45) dated 14/8/1381H (corresponding to 21/1/1962),
And after reviewing the Resolution no. (107) dated 12/5/1404H (corresponding to
14/2/1984) issued by the Council of Ministers,
DO HEREBY DECREE THE FOLLOWING:
First: The approval of the Anti-Commercial Fraud Law with the attached form.
Second: His Royal Highness Deputy Prime Minister as well as the ministers, each
within the scope of his jurisdiction, shall bring this Decree into force.
Royal Signature
Anti-Commercial Fraud Law
Article 1
A fine ranging from SR 5 thousand to SR 100 thousand,a sentence of closing
downthe shop for a period of not less than a week and not exceeding 90 days or
both penalties shall be imposed on any person who defrauds, attempts to defrauds,
cheats or attempts to cheat by any meansin one of the following:
a. Product's essence, nature, kind, type, components or essential characteristics.
b. Product's origin.
c. Product's quantity, whether in terms of weight, measure, size, number,
capacity or caliber.Or the application of methods and means that affect
negatively on product's quantity.
d. Product's description, declaration, or offering in a manner thatincludes false or
deceptive statements.
Article 2
A penalty of closing down the shop,or imprisonment for a period ranging from a
week to 90 days,along with a fine of not less than SR 10 thousand and not
exceeding SR 100 thousand and confiscation of the products subject of the violation
shall be imposed on:
a. Any person who defrauds or attempts to defraud in the components of the
human or animal foods.
b. Any person who sells,offers for sale, or holds any of the human or animal
foods whose components are fraudulent or spoilt.
Article 3
The commodity that is not in full compliance with the determined specifications
shall be considered fraudulent or spoilt. The Implementing Regulations shall specify
such cases.
Article 4
The commodity shall be consideredspoilt if the period of validity recorded thereon
is expired.
Article 5
Without prejudice to the penalties set forth in the Law of Customs and the
Implementing Regulations thereof or in any other law, the penalty mentioned in
the Article(1) shall be imposed on any person who imports any fraudulent, spoilt or
unusable commodity. If not removing the signs of fraud, the importer shall be
ordered to re-export the commodity in accordance with the determined controls
within the period specified in the Implementing Regulations. In case of refraining
from executingthe order on the specified time, the commodity shall be confiscated
by an administrative decision without any charge; given that, the Implementing
Regulations shall show the way of disposing of it.
Article 6
Without prejudice to imposition of the determined penalty, the factory or the
furnisher of any fraudulent, spoilt or unusable commodity shall be ordered to
withdraw the commodity from the market. Also, the commodity shall be
confiscated by an administrative decision without any charge, unless the factory or
the furnisher removes the signs of fraud, re-manufactures or furnishes the
commodity in accordance with the determined controls within the period specified
in the Implementing Regulations. In case of refraining from executing the order on
the specified time, the commodity shall be confiscated by an administrative decision
without any charge; given that, the Implementing Regulations shall show the way
of disposing of it.
Article 7
Without prejudice to the provisions of the Article (6), the penalty set forth in the
Article (1) shall be imposed on any person who sells or offers for sale any fraudulent,
spoilt or unusable commodity. Also, the commodity shall be confiscated by an
administrative decision without any charge if the components are fraudulentor
spoilt. The other commodities subject of the violation shall be disposed of in
accordance with the provisions of the Implementing Regulations.
Article 8
A fine ranging from SR 5 thousand to SR 100 thousand shall be imposed on any
person who imports, manufactures, prints, holds, sells, or offersfor sale any package,
material or printed materialswith the aim ofdefrauding the commodity. Also, the
commodity shall be confiscated by an administrative decisionwithout any charge;
given that, the Implementing Regulations shall show the way of disposing of it.
Article 9
The seller shall be ordered to repay the price for the buyer if the commodity is
fraudulent, unusable, spoilt, or used to defraud any other commodity.
Article 10
In addition to the application of other penalties set forth in this Law, any person
disposing of any impounded commodity shall, in the application of the AntiCommercial Fraud Law, be enforced to submit its price to the fund of the Ministry
of Commerce.
Article 11
The penalties set forth in this Law shall be applied to any person participated in or
instigated to commit a violation.
Article 12
To apply the provisions of this Law, the commodity shall be supposed to be
fraudulent, spoilt or unusable as long as the violator is engaged in commerce, unless
proved otherwise. The buyer knowledge will not prevent the enforcement of the
penalties set forth in this Law on the violator.
Article 13
The seller, whomever the product is distributed on his behalf, managers of
companies, cooperatives and establishments shall be liable for all violations of the
provisions of this Law, and each shall be subject to the penalties prescribed for
violators. If any of them proves that the violation has occurred due to reasons
beyond his control, the penalty shall be inflicted solely on the violatorwithout
prejudice to the joint liability with regard to payment of the fines sentenced.
Article 14
a. The employees of the Ministry of Commerce as well as the Ministry of
Municipal and Rural Affairs and any other governmental body, the Ministry
of Commerce decides to hire the employees thereof, shall be liable for
recording the violations of the provisions of this Law, and the Implementing
Regulations thereof, as well as investigating them. The appointment of these
employees shall be issued upon a decision by the Minister of Commerce after
obtaining the approval of their bodies.
The employees shall have the right to access the shops comprising the
commodities subject of the provisions of this Law, record the violations,and
seize the commodities subject of the violationas well as the related
documents, if needed. Also, the employees may take samples for analysis in
accordance with the provisions of the Implementing Regulations and may ask
the help of the police officers, if required.
b. The employees of municipalities shall be assigned to monitor the rapidlyrotten foodstuffsexisting in the markets, and size the spoilt items. The
Minister of Municipal and Rural Affairs shall determine by a decision such
foodstuffs, the measures of seizing them, and the way of disposing of them.
c. The employees referred to in the above-mentioned paragraphs (A) and (B)
shall have the right to confiscate or damage the commodity after verifying of
its rottenness or fraud in accordance with the provisions of the Implementing
Regulations, or the decision referred to in the paragraph (B) of this Article.
Article 15
Without prejudice to any harsher penalty set forth in any other Law, a fine of not
less than SR 10 thousand and not exceeding SR 50 thousand shall be imposed on
any person preventing the employees assigned to execute the provisions of this Law,
and the Implementing Regulations thereof, from performing their duties. If the
violator aims, by doing that, to conceal the violation, the shop must be judged to be
closed for a period of not less than 3 days and no exceeding 15 days in addition to
application of the previous penalty.
Article 16
Committees formed by the Minister of Commerce decision in the cities where the
Minister underscores the necessity of forming committees therein,shall be liable for
enforcement of the penalties set forth in this Law as well as the fulfillment of the
required investigations. Each committee shall be made up of 3 Saudi members,
comprising two members from the Ministry of Commerce and a member from the
Ministry of Municipal and Rural Affairs. At least one of the members must have a
businesslike experience. The Implementing Regulations shall determine the trial
procedures, issue the decisions, and notify the violators of such decisions.
Article 17
The decisions of the committeesreferred to in the aforementioned Article shall be
final after obtaining the approval of the Minister of Commerce except for the
penalty of imprisonment; given that, the appellant may file a complaint to the Board
of Grievances within 30 days from the date of notification. After being informed of
the complaint, the Ministry of Commerce shall refer the papers supported by its
view to the Board of Grievances whose verdict shall be final. If the appellant has not
filed a complaint within the mentioned period, the verdict shall be final after
obtaining the approval of the Minister of Commerce.
Article 18
The Minister of Commerce shall have the right to regulate by a decision the
measures that must be followed when offering general discountsin the commodities
prices offered in the shops to ensure seriousness and lack of fraud. This decision shall
include the determination of seasons and periods when the discounts are
offered.The penalties set forth in Article (1) shall be served by the violator of the
provision of the decision.
Article 19
Upon a proposal submitted by the Minister of Commerce, the Council of Ministers
may by a decision establish rules to offer financial incentives for the employees
assigned to apply the provisions of this Law and the Bylaws thereof and for those
who assist in the discovery of any commercial fraud or deception.
Article 20
Pursuant to the provisions of this Law and the Implementing Regulations thereof,
the Ministry of Commerce shall defame the violator, against whom a final verdict of
condemnationwas issued, at least in oneof the mass media. The publication fees shall
be paid by the sentenced person.
Article 21
The Minister of Commerce shall issue the required decisions and bylaws to bring
this Law into force.
Article 22
This Law shall supersede the Anti-Commercial Fraud Law issued upon the Royal
Decree no. (45) dated 14/8/1381H (corresponding to 21/1/1962).
Article 23
This Law shall be published in the Official Gazette and shall come into Force after
90 days from the date of publication.