New commercial fraud regulations come into force in the UAE today

The UAE has implemented new commercial fraud regulations today, effective immediately. Suppliers are now required to cease selling or displaying any non-compliant product and recall counterfeit, adulterated, or spoiled goods from markets and warehouses within 24 hours of receiving an official notification. Article 5 of the decision outlines the recall mechanisms, stating that the Ministry of Economy and Tourism or the relevant authority can initiate procedures to stop selling and displaying the goods upon establishment of adulterated, spoiled, or counterfeit goods.

The supplier must then withdraw the goods from markets and warehouses within 24 hours and inform all sales outlets and entities supplied with the goods to recall them. The Ministry or competent authority must seize adulterated, spoiled, or counterfeit goods and store them in designated locations at the violator's expense, prohibiting disposal in any manner.

The public must be warned against purchasing or using such goods, with details of their type, specifications, and trademarks provided. If a supplier fails to recall the goods within 24 hours, the Ministry or competent authority must remove them from markets and warehouses, at the supplier's expense, within the following 48 hours.

An administrative fine may be imposed on individuals knowingly dealing in commercial fraud, with penalties of up to Dh2 million.