Violations of the Anti-Commercial Fraud System
Rapid economic development, particularly in the field of technology and the emergence of e-commerce, has helped revive trade in Saudi Arabia. With the increasing demand for commercial products, it has become difficult to know the differences between original and counterfeit products. This is due to the greed of some merchants who prefer financial gain over quality.
In addition, counterfeit products become more dangerous when they cause harm that threatens the safety and lives of citizens. Therefore, the Ministry of Commerce stressed the need to file a commercial report against violators of the Anti-Commercial Fraud Law and other commercial regulations that protect consumers and maintain the stability of the system.
In this article, we review what is commercial fraud? What are the penalties for violating the provisions of the system? What are the criminal procedures? How to file a complaint against a shipping company? What is the method of filing a report on an online store?
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Violations of the Anti-Commercial Fraud System
What is commercial fraud?
It is any adulterated product that has been altered or tampered with, causing it to lose part of its material or moral value, whether through addition, reduction, manufacturing, etc. A spoiled product is considered a type of commercial fraud if it is unfit for use, exploitation, or consumption, in addition to products that do not conform to approved standard specifications.
Examples of commercial fraud
The Commercial Fraud Law stipulates the forms of commercial fraud committed by merchants, which are as follows:
Deception occurs in:
The nature, type, elements or intrinsic qualities of the product.
Product source (from which country it was made)
The amount of product by weight, size, or number.
Product fraud.
Selling or displaying the counterfeit product.
Possession of the adulterated product for the purpose of trade.
Manufacture, produce, possess, sell or display products that violate approved standard specifications.
Using packages, envelopes, etc. in violation of approved standard specifications in order to prepare and prepare the product prepared for sale.
Packing, transporting or storing the product in violation of approved standard specifications.
Importing, making, possessing or selling packages, covers or prints used for fraud.
Importing counterfeit products.
What are the merchant’s obligations in the commercial fraud system?
The merchant is obligated to comply with the anti-commercial fraud system and not violate it. These obligations include the following:
Inform the Ministry of information related to the adulterated product.
Inform the Ministry of the names of the merchants to whom the goods were sent immediately upon learning or being informed of the violation.
Violations of the Anti-Commercial Fraud System | Legal risks that threaten the reputation of establishments
What are the penalties for violating the provisions of the Anti-Commercial Fraud System?
The Anti-Commercial Fraud System imposes strict penalties on violators of the system in the following detail:
Anyone who commits a form of commercial fraud, such as deceiving the consumer about the nature or source of the product, selling a fraudulent product, manufacturing products or using packaging or packing a product that violates approved specifications and standards, importing packaging or wrappers for use in fraud, or importing fraudulent products, shall be punished with a fine not exceeding 500 thousand Saudi riyals or imprisonment for a period not exceeding two years, or both penalties, in addition to closing the violating store for a period of one year.
Anyone who makes discounts on product prices or holds commercial competitions without obtaining a license from the Ministry of Commerce shall be punished with a fine not exceeding 50,000 Saudi riyals or imprisonment for a period not exceeding six months, or both penalties.
The penalty shall be a fine not exceeding one million Saudi riyals or imprisonment for a period not exceeding three years if the following violations are committed:
If the deception is committed with the use of fake scales, gauges, or inspection machines, or the use of methods and means that give incorrect results about the weight, measurement, or product, or if the product is harmful to human health.
If the merchant does not inform the Ministry of Commerce if he learns that the product he sold in the market is counterfeit.
Dispose of the suspected product before the test result appears.
Inspectors were prohibited from carrying out their work in inspecting factories and taking samples of products.
The penalty shall be doubled in the event of re-committing one of the stipulated forms of crimes five years after the date of issuance of the ruling, and he shall be prohibited from practicing commercial work for a period not exceeding five years.
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What are the criminal procedures in the Saudi anti-commercial fraud system?
When a complaint or report is received, or during an inspection tour conducted by inspectors from the Ministry of Commerce and the competent authorities, commercial fraud violations are detected and proven.
Seizing and seizing products suspected of violating the provisions of the system and withdrawing samples of the products for examination.
Violations are referred to the Public Prosecution after they are proven to complete the case procedures in court.
Confiscate and destroy the product if it is proven to be adulterated.
How to file a complaint against a shipping company?
First, contact the shipping company responsible for this to resolve the issue. If the complaint is not responded to, it will be submitted to the General Transport Authority, which will process the complaint against the shipping company. You can also contact the commercial fraud number designated by the Ministry of Commerce to report commercial fraud violations and consumer protection.
How to file a complaint on a website?
A complaint can be submitted to the Ministry of Commerce on any website that violates the Ministry’s regulations and requirements via the Trade Complaints Number (1900)
How to file a report on an online store?
The Ministry of Commerce has provided a commercial reporting service to report violations committed by merchants by following the following steps:
Visit the Ministry of Commerce website.
Click Start Service.
Download the commercial report application.
Log in via the national unified access.
Choose a new report.
Specify the type of report “online store”
Determine if it is trusted by the Saudi Business Center or if the store has a commercial register.
Determine the type of violation.
Fill in facility data.
Fill in the report description and product name.
Attach the required documents.
Approval and acknowledgment
Submit a commercial report No. to inquire about the status of the report later.
Violations of the Anti-Commercial Fraud System
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The need for a commercial lawyer among them has become extremely important due to the existence of a number of commercial cases that are not heard before the court except in the presence of a competent commercial lawyer.
A commercial lawyer provides legal services in drafting and reviewing commercial contracts and agreements, writing legal memoranda, defenses, and objections, pleading on behalf of his client and attending court sessions on time, settling commercial disputes amicably, such as commercial arbitration and conciliation, in addition to providing thorough legal advice to protect the client’s commercial rights.
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