Her Excellency Safeya Al Safi, Assistant Undersecretary for the Commercial Control and Governance Sector at the Ministry of Economy and Tourism, affirmed that the UAE, under the guidance of its wise leadership, has made great strides in developing an advanced legislative and regulatory system to strengthen the commercial fraud control framework, safeguard market integrity, protect consumer rights, and provide an attractive and secure business climate for investors and trademark owners, particularly given that the UAE currently offers more than 2,000 economic activities to its business community to engage in.
Combating commercial fraud: A fundamental pillar in embedding efficiency and transparency in the business environment
Her Excellency Safeya Al Safi said: “Combating commercial fraud represents a fundamental pillar for consolidating a national economy that is efficient and transparent, and that stimulates investment and innovation. In this regard, the issuance of the Executive Regulations of the Anti-Commercial Fraud Law is a new milestone in developing market control mechanisms in line with best practices, enhancing consumer protection against counterfeit and fake goods, and regulating seizure and inspection procedures. These measures support the compliance of establishments and companies with relevant laws and decisions and strengthen the confidence of the business community and investors in the UAE’s business environment, in line with the objectives of the ‘We the UAE 2031’ vision.”
A regulation that keeps pace with rapid market developments and modern trade patterns
Her Excellency Safeya Al Safi stated that the Regulation has been prepared and developed to keep pace with rapid market developments and modern trade patterns. It reinforces the competitiveness of the internal trade system by supporting the country’s efforts to combat unlawful commercial practices, including those related to e-commerce, enhancing coordination between competent national authorities and bodies. It further improves law enforcement efficiency, which underpins market integrity and strengthens the UAE’s position as a leading global hub for economy and business.
The Assistant Undersecretary further explained that the issuance of the Executive Regulations of the Anti-Commercial Fraud Law underscores the UAE’s commitment to continuing the development of its legislative structure, as the provisions of this Regulation provide a comprehensive legislative and regulatory framework for addressing commercial fraud relating to goods and commodities. She emphasised that there will be zero tolerance towards any commercial fraud practices or trading of counterfeit and fake goods in the markets, and that the Ministry will implement the provisions of the Regulation efficiently and effectively in coordination and partnership with the competent authorities.
Ministry’s efforts to combat commercial fraud in the UAE
Her Excellency Safeya Al Safi said: “The Ministry of Economy and Tourism continues its efforts to strengthen cooperation with its partners in the public and private sectors, and to develop legislative and supervisory frameworks to combat commercial fraud and protect markets and consumers from improper commercial practices, thereby safeguarding the rights of consumers and trademark owners. In this regard, the Ministry, in collaboration with local economic and supervisory authorities, conducted 10,023 inspection tours relating to commercial fraud during the first quarter of 2026, which resulted in the detection of 189 violations across the UAE.”
Her Excellency added: “Over the past period, the Ministry has worked to enhance compliance with legislation and policies relating to combating commercial fraud in the UAE’s markets by combining the legislative, supervisory, and modern technological tools, implementing periodic inspection campaigns, developing intelligent systems to monitor market activity and analyse data to detect potential violations, and continuously tracking the prices of basic commodities to ensure market stability through the price monitoring system.”
Expanded joint campaigns to combat counterfeit, adulterated, and non-conforming goods
Her Excellency Safeya Al Safi indicated that the Ministry of Economy and Tourism has been keen to enhance cooperation with supervisory authorities and bodies at both the federal and local levels, particularly economic departments, e-commerce platforms, and sales outlets, to implement expanded joint campaigns to combat counterfeit, adulterated, and non-conforming goods, with regular market monitoring and ensuring that commercial establishments adhere to approved legislation and requirements.
Key provisions of the Executive Regulations of the Anti-Commercial Fraud Law
The Executive Regulations of the Anti-Commercial Fraud Law include a set of provisions aimed at strengthening efforts to combat commercial fraud in the UAE and enhancing the efficiency of market oversight, the most notable of which are:
- Enhancing proactive market oversight by regulating inspection procedures, detecting violations, and dealing with counterfeit goods in accordance with clear and effective procedures.
- Regulating procedures for the custody of seized items and their disposal in accordance with prescribed controls, ensuring their preservation and preventing their re-circulation or leakage into the markets, in addition to regulating procedures for their destruction.
- Enhancing coordination and data exchange between the Ministry and the competent authorities regarding the measures taken.
- Regulating the application of administrative penalties in cases prescribed by law, thereby raising compliance levels and deterring unlawful commercial practices.
- Strengthening governance and transparency principles by documenting procedures and ensuring traceability and accountability at all stages of dealing with seized items.
Immediate procedures for withdrawing adulterated, spoiled, and counterfeit goods from the markets
The Executive Regulations prescribe specific procedures for dealing with adulterated, spoiled, or counterfeit goods, which include the following:
- Requiring the supplier to immediately cease selling or offering the items, and to withdraw them from the markets and warehouses within 24 hours from the date of receipt of the notification addressed by the Ministry or the competent authority, as the case may be.
- Notifying all points of sale and entities to which the goods were supplied of the obligation to withdraw them within 24 hours from receipt of the notification, taking the necessary measures to recover and withdraw them from circulation, and providing the Ministry or the competent authority with evidence of the implementation of the notification, withdrawal, and recovery procedures.
- Publicly announcing the withdrawal of adulterated, spoiled, or counterfeit goods from the UAE’s markets within 48 hours from the date of receipt of the notification, through the media designated by the Ministry or the competent authority, as the case may be, with a commitment to clearly set out the goods’ details, provided that the announcement is in both Arabic and English. The Ministry or the competent authority may shorten this period in cases warranting such action, particularly if the goods pose risks to human or animal health or safety, or to the environment.
- The Ministry or the competent authority, as the case may be, shall take custody of the adulterated, spoiled, or counterfeit goods in designated places allocated for this purpose, at the violator’s expense, and shall prevent their disposal in any manner, while informing and warning the public against purchasing or using them, specifying their type, description, and the trademarks they bear.
- In case the supplier fails to comply with the withdrawal procedures within the specified timeframes, the Ministry or the competent authority, as the case may be, shall, within the following 48 hours, take the necessary measures to withdraw the goods from the markets and warehouses at the supplier’s expense. If the supplier cannot be reached and notified, the Ministry or the competent authority shall undertake the withdrawal within a period not exceeding 48 hours from the date the presence of the goods is established, and shall recover the expenses and costs incurred from the supplier once contacted.
Integrated framework for safe disposal and destruction of adulterated, spoiled, or counterfeit goods
The Ministry of Economy and Tourism noted that the Executive Regulations have established an integrated framework for dealing with adulterated, spoiled, or counterfeit goods, ensuring the regulation of their disposal through use or recycling in accordance with prescribed provisions. In addition, they ensure the regulation of the cases and procedures for their destruction so as to prevent their reuse, recirculation, or exploitation.
The Supreme Committee for Combating Commercial Fraud shall consider applications for use, recycling, or destruction before the matter is referred to the competent court. The court will consider such applications after the case has been referred to it or a judicial ruling has been issued thereon.
In detail, the Regulation permits the Ministry, on its own initiative or upon the request of the competent authority, as the case may be, to request from the competent court or the Supreme Committee for Combating Commercial Fraud that the seized goods, for which no destruction decision has yet been issued, be recycled, where such recycling is feasible and achieves environmental or economic benefits, or for any other considerations that the competent court or the Supreme Committee deems appropriate. It also permits the request for recycling of goods for which a destruction judgment or decision has been issued, in accordance with the prescribed legal controls.
In cases where the supplier withdraws adulterated, spoiled, or counterfeit goods, and such goods are re-exportable and do not pose risks to human or animal health or safety, or to the environment, and no decision or judgement has been issued by the Supreme Committee for Combating Commercial Fraud or by the competent court for their destruction, the Regulation obliges the supplier to return them to the country of origin or the exporting country within 30 days from the date of seizure, at the supplier’s own expense. The Ministry or the competent authority, as the case may be, shall undertake their destruction, return to the country of origin or exporting country, or disposal in accordance with the Regulation’s provisions, at the supplier’s expense, if the supplier fails to return them for any reason.
In cases of destruction, the Ministry or the competent authority shall execute the destruction operations based on a judgment of the competent court or a decision of the Supreme Committee for Combating Commercial Fraud. These steps include the formation of a joint team to carry out the destruction or contracting with an approved specialised entity to execute it in accordance with approved controls, with all stages of the process being documented in official records. The destruction shall be carried out within 15 working days from the date of issuance of the destruction judgment or the decision of the Supreme Committee, unless the competent court or the Supreme Committee specifies otherwise.
Regulation of administrative penalties to enhance compliance and combat commercial fraud
The Regulation includes specific provisions for the imposition of administrative fines on traders who are proven to have known, or who ought to have known by virtue of their profession, trade, or expertise, that adulterated, spoiled, or counterfeit goods, or materials used in their adulteration, are harmful to human or animal health and safety.
These cases include those where the goods or materials used in their adulteration relate to pharmaceutical drugs, agricultural produce, or organic food products; or the re-circulation or reintroduction for consumption of adulterated or spoiled goods despite it being established that they are unfit for use; or the purchase of adulterated, spoiled, or counterfeit goods with the intent to trade in them and make unlawful gain therefrom, whether by offering them for resale in their original state or after modifications or recycling. They also include the commissioning of any act of misleading or deceptive promotion, marketing, or advertising in respect thereof, or the provision of incorrect or false data concerning their nature, quality, origin, or components, all without prejudice to any more severe penalty prescribed under the Anti-Commercial Fraud legislation.
Conciliation procedures and controls
The Regulation also sets out the conciliation procedures and controls, whereby it permits the violator or their representative to submit a conciliation request to the Ministry of Economy and Tourism or the competent authority within 10 working days from the date of notification of the violation and the applicable financial penalty, or from the date of rejection of the objection. The Ministry or competent authority shall examine the request and decide thereon within 15 working days from the date of its submission, by way of a reasoned decision either accepting or rejecting the request. A failure to decide on the request within this period shall be deemed a rejection.
In case of approval of the conciliation request, a date shall be set for signing the conciliation record and settling the conciliated amount within five working days from the date of signing. The Regulation further stipulates, for the conclusion of conciliation, that no penalty has previously been imposed on the violator under the Anti-Commercial Fraud Law during the past 12 months before the violation subject to conciliation, and that the violation was committed by mistake or negligence rather than in bad faith or by deliberate act, with the removal of the causes of the violation and the deposit of the conciliation amount prior to its approval.
Moreover, the Regulation permits the violator to object to the decision rejecting conciliation before the same authority within seven working days from the date of notification of the rejection of the request, provided that the Ministry or competent authority, as the case may be, decides on the objection within 10 working days from the date of its submission, and the objection shall be deemed rejected if no decision is made thereon within this period. The Regulation further affirms that conciliation does not mean the act is not considered a violation, nor does it relieve the party causing the violation from civil liability for any damages arising therefrom.
The Ministry of Economy and Tourism affirmed that the objective of the Regulation is not limited to the imposition of penalties, but extends to fostering a culture of compliance, supporting compliant commercial establishments, and raising the level of consumer protection. These measures contribute to enhancing market competitiveness and bolstering the confidence of investors and traders in the UAE’s business environment.
The Ministry also calls upon commercial establishments, trading companies, suppliers, and distributors to adhere to the provisions and requirements of the Regulation. It also encourages consumers to report any non-compliant practices, as they are key partners in safeguarding markets and reinforcing efforts to combat commercial fraud.
