Decree Law No. 42 of 2023 regarding the Combating of Commercial Fraud has been issued.

His Highness Sheikh Mohammed bin Zayed Al Nahyan, the President of the State, issued Decree Law No. 42 of 2023 regarding the Combating of Commercial Fraud.

Objectives:

Combat counterfeiting and commercial fraud, establish controls against trade in counterfeit goods and create a business environment supporting intellectual property rights.

Scope:

Applies to individuals engaging in commercial fraud within the country, including free zones.

Prohibitions:

Strictly prohibits the import, sale, production, display, etc., of fraudulent goods. Violations include importing, exporting, or engaging in deception regarding goods’ type, value, origin, etc.

Withdrawal and Destruction:

Suppliers must withdraw fraudulent goods; the authority may dispose of them at the supplier’s expense. Suppliers bear costs related to withdrawal and destruction.

Knowledge of Dealer:

Suppliers are penalized if aware of the fraudulent nature of goods.

Obligations:

Suppliers must refund/exchange goods, submit commercial books, and provide clear information on goods.

Inspection and Prevention:

Judicial officers can inspect commercial premises at any time to ensure occupational health and safety. Suppliers cannot obstruct inspections.

Closure and Shops:

Minister or delegate may close shops in cases of urgency; must present the matter to the competent court within 10 working days.

Supreme Committee for Combating Commercial Fraud:

Establishment of the Higher Committee for Combating Commercial Fraud, reporting to the Minister.

List of Administrative Penalties:

Outline of administrative penalties for violations of the decree law, its executive regulations, and related decisions.

Administrative Penalties:

In addition to specified penalties, offenses in Articles (4), (5), and (8) may result in imprisonment or fines. Penalties for offenses under Article (17) may include imprisonment and fines under specific circumstances. The competent court can order the confiscation or destruction of counterfeit goods and may close the business or premises for up to six months.

Punishment of Individuals Responsible for Entities:

Individuals managing violating entities may be punished if aware of the crime and fail to take necessary measures. The person responsible for actual management is jointly liable for fines if the crime was committed by their agents.

Recidivism:

Penalties for specified offenses are doubled in case of recidivism, with an additional penalty of closing the location for up to one year.

Reconciliation:

The Ministry or competent authority may reconcile violations by accepting payment not less than twice the maximum fine stipulated in the Administrative Penalties Regulations.

Grievances and Appeals against Decisions:

Interested parties can submit written grievances against decisions within 15 working days. The grievance will be decided within 30 days, and the decision is final. The complainant may appeal the decision to reject the grievance before the competent court within 30 days.

Cancellations:

Repeal of Federal Law No. (19) of 2016 on combating commercial fraud and related provisions. Regulations and decisions based on Federal Law No. (19) of 2016 continue until replaced, unless conflicting with this Decree Law.

Issuing Executive Regulations and Organizing Decisions:

The Council of Ministers will issue executive regulations and necessary decisions for decree law implementation within six months of its enactment.