In force Last amended 26/12/1442 AH
Saudi Anti-Fraud Law
نظام مكافحة الغش التجاري
Combats commercial fraud in Saudi Arabia. It defines the violations and forms of commercial fraud, covers seizure, investigation and trial, and sets penalties. It replaces the 1404 AH law.
- Articles
- 30
- In force
- 30
- Amended
- 5
- Issued
- 23/4/1429 AH
Issued by: مرسوم ملكي رقم (م/19) وتاريخ 1429/4/23هـ · قرار مجلس الوزراء رقم (119) وتاريخ 1429/4/22هـ.
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
Browse Anti-Fraud Law by topic
Definition of a Counterfeit or Adulterated Product2 articlesCommercial Fraud and Deception Offenses2 articlesObligations of Producers, Importers and Distributors3 articlesLicensing of Sales Discounts and Commercial Contests2 articlesDetecting Fraud Violations and Taking Samples5 articlesRewards for Reporting Commercial Fraud2 articlesInvestigation, Prosecution and Liability6 articlesPenalties for Commercial Fraud9 articlesImplementing Regulations and Entry into Force3 articles
Articles of the Saudi Anti-Fraud Law
الفصل الأول: التعريفاتArticles 1–1
الفصل الثاني: المخالفاتArticles 2–4
- Article 2The article lists the acts that violate the Anti-Commercial Fraud Law, from deceiving about a product and adulterating it to selling, possessing, importing or packaging it in breach of the specifications.
- Article 3The article requires the producer, importer or distributor of an adulterated product he has circulated to notify the Ministry of its quantity and the names and addresses of the merchants supplied, immediately on learning of it, being notified, or the seizure report.
- Article 4The article prohibits price reductions on products or commercial contests by any means without a license from the Ministry.
الفصل الثالث: الضبط والتحقيق والمحاكمةArticles 5–15
- Article 5يتولى موظفون من الوزارة، ووزارة الشئون البلدية والقروية، والهيئة العامة للغذاء والدواء– يصدر بتعيينهم قرار من الوزير بعد موافقة جهاتهم–…Amended
- Article 6The article allows a judicial police officer, where he has strong grounds to believe a violation exists, to take samples of the suspected product and draw up a seizure report in accordance with the Regulations.
- Article 7The article bars the merchant from dealing with the suspected product before the examination result clearing it appears.
- Article 8The article requires the competent authority to examine the product and release the result within fifteen days at most for food products, leaving it to the Regulations to set periods for other products.
- Article 9The article prohibits preventing judicial police officers from inspecting, seizing, entering premises and taking samples, requires them to prove their status, and allows them to close the shop until the merchant lets them in.
- Article 10The article provides for rules, issued by Council of Ministers resolution, under which financial rewards are given to the enforcement employees referred to in Article 5.
- Article 11The article gives a non-enforcement person who helps uncover commercial fraud an incentive reward of up to 25% of the fine collected, if this leads to catching and convicting the violators.
- Article 12The article makes investigation and public prosecution of violations of the Anti-Commercial Fraud Law the competence of the Bureau of Investigation and Public Prosecution.
- Article 13The article makes the competent court the body that adjudicates all violations of the Law, its disputes and compensation claims arising from its application.Amended
- Article 14The article presumes that every violator knew the product was adulterated, and provides that the buyer's knowledge of the fraud does not prevent punishing the violator.
- Article 15The article makes the seller, those who market the product on whose behalf, and the managers of companies, associations, establishments and shops liable for the Law's violations, unless one proves the violation occurred for a reason beyond his control.
الفصل الرابع: العقوباتArticles 16–27
- Article 16The article punishes anyone who commits one of the Article 2 violations with a fine of no more than SAR 500,000, or imprisonment of no more than two years, or both.
- Article 17The article punishes anyone who runs price reductions or commercial contests without a Ministry license with a fine of no more than SAR 50,000, or imprisonment of up to six months, or both.
- Article 18The article raises the penalty to SAR 1 million, three years' imprisonment, or both, for deception using false scales, health-harming fraud, or violating Articles 3, 7 and 9.
- Article 19The article punishes anyone who deals with held products with a fine equal to their value, without prejudice to the penalties provided for in Article 18.
- Article 20The Article allows the court to order the offending shop closed for up to one year for the Article 2 violations, in addition to the other penalties in the Law.
- Article 21The Article provides that once a product is proven adulterated it is destroyed or disposed of appropriately and the tools used in the fraud are confiscated, with the Regulations setting how.
- Article 22The Article requires the offender to withdraw the adulterated product and refund its value to the buyer as set by the Regulations, without prejudice to the injured party's right to compensation.
- Article 23The Article allows the Public Prosecution to request a travel ban until the final judgment, and the Ministry of Interior to deport a non-Saudi finally convicted of an Article 2 violation.Amended M/109
- Article 24The Article doubles the maximum penalty for a repeat violation within five years of the final judgment, and adds a ban from commercial activity of up to five years for a further repeat.
- Article 25The Article requires a summary of a prison judgment under the Law to be published at the offender's expense, allows publication for other penalties, in a way the court sets once the judgment is final.Amended
- Article 26The penalties in the Anti-Commercial Fraud Law apply to anyone who took part in committing the violation or incited it.
- Article 27In necessity or urgency the Minister may order precautionary seizure of a product suspected of adulteration and its withdrawal from markets, with the order put to the court within 72 hours.Amended
الفصل الخامس: أحكام ختاميةArticles 28–30
- Article 28The Article directs the Minister to issue the Law's Implementing Regulations and publish them in the Official Gazette within ninety days of the Law's issuance.
- Article 29The Article provides that this Law replaces the Anti-Commercial Fraud Law issued by Royal Decree No. (M/11) dated 29/5/1404 AH.
- Article 30The Article provides for the Law to be published in the Official Gazette and to take effect ninety days after its publication.