Article 16 of the Saudi Anti-Fraud Law
المادة 16 من نظام مكافحة الغش التجاري · الفصل الرابع: العقوبات
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
يعاقب بغرامة لا تزيد على خمسمائة ألف ريال، أو السجن مدة لا تزيد على سنتين، أو بهما معًا، كل من ارتكب إحدى المخالفات المنصوص عليها في المادة (الثانية) من هذا النظام.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 16 explained in plain English
This is the basic penalty for commercial fraud violations. It applies to anyone who commits one of the violations set out in Article 2, including:
- Deceiving or attempting to deceive about the identity, source or quantity of the product.
- Adulterating a product or attempting to adulterate it.
- Selling, displaying, possessing with intent to trade, or importing an adulterated product.
- Manufacturing products that violate the approved standard specifications, using containers or labels that violate them, and packing, storing or transporting the product in breach of them.
- Importing, making, printing, possessing or selling packaging, wrappers or printed matter used in fraud.
The prescribed penalty is:
- a fine of no more than SAR 500,000, or
- imprisonment of no more than two years, or
- both the fine and imprisonment.
The figures stated are upper limits, so the court may set the penalty below them according to the case. After it comes Article 17, which sets a separate and lighter penalty for violating Article 4 on licensing discounts and contests, namely a fine of no more than SAR 50,000 or imprisonment of no more than six months or both.
Anyone accused of one of these violations would do well to consult a lawyer specialized in criminal cases before the investigation and trial.
Practical example
It is established that a small factory in the Eastern Province fills cooking oil into containers that violate the approved standard specifications and sells it. The court may punish the person responsible with a fine of no more than SAR 500,000 or imprisonment of no more than two years or both.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 16 of the Saudi Anti-Fraud Law
What is the penalty for commercial fraud in Saudi Arabia?
A fine of no more than SAR 500,000, or imprisonment of no more than two years, or both, for anyone who commits one of the Article 2 violations.
Can imprisonment and a fine be combined?
Yes. The article permits a sentence of a fine or imprisonment or both.
Is the fine fixed at SAR 500,000?
No. That is its upper limit, and the fine may not exceed it.
Articles this article refers to
More articles on Penalties for Commercial Fraud
- Article 17
The 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.
يعاقب بغرامة لا تزيد على خمسين ألف ريال، أو السجن مدة لا تزيد على ستة أشهر، أو بهما معًا كل من ارتكب المخالفة المنصوص عليها في المادة (الرابعة).
- Article 18
The 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.
يعاقب بغرامة لا تزيد على (1.000.000) مليون ريال، أو بالسجن مدة لا تزيد على ثلاث سنوات، أو بهما معًا – في الحالتين الآتيتين: 1- إذا اقترن فعل الخداع - أو الشروع
- Article 19
The 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.
مع عدم الإخلال بالعقوبات المنصوص عليها في المادة (الثامنة عشرة) من هذا النظام يعاقب من يتصرف بمنتجات محجوزة بغرامة تعادل قيمتها.
- Article 20
The 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.
مع عدم الإخلال بالعقوبات المنصوص عليها في هذا النظام، يجوز الحكم بإغلاق المحل المخالف مدة لا تتجاوز سنة في المخالفات المنصوص عليها في المادة (الثانية) من هذا ال
- Article 21
The 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.
يترتب –في جميع الأحوال– على ثبوت غش المنتج إتلافه أو التصرف فيه بأي طريقة مناسبة، ومصادرة الأدوات التي استعملت في الغش أو الخداع. وتبين اللائحة كيفية التصرف فيه
- Article 24
The 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.
إذا عاد المخالف إلى ارتكاب أي من المخالفات المنصوص عليها في هذا النظام خلال خمس سنوات من تاريخ صدور الحكم نهائيًّا، يعاقب بعقوبة لا تزيد على ضعف الحد الأعلى للع
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.