Article 17 of the Saudi Anti-Fraud Law
المادة 17 من نظام مكافحة الغش التجاري · الفصل الرابع: العقوبات
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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).
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 17 explained in plain English
This article sets the penalty for the violation provided for in Article 4, which is running price reductions on products or commercial contests by any means without obtaining a license from the Ministry.
The prescribed penalty is:
- a fine of no more than SAR 50,000, or
- imprisonment of no more than six months, or
- both.
These are upper limits, so the court may sentence below them according to the circumstances of the violation. Note that this penalty is lighter than the one Article 16 prescribes for the fraud violations in Article 2 (a fine of no more than SAR 500,000 or imprisonment of no more than two years or both), because running a discount without a license is a regulatory violation that does not necessarily involve fraud in the product itself.
Even so, the penalty may include imprisonment, so it should not be taken lightly. It is followed by Article 18, which prescribes a more severe penalty for other specified cases.
Shops and online stores should therefore make sure to obtain the license before launching any discount offer or contest. Anyone charged with this violation would do well to consult a lawyer specialized in commercial or criminal cases.
Practical example
An online electronics store in Jeddah launched a "Friday contest" with prizes for buyers without a license from the Ministry. This exposes it to a fine of no more than SAR 50,000 or imprisonment of no more than six months 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 17 of the Saudi Anti-Fraud Law
What is the penalty for running discounts without a license?
A fine of no more than SAR 50,000, or imprisonment of no more than six months, or both.
Does the penalty cover commercial contests?
Yes. Article 4, which this article punishes, covers discounts and commercial contests together.
Is the penalty for discounts lighter than the penalty for fraud?
Yes. The penalty for the Article 2 violations in Article 16 goes up to SAR 500,000 or two years' imprisonment.
Articles this article refers to
More articles on Licensing of Sales Discounts and Commercial Contests
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.