Article 20 of the Saudi Anti-Fraud Law
المادة 20 من نظام مكافحة الغش التجاري · الفصل الرابع: العقوبات
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 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 20 explained in plain English
This Article adds a penalty that affects the business itself: closing the offending shop. Its provisions:
- Discretionary: the phrase "may order" means closure is not automatic; the court decides according to the case.
- Length of closure: not more than one year.
- Scope: only the violations set out in Article 2, which include deception about a product's identity, source or quantity, adulteration of a product, selling, displaying, possessing for trade or importing an adulterated product, and making products that do not meet the approved standard specifications.
- Additional: the phrase "without prejudice to the penalties provided for in this Law" means closure can be ordered alongside the fine or imprisonment, not instead of them.
This Article comes after Article 19, which punishes anyone who disposes of seized products with a fine equal to their value, and before Article 21, under which proof that a product was adulterated leads to its destruction or disposal and the confiscation of the tools used in the fraud. So an offender may face several penalties in a single case.
Closing a shop can hit a merchant harder than the fine itself because income stops. Anyone facing this risk would do well to consult a lawyer who specializes in commercial or criminal cases.
Practical example
It is proven that a spice shop in Mecca sells blends labeled with ingredients that are not in them. The court may order the shop closed for up to one year, in addition to any other penalties it imposes under the Law.
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 20 of the Saudi Anti-Fraud Law
Can a shop be closed for commercial fraud?
Yes. The court may order the offending shop closed for the violations set out in Article 2.
How long can the offending shop be closed for?
For a period not exceeding one year.
Does closure replace the fine?
No. Closure is without prejudice to the other penalties provided for in the Law.
Articles this article refers to
More articles on Penalties for Commercial Fraud
- Article 16
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.
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 الن
- 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 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.