Article 21 of the Saudi Anti-Fraud Law
المادة 21 من نظام مكافحة الغش التجاري · الفصل الرابع: العقوبات
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 فيها.
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 21 explained in plain English
This Article sets out what happens to the adulterated product and the tools of the fraud once the fraud is proven. Its provisions:
- In all cases: this consequence applies whenever a product is proven adulterated, whatever the main penalty is.
- The adulterated product: it is destroyed or disposed of in any appropriate way.
- Tools of the fraud or deception: the tools used in the fraud or deception are confiscated, such as machines, scales or containers used for it.
- Details: the Implementing Regulations set how the product and the tools are to be disposed of.
The text does not say when destruction is chosen and when another form of disposal is, which the Implementing Regulations deal with. The aim of the provision is clear: to keep the adulterated product from returning to the market and to deprive the offender of the means used in the fraud.
This Article comes after Article 20, which allows the court to order the offending shop closed for up to one year, and before Article 22, which requires the offender to withdraw the adulterated product and return its value to the buyer. So the offender may lose the goods and tools, have the shop closed, and have to refund the price of what was sold.
Anyone who objects to the destruction or confiscation measures can consult a lawyer who specializes in commercial cases.
Practical example
It is proven that a workshop in Riyadh refills used engine oil into new containers. As a result, the adulterated oil is destroyed or disposed of appropriately, and the filling machines and containers used in the fraud are confiscated.
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 21 of the Saudi Anti-Fraud Law
What happens to adulterated goods once the fraud is proven?
They are destroyed or disposed of in any appropriate way, and the Implementing Regulations set how.
Are the tools of the fraud confiscated?
Yes. The tools used in the fraud or deception are confiscated.
Does destruction apply in every case?
The Article provides that this follows in all cases once the adulteration of the product is proven.
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 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 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.