Article 4 of the Saudi Anti-Fraud Law
المادة 4 من نظام مكافحة الغش التجاري · الفصل الثاني: المخالفات
The article prohibits price reductions on products or commercial contests by any means without a license from the Ministry.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يجوز إجراء تخفيضات في أسعار المنتجات، أو إجراء مسابقات تجارية بأي وسيلة من الوسائل، دون الحصول على ترخيص من الوزارة.
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 4 explained in plain English
This article sets a clear rule: no discounts and no commercial contests without a license from the Ministry. The Ministry, under Article 1, is the Ministry of Commerce and Industry.
The prohibition covers two things:
- Price reductions on products, that is, announcing reduced prices to customers.
- Commercial contests, that is, contests that a merchant runs for commercial purposes.
The phrase "by any means" means that the prohibition is not limited to a particular means, so it covers announcing the reduction or the contest inside or outside the shop or by any other means. The article does not set out the conditions or procedures for the license; these are known from the Ministry and from the related implementing provisions.
From the article's position among the Law's provisions, the aim appears to be protecting the consumer from discounts and contests run without oversight. The obligation here falls on whoever runs the discount or contest, and the license must be obtained before it is run, not after. This article comes after Article 3 on the duty to notify about an adulterated product, and before Article 5, which specifies the employees who handle detecting and establishing violations of the Law, including a violation of this article.
Any shop or online store planning a sales season or a promotional contest should therefore obtain the license first. Anyone with a special situation can consult a lawyer specialized in commercial cases.
Practical example
A clothing shop in Riyadh wants to announce "50% off everything on display" for a week, along with a prize draw for those who buy above a certain amount. It must obtain a license from the Ministry for both the discount and the contest before launching them.
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 4 of the Saudi Anti-Fraud Law
May a shop run discounts without a license?
No. The article prohibits price reductions on products without a license from the Ministry.
Do commercial contests need a license?
Yes. Commercial contests by any means require a license from the Ministry.
Who detects discounts run without a license?
Article 5 specifies the employees who handle detecting and establishing violations of the Law; they are employees of the Ministry, the Ministry of Municipal and Rural Affairs and the Food and Drug Authority.
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.

