Article 16 of the Saudi Trade Names Law
المادة 16 من نظام الأسماء التجارية · الفصل الرابع: المخالفات
The article provides for one or more committees formed by Ministerial decision to consider violations and impose penalties, and lets the Minister specify violations for which the penalty may be imposed directly.
Official text (Arabic)
This article has not been amended since the law was issued.
تكوّن بقرار من الوزير لجنة (أو أكثر) من أعضاء لا يقل عددهم عن (ثلاثة)، ويرأسها ذو تأهيل نظامي، وتختص بالنظر في المخالفات وإيقاع العقوبة المنصوص عليها في المادة (الرابعة عشرة) من النظام، ويكون للوزير تحديد المخالفات التي يجوز إيقاع عقوبات مباشرة بشأنها دون عرضها على اللجنة. وتصدر قواعد عمل اللجنة وتحدد مكافآت رئيسها وأعضائها وأمانتها، بقرار من الوزير.
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 article specifies the body that considers violations and imposes penalties:
- Formation of the committee: One or more committees are formed by decision of the Minister of Commerce, each with no fewer than 3 members and chaired by a person with legal qualifications (that is, qualified in law and regulations).
- Jurisdiction: Considering violations and imposing the penalty provided for in Article 14, which is a fine not exceeding SAR 50,000 that may be doubled for repeat violations.
- Direct penalties: The Minister may specify violations for which penalties may be imposed directly without referring them to the committee. So not every violation necessarily goes through the committee.
- Organizing the committee's work: Its work rules and the rewards of its chair, members and secretariat are issued by decision of the Minister.
The committee comes at the stage after a violation is detected, since Article 15 provides that violations are detected by employees named in a decision of the Minister who hold law-enforcement status. Article 17 also gives the committee the power to take alternative or additional measures, such as warning the merchant or requiring corrective steps.
If your violation is referred to the committee, it may help to consult a lawyer specialized in commercial cases to present your defense.
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 Trade Names Law
Who imposes fines under the Trade Names Law?
A committee formed by decision of the Minister considers violations and imposes the penalty, and the Minister may specify violations for which penalties may be imposed directly without referring them to the committee.
How many members does the trade name violations committee have?
No fewer than 3 members, and the committee is chaired by a person with legal qualifications.
Articles this article refers to
More articles on Trade Name Violations and Penalties
- Article 8
The article requires the merchant to display his trade name on the front of his place of business according to its nature, and to put it on all his documents, correspondence and printed materials.
يجب على التاجر أن يعرض اسمه التجاري على واجهة مكان مزاولة أعماله التجارية بحسب طبيعتها، وأن يضعه في جميع وثائقه ومراسلاته ومطبوعاته.
- Article 14
The article punishes violations of the Trade Names Law with a fine of up to SAR 50,000, which may be doubled for repetition within three years, taking account of the seriousness of the violation and the size of the business.
1- دون إخلال بأي عقوبة ينص عليها نظام آخر، يعاقب بغرامة لا تزيد على (خمسين) ألف ريال كل من: أ- استعمل اسماً تجاريّاً محجوزاً أو مقيداً له بما يخالف أحكام النظام
- Article 15
The article assigns enforcement of the law's violations to employees named by the Minister who hold law-enforcement status, and lets the Minister issue rules for their work and for rewards for detecting violations.
1- يتولى ضبط ما يقع من مخالفات لأحكام النظام موظفون يصدر بتسميتهم قرار من الوزير، وتكون لهم صفة الضبط. 2- يصدر الوزير قواعد تنظم عمل ومهمات الموظفين المشار إليه
- Article 17
The article allows the committee, once a merchant's violation is established, to warn the merchant or require preventive or corrective steps, in addition to the penalty or instead of it.
إذا ثبت أن التاجر قد ارتكب أيًّا من المخالفات الواردة في المادة (الرابعة عشرة) من النظام، فيحق للجنة أن تتخذ -بالإضافة إلى العقوبة المقررة أو بدلًا منها- أيًّا
- Article 18
The article gives anyone against whom a decision is issued under the law the right to challenge it before the competent court within 30 days from the date of notification.
يحق لمن صدر ضده أي قرار بناءً على أحكام النظام التظلم منه أمام المحكمة المختصة خلال (ثلاثين) يومًا من تاريخ التبليغ به وفقًا لما تحدده اللائحة.
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.