Consumer Protection (UAE) LawFederal Law by Decree No. (42) of 2023 Concerning Anti-Commercial Fraud

Article (1) Definitions In application of the provisions of this Law by Decree, the following words and phrases shall have the meanings assigned to each of them, unless the context otherwise requires: United Arab Emirates. : State Ministry of Economy. : Ministry Minister of Economy. : Minister The relevant Emirate's local competent authority responsible for applying the provisions of this Law by Decree. : Competent Authority The Federal or Local Court, as the case may be. : Competent Court Supreme Committee for Anti-Commercial Fraud. : Supreme Committee Deceiving customers by any means, whether by replacing or changing the commodities' nature, amount, type, price, fundamental features, origin, source, or validity, or providing : Commercial Fraud

-- 1 of 12 --

Federal Law by Decree No. (42) of 2023 Concerning Anti-Commerical Fraud 2 false or misleading commercial data on the promoted products, or any other matter related thereto that leads to deceiving the customer. Every natural material or animal, agricultural, industrial, transformative or intellectual product, including basic and luxury products, raw materials, manufactured and semi- manufactured materials. : Goods Any piece of goods that has undergone a change that has caused it to lose some of its material or moral value, whether by addition or decrease, or change in essence, nature, type, properties, shape, elements, measure, size, number, capacity, calibre, origin, or source, or advertising or promoting it in a manner that contradicts its reality, or not conforming to the specifications and standards specified in the State. : Fraudulent Goods Any goods which become not wholly or partially suitable for exploitation, use, or consumption. : Spoilt Goods The goods which bear, without permission, a trademark which is identical or similar to a legally registered trademark. : Counterfeit Goods Any person carrying out an economic activity, a person associated with it, or any group of such persons, regardless of its legal form, through which economic activity may be carried out in the State. : Establishment Every natural or legal person who imports, exports, re-exports, manufactures, produces, markets, trades, promotes, disposes of, sells, possesses, stores, transports or displays goods for its own account or for the account of others. : Provider The natural or legal person that purchases the goods. : Customer Any measure aimed at preventing the introduction of fraudulent, spoilt or counterfeit goods into the State. : Recalling the goods

-- 2 of 12 --

Federal Law by Decree No. (42) of 2023 Concerning Anti-Commerical Fraud 3

Article (4) Fraudulent, Spoilt or Counterfeit Goods 1. It is prohibited to import, export, produce, manufacture, display, sell, store, transport, market, trade, promote, dispose of, or possess counterfeit goods for the purpose of selling, and it is also prohibited to attempt any of these acts. 2. Anyone who commits, participates in, or attempts to commit one of the following acts is considered to be in violation of the provisions of this Law by Decree: a. Importing fraudulent, spoilt or counterfeit goods or materials intended for these purposes with the intention of commercial fraud, and knowingly exporting, re-exporting, manufacturing, producing, selling, storing or transporting them.

-- 3 of 12 --

Federal Law by Decree No. (42) of 2023 Concerning Anti-Commerical Fraud 4 b. Deception, fraud, or counterfeit regarding the type, number, amount, measurement, quantity, weight, capacity, calibre, reality, nature, properties, elements, source, origin, composition, or expiration date of goods. c. Possession, personally or through mediation, for the purpose of marketing, trading, promoting, or offering for sale, of fraudulent, spoilt, or counterfeit goods, or materials to defraud or counterfeit goods. d. Using utensils, containers, wrappers, packages, labels, or publications in preparing fraudulent, spoilt, or counterfeit goods intended for sale. e. Packing, wrapping, strapping, distributing, storing, or transporting fraudulent, spoilt, or counterfeit goods. f. Possession of fraudulent, spoilt or counterfeit goods, with the intention of modifying, changing or altering them. g. Describing, advertising or displaying the goods in a manner that contains false, deceptive or misleading data.

Article (5) Recall from Markets, Stores and Destruction 1. The Provider is obligated, of its own accord or upon the order of the Ministry or the Competent Authority, as the case may be, to recall fraudulent, spoilt or counterfeit goods from markets and stores, and to inform the Competent Authority or the ministry, as the case may be, of this and announce it in appropriate ways. The Competent Authority or the Ministry, as the case may be, recall the fraudulent, spoilt and counterfeit goods and dispose of them, destroy them, or return them to their source at the expense of the Provider without prejudice to the penalty prescribed against it. The Executive Regulation of this Law by Decree shall specify the procedures, controls, and periods necessary for the foregoing, as well as the aspects of coordination between the Ministry and the Competent Authority. 2. In all cases, the Provider is obligated to pay any costs or expenses incurred by the Competent Authority or the Ministry, as the case may be, regarding the recall, disposal,

-- 4 of 12 --

Federal Law by Decree No. (42) of 2023 Concerning Anti-Commerical Fraud 5 destruction or return of fraudulent or counterfeit goods as stipulated in Clause (1) of this Article.

Article (8) Provider's Obligations The Provider shall abide by the following: 1. To submit to the Competent Authority or the Ministry, as the case may be, the mandatory commercial books or the like, which show the commercial data of the goods owned or possessed thereby, their value, and all documents and invoices supporting them whenever it is requested to do so.

-- 5 of 12 --

Federal Law by Decree No. (42) of 2023 Concerning Anti-Commerical Fraud 6 2. To place on the goods identification cards or any written, printed, drawn or engraved information that accompanies a product and shows the components of the commodity and how to use, maintain or store it, in accordance with the laws in force in the State.

Article (10) Powers and Duties of Judicial Enforcement Officers 1. Judicial enforcement officers shall have the right to enter shops, stores, factories, establishments, and all places not intended for residential use at any time for inspection and to review the records and books and seize the suspicious goods or keep them with the Provider, under its responsibility, and withdraw samples from them for examination and analysis. The Executive Regulation of this Law by Decree shall specify the procedures for inspection, examination and seizure of goods and the time periods necessary for that. 2. Judicial enforcement officers must take the preventive measures necessary to ensure occupational health and safety while performing their inspection duties.

Article (12) Request to Release Goods 1. The Provider of which goods have been seized or reserved may submit to the Competent Court a request to release the seized or reserved goods. The Court may order, within (24) hours of submitting the request to release, to fulfil the following conditions and controls: a. That the Provider must submit to the Court evidence that the goods are subject to rapid destruction or damage. b. That samples of the reserved goods have been taken for examination. c. That the court finds it likely that there is no risk to public health from the release of the goods. 2. Without prejudice to Clause (1) of this Article, the goods shall be released if an order is not issued by the Competent Court confirming the reservation within forty-five (45) days following the day of seizure, taking into account that this period does not exceed twenty (20) days for goods that are subject to rapid destruction or damage.

Article (18) The penalty for the crimes referred to in Article (17) of this Law by Decree shall be increased to include imprisonment and/or a fine not less than one hundred thousand (100,000) AED and not exceeding two million (2,000,000) AED, in the following cases: 1. If the act of fraud, deception, or counterfeiting of the goods – or the attempt to do so – is accompanied by the use of counterfeit or different weights, measures, seals, labels, or examination machines, or the use of methods and means that would make the process of weighing, measuring, or examining the product incorrect. 2. If the fraudulent, spoilt or counterfeit goods or the materials used in their fraud are harmful to the health and safety of humans or animals. 3. If the fraudulent, spoilt, or counterfeit goods are medical drugs, agricultural crops, or organic food products.

Article (20) Punishing Those Responsible for Actual Management of the Legal Person 1. The person responsible for the actual management of the violating legal person shall be punished with the same penalty stipulated in Articles (17) and (18) of this Law by Decree, if it is proven that he has been aware of the crime and has not taken the necessary measures

-- 9 of 12 --

Federal Law by Decree No. (42) of 2023 Concerning Anti-Commerical Fraud 10 regarding it, or if his serious breach of the duties imposed thereon by such management has contributed to its occurrence. 2. The person responsible for actual management of the legal person shall be jointly liable with the legal person for paying the fines ordered thereon if the violation is committed by one of the employees of the legal person in its name or for its benefit.

Article (23) Grievance Against Decisions and Appeal 1. Every interested party may submit in writing a grievance to the Minister or the Head of the Competent Authority, as the case may be, against any decision issued pursuant to the provisions of this Law by Decree, its Executive Regulation, or the resolutions issued in

-- 10 of 12 --

Federal Law by Decree No. (42) of 2023 Concerning Anti-Commerical Fraud 11 implementation thereof, within fifteen (15) working days as of the date of being notified of the decision or procedure grieved against; provided that it is accompanied by all supporting documents and instruments. The grievance shall be decided on within thirty (30) days as of the date on which it is submitted, and the decision issued thereon shall be final. Not replying to the grievance within said period shall be deemed a rejection to the request. 2. The grievant may appeal the decision to reject the grievance before the Competent Court within thirty (30) working days as of the date of notifying him of this decision or the expiration of the deadline to decide on the grievance without notifying him. 3. In all cases, it is not permissible to appeal before the Competent Court except after the decision has been grieved against and the grievance has been rejected or the deadline stipulated in Clause (2) of this Article has passed without notification.