UAE Intensifies Efforts Against Commercial Fraud and Counterfeit Goods with New Legal Framework
Abu Dhabi, UAE – The United Arab Emirates is reinforcing its commitment to safeguarding consumer rights and protecting intellectual property through rigorous market enforcement and an updated legislative framework. The Ministry of Economy recently disclosed that it conducted 4,444 inspection tours across local markets between early 2023 and the first half of this year, resulting in the detection of 620 violations primarily related to commercial fraud, imitation, and trademark counterfeiting.
Enhanced Regulatory Scrutiny
The extensive inspection campaigns underscore the nation’s proactive approach to maintaining market integrity. These efforts are part of a broader strategy to continuously evolve economic policies and legislation, aiming to strengthen the consumer protection ecosystem, guarantee consumer rights, and ensure a stable market environment aligned with international best practices. Such initiatives are crucial for fostering a competitive business climate, promoting flexibility in economic and commercial activities, and solidifying the UAE’s standing as a premier global hub for trade, business, and innovation.
Landmark Legislation: Federal Decree Law No. (42) of 2023
A significant development in this regard is Federal Decree Law No. (42) of 2023 on combating commercial fraud. This new law provides a robust impetus for an integrated legislative system designed to protect consumer rights and combat commercial fraud across the country, aligning the UAE with global benchmarks.
The legislation establishes comprehensive mechanisms and controls to prevent the trade of counterfeit, adulterated, and corrupt products. It specifically targets the counterfeiting of original goods and all manifestations of commercial fraud, thereby ensuring fair competition and enhancing the nation’s leadership in global competitiveness indicators.
Strategic Vision and Impact
A senior official from the Ministry of Economy affirmed that this law marks a pivotal step in the UAE’s transition towards an economic model predicated on fair competition and innovation. The legislation is instrumental in developing the regulatory and legislative environment for the economic sector and improving the business environment and its governance, consistent with the Ministry’s strategic objectives.
The official emphasized that the new law, which supersedes previous legislation on commercial fraud, is set to boost the competitiveness of the business environment for companies and trademark owners within the UAE. It aims to stimulate business innovation, reinforce intellectual property protection, and harmonizes with other federal laws pertaining to consumer protection, trademarks, copyright and related rights, and commercial agencies. The framework was developed with a forward-looking and adaptable approach to anticipate future market trends.
Key Provisions of the New Law
Among the most prominent outcomes of the new legislation are:
- Safe Purchasing Environment: Establishing a secure and reliable environment for consumers by actively combating counterfeit, imitated, and corrupt goods.
- Withdrawal Procedures: Organizing clear procedures for the withdrawal of counterfeit, imitated, or corrupt goods from markets and stores, including mechanisms for refunding their value to consumers.
- Supreme Committee for Combating Commercial Fraud: Creating a dedicated “Supreme Committee for Combating Commercial Fraud” tasked with enforcing anti-commercial fraud policies across all state markets, in close coordination with relevant federal and local authorities.
These measures collectively underscore the UAE’s unwavering commitment to upholding legal standards, protecting intellectual property rights, and fostering a transparent and secure commercial ecosystem for all stakeholders.