Anti-Commercial Fraud Law

Anti-Commercial Fraud Law Royal Decree No. (M/11) Dated 29/5/1404H (corresponding to 2/3/1984) WITH THE HELP OF ALMIGHTY ALLAH, WE, FAHD BIN ABDULAZIZ AL-SAUD, KING OF THE KINGDOM OF SAUDI ARABIA, After reviewing the Articles (19) and (20) of the Council of Ministers Law of Saudi Arabia issued upon the Royal Decree No. (38) dated 22/10/1377H (corresponding to 12/5/1958), After reviewing the Anti-Commercial Fraud Law issued upon the Royal Decree No. (45) dated 14/8/1381H (corresponding to 21/1/1962), And after reviewing the Decree No. (107) dated 12/5/1404H (corresponding to 14/2/1984) issued by the Council of Ministers, WE HEREBY DECREE THE FOLLOWING: First: Approving the Anti-Commercial Fraud Law as per the attached form. Second: His Royal Highness the Deputy Prime Minister as well as the Ministers, each within the scope of his jurisdiction, shall bring this Decree into force. Royal Signature

Anti-Commercial Fraud Law Article 1 A fine ranging from SR 5 thousand to SR 100 thousand, a sentence of closing down the shop for a period of not less than a week and not exceeding 90 days or both penalties shall be imposed on any person who defrauds, attempts to defrauds, cheats or attempts to cheat by any means in one of the following: a. Product's essence, nature, kind, type, components or essential characteristics. b. Product's origin. c. Product's quantity, whether in terms of weight, measure, size, number, capacity or caliber, or the application of methods and means that affect negatively on product's quantity. d. Product's description, advertising, or offering in a manner that includes false or deceptive statements. Article 2 A penalty of closing down the shop, or imprisonment for a period ranging from a week to 90 days, along with a fine of not less than SR 10 thousand and not exceeding SR 100 thousand and confiscation of the products subject of the violation shall be imposed on: a. Any person who defrauds or attempts to defraud in the components of the human or animal foods. b. Any person who sells, offers for sale, or holds any of the human or animal foods whose components are fraudulent or spoilt. Article 3 The commodity that is not in full compliance with the determined specifications shall be considered fraudulent or spoilt. The Implementing Regulations shall specify such cases.

Article 4 The commodity shall be considered spoilt if the period of validity recorded thereon is expired. Article 5 Without prejudice to the penalties set forth in the Law of Customs and its Implementing Regulations thereof or in any other law, the penalty mentioned in the Article(1) shall be imposed on any person who imports any fraudulent, spoilt or unusable commodity. If not removing the signs of fraud, the importer shall be ordered to re-export the commodity in accordance with the determined controls within the period specified in the Implementing Regulations. In case of refraining from executing the order on the specified time, the commodity shall be confiscated by an administrative decision without any compensation, the Implementing Regulations shall show the way of disposing such item. Article 6 Without prejudice to impose the determined penalty, the producer or the provider of any fraudulent, spoilt or unusable commodity shall be ordered to withdraw the commodity from the market. Also, the commodity shall be confiscated by an administrative decision without any compensation, unless the producer or the provider removes the signs of fraudulence, re-manufactures or furnishes the commodity in accordance with the determined controls within the period specified in the Implementing Regulations. In case of refraining from executing the order on the specified time, the commodity shall be confiscated by an administrative decision without any compensation, the Implementing Regulations shall show the way of disposing such item. Article 7 Without prejudice to the provisions of the Article (6), the penalty set forth in the Article (1) shall be imposed on any person who sells or offers for sale any fraudulent, spoilt or unusable commodity. Also, the commodity shall be confiscated

by an administrative decision without any compensation if the components are fraudulent or spoilt. The other commodities subject of the violation shall be disposed of in accordance with the provisions of the Implementing Regulations. Article 8 A fine ranging from SR 5 thousand to SR 100 thousand shall be imposed on any person who imports, manufactures, prints, holds, sells, or offers for sale any package, material or printed materials with the aim of defrauding the commodity. Also, the commodity shall be confiscated by an administrative decision without any compensation, the Implementing Regulations shall show the way of disposing such item. Article 9 The seller shall be ordered to repay the price to the buyer if the commodity proved to be fraudulent, unusable, spoilt, or used to defraud any other commodity. Article 10 In addition to the application of other penalties set forth in this Law, any person disposing of any seized commodity shall, in the application of the Anti-Commercial Fraud Law, be enforced to submit its price to the fund of the Ministry of Commerce. Article 11 The penalties set forth in this Law shall be applied to any person participated in or instigated to commit a violation. Article 12 To apply the provisions of this Law, the violator is supposed to be aware of the fraudulent, spoilt or unusable commodity as long as he is engaged in commerce,

unless proved otherwise. The buyer knowledge will not prevent the enforcement of the penalties set forth in this Law on the violator. Article 13 The seller, or whomever the product is distributed on his behalf, the managers of companies, cooperatives and establishments shall be liable for all violations of the provisions of this Law, and each shall be subject to the penalties prescribed for the violator. If any of them proves that the violation has occurred due to reasons beyond his control, the penalty shall be inflicted solely on the violator without prejudice to the joint liability with regard to the payment of the fines sentenced on him. Article 14 a. The employees of the Ministry of Commerce as well as the Ministry of Municipal and Rural Affairs and any other governmental body, the Ministry of Commerce decides to hire the employees thereof, shall be liable for recording the violations of the provisions of this Law, and the Implementing Regulations thereof, as well as investigating them. The appointment of these employees shall be done with a decree issued by the Minister of Commerce after obtaining the approval from their employers. The said employees shall have the right to access the shops containing the commodities subject to the provisions of this Law, they have to record the violations, and seize the involved commodities with the related documents, if needed. Also, the employees may take samples for analysis in accordance with the provisions of the Implementing Regulations and they may ask the help of the police officers, if required. b. The employees of municipalities shall be assigned to monitor the perishable foodstuffs existing in the markets, and to seize the spoilt items. The Minister of Municipal and Rural Affairs shall determine by his decree such foodstuffs, the measures of seizing them, and the way of disposing of them. c. The employees referred to in the above-mentioned paragraphs (A) and (B) shall have the right to confiscate or damage the commodity after verifying that it is rotten

or fraud in accordance with the provisions of the Implementing Regulations, or the decree referred to in the paragraph (B) of this Article. Article 15 Without prejudice to any harsher penalty set forth in any other Law, a fine of not less than SR 10 thousand and not exceeding SR 50 thousand shall be imposed on any person preventing the assigned employees to execute the provisions of this Law and the Implementing Regulations, or to perform their duties. If the violator aims, by doing that, to conceal the violation, the shop will be closed for a period not less than 3 days and not exceeding to 15 days in addition to the application of the previous penalty. Article 16 Committees will be formed by the Minister of Commerce decree in the cities where the Minister underscores the necessity of forming committees therein, that will be liable for enforcement of the penalties set forth in this Law as well as the fulfillment of the required investigations. Each committee shall be made up of 3 Saudi members, comprising two members from the Ministry of Commerce and a member from the Ministry of Municipal and Rural Affairs. At least one of the members must have a businesslike experience. The Implementing Regulations shall determine the trial procedures, issue the decrees, and notify the violators of such decrees. Article 17 The decisions of the committees referred to in the aforementioned Article shall be final after obtaining the approval of the Minister of Commerce except for the imprisonment penalty. The appellant may file a complaint to the Bureau of Grievances within 30 days from the date of notification. After being informed of the complaint, the Ministry of Commerce shall refer the papers supported by its view to the Bureau of Grievances whose verdict shall be final. If the appellant has not filed a complaint within the mentioned period, the verdict shall be final after obtaining the approval of the Minister of Commerce.

Article 18 The Minister of Commerce shall have the right to regulate by his decision the procedures that must be followed when offering general discounts in the commodities prices offered in the shops to ensure seriousness and lack of fraud. This decision shall include the determination of seasons and periods when the discounts are offered. The penalties set forth in Article (1) shall be applied on the violator of the provision of the decision. Article 19 Upon a proposal submitted by the Minister of Commerce, the Council of Ministers may, by a decision, establish rules to offer financial incentives for the employees assigned to apply the provisions of this Law and its Regulation thereof and for those who assist in the discovery of any commercial fraud or deception. Article 20 Pursuant to the provisions of this Law and the Implementing Regulations thereof, the Ministry of Commerce shall defame the violator, against whom a final verdict of condemnation was issued, at least in one of the mass media. The publication fees shall be paid by the sentenced person. Article 21 The Minister of Commerce shall issue the required decisions and Regulation to bring this Law into force. Article 22 This Law shall supersede the Anti-Commercial Fraud Law issued by the Royal Decree No. (45) dated 14/8/1381H (corresponding to 21/1/1962).

Article 23 This Law shall be published in the Official Gazette and shall come into Force after 90 days from the date of publication. Ministerial Resolution No. (1327/3/1) dated 1/6/1405H(corresponding to 21/2/1985) Concerning the Issuance of the Implementing Regulations of the Anti-Commercial Fraud Law THE MINISTER OF COMMERCE, Upon the authorities assigned to him thereto, And after reviewing the Anti-Commercial Fraud Law issued by the Royal Decree no. (M/11) dated 29/5/1404H (corresponding to 2/3/1984), HEREBY DECREES THE FOLLOWING: First Article: The approval of the Implementing Regulations of the Anti- Commercial Fraud Law according to the attached formula. Second Article: This Resolution shall be published in the Official Gazette and shall come into force as from the date of publication. MINISTER OF COMMERCE Ministerial Resolution No. (757/3/49/33) Dated 24/3/1405H (corresponding to 17/12/1984 Concerning Organizing the Declaration of General Discounts in the Commodities Prices at the Shops THE MINISTER OF COMMERCE,

Upon the authorities assigned to him thereto, And after reviewing the Anti-Commercial Fraud Law issued by the Royal Decree No. (M/11) dated 29/5/1404H (corresponding to 2/3/1984), HEREBY DECREES THE FOLLOWING: Article 1 The shops are not allowed to declare comprehensive or partial discounts in the commodities prices offered for sale, except in accordance with the conditions and rules manifested in this Resolution. Article 2 The owner of the shop shall notify the affiliated Chamber of Commerce of his desire of making discounts, at least one month before the launch of discounts. Such notification must include the following: a. The reasons of offering discounts. b. The period of discounts as well as the beginning and ending dates. c. A list of commodities subject of discounts showing the actual price for each commodity at the time of the application, as well as the price after the discount and the percentage of discount. Article 3 The Chamber of Commerce shall issue its decision with regard to the submitted application within a week from the date of submission thereof. Then, it will inform the Ministry of Commerce or the relevant branch and the owner of the shop of such a decision. In case of approval, the notification must include the reasons and periods of offering discounts, the beginning and ending dates, and a list of commodities subject of discounts; the application must be submitted at least 15 days before the launch of discounts. Article 4 The notification of the Chamber of Commerce must be placed in an apparent place in the shop. Also, the owner must keep the certified price list within the shop from the date of receiving it and up till the end of the discount period, as well as the

documents and bills of the commodities included in the list. Article 5 Declaration of offering discounts throughout the Kingdom of Saudi Arabia shall be made within the following periods: a. From the second half of March annually for two months. b. From the second half of September annually for two months. c. The period of offering discounts in only Makkah, Madinah, and Jeddah, shall extend from the beginning of Rajab up till the end of Dhul-Hijjah annually. The Deputy Minister for Supplies may amend such deadlines in accordance with the requirements of public interest, provided that the Chamber of Commerce is informed of the amended deadlines. Article 6 With the exception of Makkah, Medina and Jeddah, it is not allowed to declare discounts, except twice a year; provided that each period must not exceed a month. Article 7 As an exception of the provisions of the aforementioned two articles, it shall be allowed to declare general discounts in deadlines other than those mentioned in the Article (5) for 6 months as maximum in case of the final liquidation of the shop due to cessation of performing the commercial activity, change of the business type, renewal of the shop comprehensively, or transfer to another place whether in the same city or in another city. Article 8 The general rate of discounts must not be less than 15% of the actual price applied one month before the launch of the discounts. Article 9 The shop must place labels on the commodities subject of discounts, showing clearly the price before and after the discount. During the period of discounting, it shall not be allowed to offer low-price commodities other than those mentioned in the commodities list approved by the Chamber of Commerce. Also, the defective

commodities must not be offered for sale, except in special places prepared only for this purpose inside the shop. Article 10 Declaration of comprehensive discounts shall be allowed only if the whole commodities available in the shop are subject of the comprehensive discounts. On the other hand, the declaration of partial discounts shall be allowed for a rate of not less than 50% of the commodities available in the shop. If the rate is less, the seller shall not have the right to declare any discounts by any means, and instead, shall mention this discount by placing a label on the commodity, showing the price before and after discounts. Article 11 Without prejudice to the provisions of the Article (7), it shall not be allowed to declare discounts by any means before their launch by more than 20 days. Also, the reason of offering discounts must be clearly mentioned in the form of declaration. If the said declaration is placed on the shop window, it shall not be allowed to place it for more than a week before the launch of discounts. Article 12 The penalty set forth in Article (1) of the Anti-Commercial Fraud Law shall be imposed on the violator of the provisions of this Resolution. Article 13 This Resolution shall be published in the Official Gazette and shall come into force after 3 months from the date of publication. Minister of Commerce Ministerial Resolution No. (895/3/49) Dated 19/3/1409H (corresponding to 30/10/1988) THE MINISTER OF COMMERCE,

After reviewing the Competences System of the Ministry of Commerce issued by the Council of Ministers' Resolution No. (66) dated 6/4/1374 (corresponding to 2/12/1954), After reviewing the Law of Chambers of Commerce and Industry issued by the Royal Decree No. (6) dated20/4/1400h (corresponding to 8/3/1980) as well as the Implementing Regulations thereof, After reviewing the Anti-Commercial Fraud Law issued by the Royal Decree no. (11) dated29/5/1404h (corresponding to 2/3/1984), After reviewing the Minister of Commerce's Resolution No. (757/3/49/33) dated 24/3/1405H (corresponding to 17/12/1984), After reviewing the memorandum No.(305/3/49) dated 29/1/1409H (corresponding to 11/9/1988) submitted by the Deputy Minister of Supplies, And upon the requirements of the public interest, HEREBY DECREES THE FOLLOWING: Article 1 The provisions of articles (3, 4, 5, 6, 7, and 8) of the Minister of Commerce's Resolution No. (757/3/49/33) dated 24/3/1405H (corresponding to 17/12/1984)shall be replaced by the following: Article 3 The Chamber of Commerce shall issue its resolution with regard to the submitted application within a week from the date of submission thereof. In case of approval, the Chamber of Commerce shall give the applicant a license allowing him to offer the required discounts. Also, the said Chamber shall send a copy of such a decision to the Ministry of Commerce or its relevant branch before the scheduled time of discounts by at least 20 days. Such a license must include the following:

a) The reasons of offering discounts. b) The period of discounts as well as the beginning and ending dates. c) A list of commodities subject of discounts. Article 4 Any person owing more than one shop in a city may extract only a license for all of them, as long as the activity of such shops is the same. The names and addresses of the shops offering discounts must be mentioned in the license. The owner of the shop must place the license or a photo-copy thereof in an apparent place in the shop. Also, the owner must keep the certified price list within the shop throughout the discount period, as well as the commodities documents and bills included in the list. Article 5 Declaration of offering discounts may be made any time during the year without prejudice to the provisions of this Resolution. Article 6 It shall not be allowed to declare discounts in prices more than twice a year; given that, each period must not be of more than 45 days. Article 7 As an exception of the provisions of the aforementioned Article, it shall be allowed to declare general discounts in prices for 6 months as maximum in case of the final liquidation of the shop due to cessation of performing the commercial activity, change of the business type, renewal of the shop comprehensively, or its transfer from a place to another. Article 8 The general rate of discounts must not be of less than 15% of the actual price applied one month before the launch of discounts. If the discount rate exceeds 30% of the actual price before discounting, the owner of the shop must submit to the Chamber of Commerce bills proving the sale at that price in different times.

Article 2 This Resolution shall be published in the Official Gazette and shall come into force as from the date of publication. Ministerial Resolution No. (119) Dated 16/1/1422H (corresponding to 10/4/2001) THE MINISTER OF COMMERCE, Upon the authorities assigned to him thereto, After reviewing the Anti-Commercial Fraud Law issued by the Royal Decree No. (M/11) dated 29/5/1404H (corresponding to 2/3/1984), After reviewing the Implementing Regulations of the aforementioned Law issued by the Ministerial Resolution No. (1327/3/1) dated 1/6/1405H (corresponding to 21/2/1985), After reviewing the Ministerial Resolution No. (921) dated 23/8/1416H (corresponding to 14/1/1996) concerning the amendment of Article (30) of the Implementing Regulations of the Anti-Commercial Fraud Law, After reviewing the Ministerial Resolution No. (2059) dated 19/12/1421H (corresponding to 14/3/2001) concerning changing the name of Quality and Control General Department into Anti-Commercial Fraud General Department, and referring the acts of markets inspection and implementing the relevant regulations to this newly-named department, And upon the requirements of the public interest, HEREBY DECREES THE FOLLOWING: First: The Ministerial Resolution No. (921) dated 23/8/1416H (corresponding to 14/1/1996) to be cancelled.

Second: The Article No. (30) of the Implementing Regulations of the Anti-Commercial Fraud Law issued by the Ministerial Resolution No. (1327/3/1) dated 1/6/1405H (corresponding to 21/2/1985) shall be amended into: 1. The secretariat of the decision-issuing committee shall send a photo-copy of such a decision to the concerned person, against whom the decision was issued, giving him the right to file a complaint to the Bureau of Grievances within 30 days if the decision includes a penalty of imprisonment. If the decision includes a sentence other than imprisonment, the verdict shall be final after obtaining the approval of the Minister of Commerce. 2. A committee shall be formed in the Ministry of Commerce to study and review the committees' decisions which include sentences other than imprisonment. On his part, the Undersecretary Assistance for Legal Affairs in the Ministry will submit these decisions along with the study outcome and his point of view to the Minister of Commerce; given that, the Minister shall have the right to approve or reject the decision and send it back to the issuer committee, if the decision violates the provisions of the Anti- Commercial Fraud Law or if the penalty is not commensurate with the offense. The committees shall be liable for settling the decisions sent back by the Minister ignoring the whole defects afflicting the decision; given that, the concerned person shall receive a photo-copy of such decisions after obtaining the approval of the Minister of Commerce thereon. 3. If the concerned person has not filed a complaint against the imprisonment penalty during the scheduled time, the provisions of the Paragraph (B), of the second item set forth in this Resolution shall be imposed thereon. 4. The original form of the decision along with all the case papers shall be submitted to the Anti-Commercial Fraud General Department to complete the statutory steps thereof. Third: This Resolution shall be published in the Official Gazette and shall come into force as of the date of publication.

Minister of Commerce Osama bin Ja'far Faqih Ministerial Resolution No. (2397) Dated 7/11/1422H (corresponding to 21/1/2002) for Issuing Regulations Regarding Recalling Vehicles and their Accessories and Spare Parts THE MINISTER OF COMMERCE, Upon the authorities assigned to him thereto, After reviewing the Competences System of the Ministry of Commerce issued by the Royal Decree No. (66) dated 6/4/1374H (corresponding to 2/12/1954), After reviewing the Anti-Commercial Fraud Law issued by the Royal Decree No. (M/11) dated 26/5/1404H (corresponding to 28/2/1984), After reviewing the Commercial Agencies System issued by the Royal Decree No. (M/11) dated 20/2/1380H (corresponding to 13/8/1960), After reviewing the Draft Regulations of the Recall of Vehicles and their Accessories and Spare Parts prepared by the Committee formed of the Ministry of Interior, the Ministry of Commerce, the Ministry of Transport, King Abdulaziz City for Science and Technology, and the Saudi Standards, Metrology, and Quality Organization as per its minutes dated 15/6/1422H (corresponding to 3/9/2001), After reviewing the memorandum submitted by His Excellency the MCI Undersecretary Assistant for Legal Affairs on 28/10/1422H (corresponding to 12/1/2002), And upon the requirements of the public interest, HEREBY DECREES THE FOLLOWING:

First: The approval of the Regulations of the Recall of Vehicles and their Accessories and Spare Parts as stated herein. Second: This Resolution shall be published in the Official Gazette and shall be enforced within (30) days from the date of publication thereof. May Allah Guide us, Minister of Commerce Osama bin Ja'far Faqih Regulations of the Recall of Vehicles and their Accessories and Spare Parts Article 1 These Regulations shall be concerned with all kinds of recall of vehicles and their accessories and spare parts, such as tires, batteries and so on. Article 2 The following terms, wherever mentioned in the Regulations, shall have the meanings assigned to each: 1) Ministry: the Ministry of Commerce. 2) Manufacturer: the manufacturer company of the product bearing the name of such a company. 3) Local Agent: the agent(s) of the manufacturer at some or all of the Kingdom's regions. 4) Vehicle: a machine with an engine that moves on roads, and doesn't rely, for its movement, on rails, cables, etc. Vehicles include motor bikes as well. 5) Product: the vehicle moving on roads, or its accessories or spare parts, such as tires, batteries and so on; provided being included within the types and models used in the Kingdom, whether imported by the local agent or others. 6) Deficiency: any design, or manufacturing defect in the product that appears before or during usage, or as a result of non-compliance with the Saudi standards,

or the other standards accredited by the Saudi Standards, Metrology, and Quality Organization. 7) Recall: an obligatory procedure conducted by the manufacturer and its local agent in case of the emergence of a certain deficiency in any product, by the manufacturer or a governmental authority in the Kingdom, the country of origin, or another country, according to the requirements herein enumerated. 8) User: the product owner in the Kingdom. Article 3 Procedures that shall be taken in case of recalling a certain product: 1) The manufacturer and the local agent thereof shall be committed to notifying the Ministry in writing of any recall of products within a period not exceeding ten days as of the commencement of recalling, and it shall open the recall file promptly. 2) The recall file shall not be closed without the Ministry's permission. 3) The notification shall include the types covered by the recall, as well as the number of products, of all kinds, imported and sold in the Kingdom, along with a description of the defected part, and the causes of the deficiency, as well as the potential risk that the deficiency may cause. 4) The manufacturer and the local agent thereof shall be committed to announce the recall in more than one local newspaper, more than once, in a manner that covers the entire Kingdom's regions within a period not exceeding ten days as of the commencement of recalling. The announcement shall touch upon the information to follow: Name and logo of the manufacturer. Name and complete address of the local agent. Name of the product and country of manufacturing. Description of the deficiency. Telephone number (hot line) as well as the fax number of the agent to enable the user to contact, enquire, and seek help therefrom when needed. Directives that the user must follow to avoid any risk till the repair process is accomplished.

5) Only in cases of recalling cars, the local agent shall inform the user clients by phone, registered mail or e-mail of such recalling. The user may claim the lack of knowledge only if the address thereof is found with the local agent without being informed of the recalling. 6) The manufacturer as well as the local agent shall commit to recalling, repairing, and replacing the defective part of the product, free of charge and without consideration of the warranty period. 7) If the place of residence of the user is located more than 80 km from the local agent's nearest certified workshop, the local agent shall pay all charges of transportation and send technicians to the place where the user resides. 8) The Ministry shall follow up the recalling process. 9) The local agent shall provide the Ministry with a monthly report on the achievements pursuant to the recalling processes, including the number of products recalled and repaired. 10) The manufacturer shall bear all charges arising from the recalling process, including the announcement charges. Article 4 The local agent shall commit to receiving and handling complaints of the users with great interest. In case of recurrence for three times, the manufacturer shall be informed and the Ministry shall receive a photo-copy of the notification within a period of not more than a week from the date of submitting the last complaint. Article 5 The Ministry shall conduct an investigation with the local agent and the manufacturer once receiving a number of complaints (not less than three complaints) on a specific defect in a product. Article 6 Without prejudice to the penalties set forth in the Law of Commercial Agencies, the defect stated in these Regulations shall be deemed as commercial fraud in accordance with the provisions of Articles (3) and (6) of the Anti-Commercial Fraud Law. If the manufacturer or local agent fails to recall the product in accordance with the provisions of Articles (2) and (4) of these Regulations, the penalties set forth in the Anti-Commercial Fraud Law and the Implementing

Regulations thereof shall be applied to the local agent and the manufacturer, without wasting the right of the Ministry to stop granting the International Conformity Certificate from the country of origin to the defective product until a proof of compliance with the provisions of these Regulations and removal of the commercial fraud and defect from the product is provided within the prescribed period without prejudice to the right of the aggrieved person in claiming compensation for actual damages sustained by him due to such a defect in the product. Ministerial Resolution No. (7090) Dated 12/7/1425H (corresponding to 28/8/2004) THE MINISTER OF COMMERCE AND INDUSTRY, Upon the authorities assigned to him thereto, After reviewing the Competences System of the Ministry of Commerce and Industry issued by the Council of Minister's Resolution No. (66) dated 6/4/1374H (corresponding to 2/12/1954), After reviewing the Anti-Commercial Fraud Law issued by the Royal Decree No. (M/11) dated 29/5/1404H (corresponding to 2/3/1984) as well as the Implementing Regulations thereof, After reviewing the Council of Minister's Resolution No. (50) dated 17/3/1410H (corresponding to 17/10/1989) including determination of the imported commodities and products that need to be checked and tested by the laboratories of the Ministry of Commerce and Industry, And after reviewing the Ministerial Resolution No. (5754) dated 7/6/1425H (corresponding to 24/7/2004) stipulating the continuity of the ban imposed on the Asian countries mentioned in the Ministerial Resolution No. (6057) dated 6/12/1424H (corresponding to 28/1/2004), i.e. Vietnam, Japan, South Korea, Indonesia, Pakistan, China, and Thailand due to the outbreak of the bird flu epidemic in those countries, as well as imposing a temporary ban on importing the

poultry meat from Cambodia, Chinese Taipei, Hong Kong, and Laos for the same reason. HEREBY DECREES THE FOLLOWING: 1. The continuity of the ban imposed on the Asian countries mentioned in the above-mentioned Ministerial Resolution. 2. Imposing of a temporary ban on importing the poultry meat and products from Malaysia. The MCI Agency for Technical Affairs shall bring the requirements of this Resolution into force and shall inform the relevant bodies of its content to act accordingly. Acting Minister of Commerce and Industry Ghazi Bin Abdul Rahman Al Qosaiby Ministerial Resolution No. (5754) Dated 7/6/1425H (corresponding to 24/7/2004) THE MINISTER OF COMMERCE AND INDUSTRY, Upon the authorities assigned to him thereto, After reviewing the Competences System of the Ministry of Commerce and Industry issued by the Council of Minister's Resolution No. (66) dated 6/4/1374H (corresponding to 2/12/1954), After reviewing the Anti-Commercial Fraud Law issued by the Royal Decree no. (M/11) dated 29/5/1404H (corresponding to 2/3/1984) as well as the Implementing Regulations thereof, After reviewing the Council of Minister's Resolution No. (50) dated 17/3/1410H (corresponding to 17/10/1989) including determination of the imported commodities and products that need to be checked and tested by the laboratories of the Ministry of Commerce and Industry,

And after reviewing the Ministerial Resolution No. (6057) dated 6/12/1424H (corresponding to 28/1/2004) stipulating the imposing of a temporary ban on importing the poultry meat and products from Vietnam, Japan, South Korea, Indonesia, Pakistan, China, and Thailand due to the outbreak of the bird flu epidemic in those countries. HEREBY DECREES THE FOLLOWING: 1. The continuity of the ban imposed on the Asian countries mentioned in the above-mentioned Ministerial Resolution. 2. Imposing of a temporary ban on importing the poultry meat and products from Cambodia, Chinese Taipei, Hong Kong, and Laos. The MCI Agency for Technical Affairs shall bring the requirements of this Resolution into force and shall inform the relevant bodies of its content to act accordingly. Minister of Commerce and Industry Hashim bin Abdullah Yamani Ministerial Resolution no. (6057) Dated 6/12/1424H (corresponding to 28/1/2004) THE MINISTER OF COMMERCE AND INDUSTRY, Upon the authorities assigned to him thereto, After reviewing the Competences System of the Ministry of Commerce and Industry issued by the Council of Minister's Resolution No. (66) dated 6/4/1374H (corresponding to 2/12/1954), After reviewing the Anti-Commercial Fraud Law issued by the Royal Decree No. (M/11) dated 29/5/1404H

(corresponding to 2/3/1984) as well as the Implementing Regulations thereof, After reviewing the Basic Law of the Saudi Arabian Standards, Metrology and Quality Organization issued by the Royal Decree no. (M/10) dated 3/3/1392 (corresponding to 17/4/1972), After reviewing the Council of Minister's Resolution No. (50) dated 17/3/1410H (corresponding to 17/10/1989) including determination of the imported commodities and products that need to be checked and tested by the laboratories of the Ministry of Commerce and Industry, After reviewing the Royal Decree No. (KH/B/17257) dated 17/12/1421H (corresponding to 12/3/2001) underscoring the importance of dealing with utmost caution, awareness and seriousness with the epidemic diseases that kill livestock, and poultry, and whose hazards threaten human health, Upon the news covered by the international mass media concerning the outbreak of the bird flu epidemic in a number of countries in East Asia, And upon the requirements of public interest, highlighting the importance of taking care of consumers health and safety in the Kingdom, HEREBY DECREES THE FOLLOWING: First: Imposing a temporary ban on importing the poultry meat and products from Vietnam, South Korea, Thailand, Japan, Pakistan, and China due to the outbreak of the bird flu epidemic. Second: The MCI Agency for Technical Affairs shall bring the requirements of this Resolution into force and shall inform the relevant bodies of its content to act accordingly. Minister of Commerce and Industry Hashim bin Abdullah Yamani

Royal Decree No. (M/19) Dated 23/4/1429H (corresponding to 29/4/2008) Concerning the Approval of the Anti-Commercial Fraud Law WITH THE HELP OF ALMIGHTY ALLAH, WE, ABDULLAH BIN ABDULAZIZ AL-SAUD, KING OF THE KINGDOM OF SAUDI ARABIA, According to Article (70) of the Basic Law of Saudi Arabia, issued by the Royal Decree No. (A/90) dated 27/8/1412H (corresponding to 2/3/1992AD), As per Article (20) of the Law of the Council of Ministers of Saudi Arabia, issued by the Royal Decree No. (A/13) dated 3/3/1414H (corresponding to 21/8/1993AD), According to Article (18) of the Law of Majlis Ash Shura Consultative Assembly of Saudi Arabia issued by the Royal Decree No. (A/91) dated 27/6/1428H (corresponding to 12/7/2007AD), And after reviewing the Council of Minister's Resolution No. (119) dated 22/4/1429H (corresponding to 28/4/2008), DO HEREBY DECREE THE FOLLOWING: First: The approval of the Anti-Commercial Fraud Law with the attached formula. Second: His Royal Highness the Deputy Prime Minister and Ministers shall bring this Decree into force, each within the scope of his jurisdiction. Abdullah bin Abdulaziz

Anti-Commercial Fraud Law Chapter One Definitions Article 1 The following words and phrases, wherever mentioned in this Law, shall have the meanings expressed next to them, unless the context requires otherwise: Law: Anti-Commercial Fraud Law. Regulations: Implementing Regulations of the Anti-Commercial Fraud Law. Fraudulent Product: a. Any product that has been altered or tampered in any way, causing it to lose some of its material or moral value, by means of discount, manufacturing or any other means; whether in its substance, nature, kind, type, shape, components, features, requirements, characteristics, origin or quantity in terms of weight, measure, measurement, number, capacity or caliber. b. Any product not conforming to the approved standard specifications. c. Defective product: Any product no longer fit for utilization, use or consumption as specified by the Regulations. Approved Standard Specifications: Specifications issued by the Saudi Arabian Standards, Metrology and Quality Organization or by any other local or international body and adopted by the said Organization. Ministry: Ministry of Commerce and Industry. Minister: Minister of Commerce and Industry. Chapter Two Violations Article 2 A person shall be considered a violator of the provisions of this law if he: 1. Deceives or attempts to deceive by any means in any of the following: a. Product's essence, nature, kind, type, components or essential characteristics.

b. Product's origin. c. Product's quantity, whether in terms of weight, measure, size, number, capacity or caliber. 2. Commits or attempts to commit fraud. 3. Sells a fraudulent product or offers for sale. 4. Holds a fraudulent product with the intent to trade with. 5. Manufactures, produces, holds, sells or offers products not in compliance with the standard specifications. 6. Uses cans, vessels, packages, containers or stickers not in compliance with the standard specifications, in preparing products for sale. 7. Fills, packs, ties, distributes, stores or transports products not in compliance with the standard specifications. 8. Imports, manufactures, prints, holds, sells or offers containers, packages or labels used in fraudulence for sale. 9. Imports a fraudulent product. Article 3 If a fraudulent product is distributed, the producer, importer and distributor shall commit to provide the Ministry with information regarding the quantity of such product as well as the names and addresses of retailers to whom the product is distributed, immediately upon being aware of, notified or informed of the violation at the address shown in the Commercial Registration or provided to the Chamber of Commerce and Industry, or when the violation is recorded. Article 4 It is not allowed to offer discounts in products prices or launch commercial contests by any means without obtaining a license from the Ministry. Chapter Three Recording, Investigation and Trial Article 5

Officials from the Ministry, the Ministry of Municipalities and Rural Affairs, and the Saudi Food and Drug Authority, appointed pursuant to a decision by the Minister after obtaining the approval of their relevant authorities, shall be liable, jointly or severally, for recording and establishing violations of the provisions of this Law and shall be considered judicial recording officers. The mentioned officials shall be under the liability and supervision of the Ministry. Article 6 If the judicial recording officer has compelling grounds to believe that the provisions of this Law are being violated, he may collect samples of the suspected product for analysis and file a report on the incident. The said report shall include all data necessary to verify the samples and the product in accordance with the Regulations. Article 7 A retailer shall be prohibited from disposing of a suspected product prior to the result of being passed by the test. Article 8 In case of food products, the competent authority shall test the product and release the result within a period not exceeding 15 days. The Regulations shall specify the periods required for the other products. Article 9 The judicial recording officers should not be prevented from performing their duties in inspecting and recording violations, accessing factories, stores, shops or others, or obtaining samples of the suspected products. The judicial recording officers shall provide proof of their identity as recording officers. They may close down a shop until the retailer informs the owner of the shop and grants them access to the shop.

Article 10 Pursuant to a resolution by the Council of Ministers, and upon the recommendation of the Minister in coordination with the Minister of Municipalities and Rural Affairs and the Head of the Saudi Food and Drug Authority, rules shall be issued for granting financial rewards to the officials referred to in Article (5) of this Law. Article 11 A reward of not more than (25%) from the collected fine shall be granted to any person, other than the officials referred to in Article (5) of this Law, who assists in exposing incidents of commercial fraud resulting in the arrest and conviction of violators in accordance with the Regulations. Article 12 The Bureau of Investigation and Public Prosecution shall have jurisdiction to investigate and prosecute violations set forth in this Law. Article 13 The Bureau of Grievances shall have jurisdiction to decide and give verdicts on all violations, disputes and claims for damages arising from the application of the provisions of this Law. Article 14 The seller, the person whomever the product is distributed on his behalf, managers of companies, cooperatives and establishments as well as shops shall be liable for all violations of the provisions of this Law, and each shall be subject to the penalties prescribed for violators. If any of them proves that the violation is due to reasons beyond his control, the penalty shall be inflicted solely on the violator.

Chapter Four Penalties Article 16 Any person committing a violation provided for in Article (2) of this Law shall be subject to a fine not exceeding SR 500 thousand, or imprisonment for a period of not more than 2 years or to both penalties. Article 17 Any person committing a violation provided for in Article (4) of this Law shall be subject to a fine not exceeding SR 50 thousand, or imprisonment for a period not more than 6 months or to both penalties. Article 18 A fine not exceeding SR 1 million, or imprisonment for a period of not more than 3 years or to both penalties shall be imposed in the following two cases: 1. If the fraud or the attempted fraud is combined with the use of false or nonstandard weights, measurements, measures, stamps or other testing devices; the use of means that would affect badly on the process of weighing, measuring or testing a product, or if the fraudulent product or the materials are harmful to the health of humans or animals. 2. If any of the violations provided for in Articles (3), (7) and (9) of this Law is committed. Article 19 Without prejudice to the penalties provided for in Article (18) of this Law, any person disposing of impounded (seized) products shall be subject to a fine equal to their value.

Article 20 Without prejudice to the penalties provided for in this Law, a verdict may be rendered to close the shop in violation for a period not exceeding one year for violations provided for in Article (2) of this Law. Article 21 In all cases where fraud is established, the fraudulent product must be destroyed or disposed of in any appropriate manner, and the tools used in fraud or deceit shall be confiscated. The Regulations shall specify the away of disposing of them. Article 22 Without prejudice to the aggrieved party's right to claim for damages arising from one of the violations provided for in this Law, a violator shall commit to withdraw the fraudulent product and repay the value thereof to the buyer in accordance with terms and procedures stipulated in the Regulations. Article 23 The Bureau of Investigation and Public Prosecution may request the imposition of a travel ban on any person proven by the investigation to be in violation of the provisions of this Law until a final judgment is rendered. In case of conviction, the competent authority shall order the deportation of the expatriate from the Kingdom after enforcing the judgment. The said expatriate may not be allowed to return to the Kingdom for work. Article 24 If a violator repeats a violation set forth in this Law within 5 years from the date of the final judgment, he shall be subject to a penalty not exceeding the double of the maximum penalty prescribed for the violation. If the violator further repeats the violation, he shall, in addition to the prescribed penalties, be banned from engaging in commercial activities for a period not exceeding 5 years.

Article 25 A summary of the final judgment of conviction for a violation provided for in the previous articles shall be published in two daily newspapers at the convicted person's expense, provided that one of the newspapers is published in the district where the violation occurred or the nearest district thereto. Article 26 Penalties provided for in this Law shall be imposed on any person participating in or instigating a violation. Article 27 In case of necessity or urgency, the Minister may order a provisional attachment of a product and withdraw it from the markets in case of suspected fraud, provided that the attachment order is referred to the Bureau of Grievances within a period not exceeding 72 hours, as stipulated in the Regulations, to confirm or annul the attachment. Chapter Five Concluding Provisions Article 28 The Minister shall issue the Implementing Regulations of this Law. Said Regulations shall be published in the Official Gazette within 90 days from the date of issuance. Article 29 This Law shall supersede the Anti-Commercial Fraud Law issued by the Royal Decree No. (M/11), dated 29/5/1404H (corresponding to 2/3/1984).

Article 30 This Law shall be published in the Official Gazette and shall come into effect after 90 days from the date of publication. Ministerial Resolution No. (155) Dated 6/1/1431H (corresponding to 23/12/2009) THE MINISTER OF COMMERCE AND INDUSTRY, Upon the authorities assigned to him thereto, After reviewing the Competences System of the Ministry of Commerce and Industry issued by the Council of Minister's Resolution no. (66) dated 6/4/1374H (corresponding to 2/12/1954), After reviewing the Anti-Commercial Fraud Law issued by the Royal Decree No. (M/19) dated 23/4/1429H (corresponding to 29/4/2008), And after reviewing the joint memorandum No. (5814/11) dated 29/12/1430H (corresponding to 16/12/2009) submitted by His Excellency the MCI Undersecretary for Consumer Affairs, and His Excellency the MCI Assistant Undersecretary for Legal Affairs, HEREBY DECREES THE FOLLOWING: Article 1 The Implementing Regulations of the Anti-Commercial Fraud Law shall be published with the attached formula. Article 2 This Resolution shall be published in the Official Gazette. Minister of Commerce and Industry

Abdullah bin Ahmed Zainal Alireza The Implementing Regulations of the Anti-Commercial Fraud Law General Provisions Article 1 The following words and phrases, wherever mentioned in these Regulations, shall have the meanings expressed next to them: Minister: Minister of Commerce and Industry. Ministry: Ministry of Commerce and Industry. Competent Authorities: the Ministry of Municipalities and Rural Affairs, and the Saudi Food and Drug Authority. Article 2 The product shall be considered as a (Fraudulent Product) in any of the following cases: a. Any product that has been altered or tampered with in any way, whether in its substance, nature, kind, type, shape, components, features, requirements, characteristics, origin data(manufacturing country) or quantity in terms of weight, measure, measurement, number, capacity, caliber or the validity date. b. Any product not conforming to the approved standard specifications or any of their items. Or any product that has been produced, manufactured, filled, stored, transported, or offered for sale in a manner not conforming to the applicable standard specifications. c. All fraudulent products pursuant to the following: 1) Any product no longer fit for utilization, use or consumption by humans or animals.

2) Any product whose validity date has expired. 3) If the product shows signs of damage or defect. 4) If the product's natural properties or components in terms of shape, color, taste or smell, have changed. 5) If the product contains worms, insects, larvae, human or animal wastes or other similar materials. 6) If the test result shows its unfitness for utilization. Article 3 a. Fraud of a product means to describe, offer for sale, or market a product using false, misleading or deceptive information in a manner not conforming to the reality. b. Preparations for committing fraud shall be considered as a sign of embarking on fraud. c. Preparations for committing deceit shall be considered as a sign of embarking on deceit. Article 4 Holding or having of a fraudulent product shall be considered with the intent of trading, if the item was recorded in the place of offering for sale, selling, storing, or manufacturing, or in the transportation means. Recording Violations Article 5 a. Whether the visit was paid upon a notice, complaint or inspection tour, the judicial recording officers affiliating to the Ministry and the Competent Authorities shall be liable, jointly or severally, for recording and establishing the violations of the provisions of this Law in accordance with the jurisdiction of each authority.

b. The judicial recording officers shall complete the procedures of establishing the violations of the provisions of the Law and the Implementing Regulations thereof, detected by the public recording officials. c. The judicial recording officers affiliating to any authority referred to in Paragraph (A) of this Article shall be liable for recording and establishing the violations of the provisions of this Law and the Implementing Regulations thereof in the regions, governorates, and centers freeing from any branch for such authorities. The violations shall be referred to the competent authority pursuant to the jurisdiction of each. The judicial recording officer, upon detection of a violation for the provisions of this Law that is not under the subject-matter jurisdiction of the authority thereof, shall record and establish the violation and refer it to the competent authority to complete the statutory procedures thereon. d. The Ministry and the Competent Authorities shall distribute business cards for the judicial recording officers affiliating to each in order to show them when recording violations. Article 6 The MCI liability and supervision on the judicial recording officers shall be regulated as follows: 1- Issuance of the Ministerial Resolutions which stipulate the appointment of judicial recording officers as well as cancellation of such appointment. 2- Verification of the judicial recording officers' commitment to enforce the provisions of the Law and the Implementing Regulations thereof as well as providing the authorities with the required directives in this regard. 3- Issuance of the decisions required to enforce the provisions of this Law and the Implementing Regulations thereof. The Competent Authorities shall be liable for enforcing such decisions.

4- Receiving of monthly reports from the Competent Authorities concerning the acts of the judicial recording officers. Article 7 In pursuit of performing their duties, the judicial recording officers shall have the right to: 1- Inspect, examine, and receive the notices and complaints related to the violations of this Law, as well as recording and establishing such violations. 2- Access and inspect the facilities comprising the products subject of the provisions of the Law and the Implementing Regulations thereof as well as the stores, warehouses, transportation means, and other buildings annexed to such facilities. The judicial recording officers may request to open the closed facilities once the violation is established or during the accrual working hours of the facility. In case of prevention, the officers may close down the suspected facility till they manage to access and verify the violation. 3- Record, and impound (seize) the products suspected to be in violation of the provisions of the Law and the Implementing Regulations thereof, as well as withdrawing samples from the products for inspection and analysis, seizing the documents related to the product, the facility, and employees, if needed, filing a report on the incident and allowing the disposition of the product, proven not to be defrauded. 4- Confiscate and damage the product, proven to be defrauded, in accordance with the cases specified in the Article (2) of these Implementing Regulations, as well as allowing the disposition thereof in accordance with the provisions of Article (15) of these Implementing Regulations. 5- Record the testimony of the violator immediately, if needed, or summon him to inquire about the violation and record his testimony later. The violator shall have the right to make his defenses, submit the documents related to the violation, and record them in a report.

6- Seek the help of the competent security authority, if needed. Article 8 a. When recording, impounding, seizing, confiscating, damaging, removing requisition of, or taking samples from the products; closing down the shop; preventing the shop from practicing the commercial activity, or recording the testimony of the violators, the judicial recording officer shall file a report on this incident, including the following: 1. The date of the report and the place where the violation was recorded. 2. The commercial data of the facility as well as the licenses issued to practice the activity. 3. The name of the judicial recording officer, as well as the name of the shop owner, the person who acts on his behalf, or any employee inside the shop, and the name of the person arrested during committing fraud or deceit. Then, each shall sign the report. 4. The name, quantities, and commercial data of the products, as well as the type of the violation, the place of recording the violation, and the tools used for fraud and deceit. b. The reports shall be made out in triplicate; the original form shall be attached to the case file, a photo-copy shall be submitted to the competent authority, and a photo-copy shall be delivered to the facility owner or the violator. Article 9 The judicial recording officer shall withdraw the samples suspected to be in violation of the provisions of the Law and the Implementing Regulations thereof, for inspection and analysis, in accordance with the following: 1. Establishing the incident of withdrawing the samples by a report. 2. Withdrawing the samples, whose quantities shall be determined according to the

impounded products and the type of the packages, in a random way. The judicial recording officer must take into consideration the approved specifications of the product or inspection requirements in terms of the number of samples withdrawn, as well as the method of storing, and transporting such samples by appropriate means. 3. Placing a label on the sample withdrawn, including the following data: a) The name of the sample and the owner thereof. b) The date of taking the sample. c) The serial number of the sample. 4. The data written in the label shall be kept in a record having serial numbers for each year. 5. The owner of the suspected sample shall not receive any charge or compensation for the samples withdrawn for analysis and inspection. As for the high-value products, they shall be sent back to the trader after inspection and proven as fit for utilization, if possible. Inspection and Analysis of Products and the Periods Needed for Each Article 10 The process of inspecting and reaching the result of the suspected sample should be done according to the following: a. The inspection, analysis and extraction of the result of the food products should be done within a period of not more than (15) days from the date of delivering the sample to the laboratory. b. The sample-withdrawing authority shall inform the trader of the result of inspecting the food products within a period not exceeding (7) days from the date of receiving the sample result in accordance with the notification procedures referred to in Article (11) of these Implementing Regulations, unless the result of

inspection and analysis requires to conduct much more analysis or inspect the product in specialized laboratories outside the Kingdom of Saudi Arabia. c. The inspection, analysis and extraction of the result of the non-food products should be done within a period of not more than (45) days from the date of delivering the sample to the laboratory. If the laboratory fails to analyze the sample within the mentioned period, the period may be extended only once, unless the product specifications require a longer period. It is noteworthy that the trader must be informed of this extension, and the laboratory must notify the authority, which sent the sample. d. The sample-withdrawing authority shall inform the trader of the result of inspecting the non-food products within a period not exceeding (7) days from the date of receiving the sample result in accordance with the notification procedures referred to in Article (11) of these Implementing Regulations. Procedures of Withdrawing the Fraudulent Product Article 11 The fraudulent product must be withdrawn in accordance with the following procedures: 1- The (producer-importer-distributor- seller) shall commit to withdraw the fraudulent product at his expense immediately after being aware of, notified, or informed of the violation at his address registered in the commercial register office, provided to the Chamber of Commerce and Industry, or via his PO Box, email, fax, or when the violation is recorded, or one of the employees is informed of the violation. 2- The violator shall commit to publish announcement at his expense concerning the withdrawal of the fraudulent product within a period of not more than 1 week from the date of disclosing the violation, or informing him thereof, given that the afore-mentioned announcement must be published in two daily newspapers; one of the newspapers must be published in the district where the main office is located, and the other where the violation occurred.

3- The Ministry and the Competent Authorities shall publish the announcement of withdrawing the fraudulent product in the mass media, and via the Portals thereof. Also, they shall order the Chamber of commerce and Industry and the Consumer Protection Association to publish the withdrawal declaration via their websites. 4- The violator shall commit to inform the competent recording body of the withdrawn and seized quantities regularly. The judicial recording officers affiliating to such bodies shall file the required reports. 5- The violator shall commit to withdraw the fraudulent product from the markets within a period not exceeding (15) days as from the date of disclosing the commercial fraud or being informed of the fraud, whichever comes first. 6- The fraudulent product, which has been withdrawn, shall be disposed of in accordance with the procedures set forth in Article (15) of these Implementing Regulations. Claim for Damages and Value Return Terms Article 12 a. The aggrieved person shall have the right of claiming for damages before the judicial body. b. The application of returning the value of the fraudulent product must be submitted to the competent judicial body within a period of not more than 30 days as from the date of purchase, unless the agreement, the seller obligations or the defect disclosure quires a longer period. c. The buyer may ask for returning the value of the fraudulent product pursuant to the following terms: a) The buyer must not be involved in defrauding the product, whether in terms of transportation, storage, or misuse. b) The buyer must submit the original form of the purchase invoice, the grand bill of sale, or the violator acknowledgment of selling the product thereto.

c) The value of the fraudulent product shall be returned to the buyer within period of not more than (15) days from the date of requesting such a value. The Provisional Attachment of the Suspected Product Article 13 a) In case of necessity or urgency, the Minister may order provisional attachment of a product and withdraw it from the markets in case of suspected fraud, as long as such a product is harmful for the safety and health. b) The procedures mentioned in the above-mentioned Paragraph shall be applied in case of receiving preliminary reports and information that suspect the occurrence of commercial fraud in the product. c) The provisional attachment order will be referred to the Bureau of Grievances within a period not exceeding (72) hours, with the supportive documents. Violations Referral, Investigation, and Prosecution Article 14 a) The recording body or the competent branch thereof shall be assigned to, after fulfilling the statutory procedures, refer the violation to the Bureau of Investigation and Public Prosecution or the competent branch thereof; given that the MCI Agency for Consumer Affairs must be provided with a photo-copy of the referral letter and a photo-copy of the recording report. b) The Bureau of Investigation and Public Prosecution shall be liable for investigating the violations of this Law, and filing the criminal case before the judicial body. c) The MCI Agency for Consumer Affairs shall be provided with a photo-copy of the sentence. Disposal of the Suspected Product

Article 15 In all cases where the commercial fraud is proven, the Ministry or the Competent Authorities shall, without waiting for the result of the violation complaint, confiscate and damage the fraudulent product, as well as confiscating the tools used in fraud and deceit. Such products and tools shall be disposed of in accordance with the following: a) Damage of the fraudulent and defective products and tools used in commercial fraud, which are no longer fit for utilization, at the expense of the violator. b) The unsold products, which can be utilized by the consumer, shall be delivered to the charitable associations to distribute them after removing the signs of commercial fraud and obtaining the approval of the MCI Agency for Consumer Affairs, or the representative thereof. c) The products and tools used in commercial fraud shall be offered for sale in an auction after removing the signs of commercial fraud; given that the sale revenue shall be sent to the State's treasury after deducting expenses arising therefrom. Article 16 In the application of the provisions of Article (19) of the Anti-Commercial Fraud Law, the prices of the impounded (seized) products, which are subject of disposition, shall be calculated according to the price of sale. Rewards for Notification of Violations Article 17 A. In the application of the provisions of Article (11) of the Anti-Commercial Fraud Law, concerning the granting of a reward of not more than (25%) from the collected fine to any person, other than the competent officials, who assists in exposing incidents of commercial fraud resulting in the arrest and conviction of

violators, the MCI or the Competent Authorities shall, after the issuance of a final verdict proving the violation, do the following: 1. Preparing a record including the necessary information of each informant, such as the place of residence, and providing the informant with evidence of recording his notice. 2. The MCI and the Competent Authorities must inform the informant of the notice result pursuant to the final verdict. B. The informant shall have the right to claim for rewards before the judicial body. Commercial Discounts Article 18 The commercial institutions have no right to declare comprehensive and partial discounts in the commodities prices, except after obtaining a license from the Ministry or its competent branch thereof in accordance with the following conditions: 1. The commercial institution shall notify the Anti-Commercial Fraud General Department or the MCI's competent branch of the desire of offering discounts at least one month before the launch of discounts. Such an application must include the following: a) The reasons of offering discounts. b) The period of discounts as well as the beginning and ending dates. c) A list of commodities subject of discounts showing the actual price of each commodity at the time of the application, as well as the price after discount and the rate of discount. d) The commercial institution must attach a bill proving the sale at the actual price specified in the commodities list during different times, or undertaking certified by the facility owner that the prices written on the commodities labels are the same prices at which the commercial institution has sold its commodities during different times before submitting the application of discounts.

2. The Anti-Commercial Fraud General Department or the MCI's competent branch shall be liable for reviewing the application, and issuing the required license within a period of not more than (15) days from the date of submitting such an application if the license conditions are met. In case of rejection, the Anti- Commercial Fraud General Department shall inform the institution of rejecting the application within10 days from the date of registration thereof, and it should mention the reasons of rejection. 3. The license must include the following : a) The name and address of the shop, licensed to offer discounts. b) The period of discounts as well as the beginning and ending dates. c) A list of commodities subject of discounts d) The rate of the declared discount. 4. Any person owing more than one shop in a city may obtain only a license for all shops, as long as the activity of such shops is the same. The names and addresses of the shops offering discounts must be clearly mentioned in the license. 5. The licensee must place the license or a photo-copy thereof in an apparent place in each shop. 6. The licensee must keep the certified price list or a photo-copy thereof within each shop during the discount period, as well as the commodities documents and bills included in the list. 7. The general rate of discounts must not be of less than 10% of the price applied one month before the launch of discounts. If the discount rate exceeds 30% of the product price before discounting, the owner of the shop must submit bills proving the sale at that price in different times. 8. The shop must place labels on the products subject of discounts, showing clearly the price before and after the discount. During the period of discounting, it shall

not be allowed to offer low-price commodities other than those mentioned in the commodities list covered by the license. 9. Declaration of comprehensive discounts shall be allowed only if the whole commodities available in the shop are subject of the comprehensive discounts. On the other hand, the declaration of partial discounts shall be allowed for a rate of not less than 50% of the commodities available in the shop. If the rate is less, the seller shall not have the right to declare any discounts by any means, and instead, shall mention this discount by placing a label on the commodity, showing the price before and after discounts. 10. The commercial institution shall have the right to offer discounts in each shop three times a year, given that the discount period must not exceed 90 days throughout the year. 11. As an exception of the provisions of the aforementioned Article, it shall be allowed to declare general discounts in the prices for 6 months as maximum in case of the final liquidation of the shop due to cessation of performing the commercial activity, change of the business type, renewal of the shop comprehensively, or the transfer thereof from a place to another. 12. It shall not be allowed to declare discounts by any means before their launch by more than 15 days. Also, the license number and the actual discount rate must be clearly mentioned in the form of declaration. If the said declaration is placed on the shop window, it shall not be allowed to place it more than a week before the launch of discounts. Commercial Contests Article 19 The commercial institutions shall not have the right to launch or declare commercial contests, except after obtaining a license from the Ministry or its competent branch thereof in accordance with the following: 1- The commercial institution shall submit an application to the Anti-Commercial

Fraud General Department or the Ministry's competent branch, according to the main office thereof, asking for launching and declaring a contest at least 30 days before the date of launching the contest. 2- The license application must include the following data: a) The title and purpose of the contest. b) The territorial scope of the contest. c) The date of starting and ending the contest. The contest period must not exceed for more than (60) days. d) The date of declaring the contest results and the deadline scheduled to present the awards. This date must not exceed (30) days from the date of ending the contest. e) The contest program and the way of prescription must be clearly mentioned. f) The awards presented in the contest and evidence of owing such awards. g) The number of contest coupons and a sample of it thereof. 3- The Anti-Commercial Fraud General Department or the Ministry's competent branch shall be liable for reviewing the application within a period of not more than 7 days from the date of submission. If conditions are met, the license shall be issued. But if rejected, the General Department shall inform the institution of rejection and the reasons thereof within 10 days from the date of submitting the application. 4- The license must include the name of the licensee, as well as the beginning and ending dates and the territorial scope of the contest. 5- The commercial institution shall have the right to obtain a license for launching a contest twice a year, given that the contest period must not exceed 60 days in each time. 6- The contest must not require purchase for subscription, or place the coupon inside the commodities. 7- The common price of commodities must not be increased during the contest.

8- If a competitor repeats the winning of an award more than once, he shall obtain only the first-won award. 9- Neither the licensee, nor children, spouse, parents, employees thereof shall have the right to participate in the contest. 10- The contest must not include any activities that violate the principles of the Islamic law (Shari'a) and the norms established in the Kingdom. 11- A committee shall be formed to sort the results of the contest, under the leadership of a representative from the Ministry or the Chamber of Commerce and Industry. 12- The committee shall prepare a report including the contest results, the names and addresses of winners, and the awards obtained. The contest results shall be published at least once in the same mass media which declared the launch of the contest. 13- The commercial institution shall present the awards to the winners, within a period not exceeding (7) days from the date of sorting the results. 14- The MCI license number must be published in any announcement concerning the contest.