UAE Retailers Will Have Just 24 Hours To Remove Fake Goods Under New Anti-Commercial Fraud Law

(MENAFN- Khaleej Times) A new anti-commercial fraud regulation is giving suppliers a strict one-day deadline to pull counterfeit products from shelves. Under the new rules, suppliers must immediately stop selling or offering adulterated, spoiled, or counterfeit items.

They are required to withdraw these goods from markets and warehouses within 24 hours of receiving notification from the Ministry or the competent authority.

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The supplier must also notify all points of sale and entities that received the goods, ordering them to pull the products from their shelves within the same 24-hour timeframe. They must then provide the Ministry with evidence that the withdrawal has been carried out.

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These were revealed at a media briefing held on Thursday at the Ministry of Economy and Tourism's Dubai headquarters in DIFC.

If a supplier fails to comply within the specified time, authorities will step in. The Ministry or the competent authority will take necessary measures to withdraw the goods from markets and warehouses at the supplier's expense within the next 48 hours. If the supplier cannot be reached, authorities will carry out the withdrawal themselves and recover the costs from the supplier once contacted.

It was last month that the ministry rolled out the enforcement of the new executive regulations of the Anti-Commercial Fraud Law, issued pursuant to Cabinet Decision No. (107) of 2026. It established a comprehensive framework for tackling improper commercial practices, including importing, manufacturing, storing, transporting, promoting, selling, or trading counterfeit, adulterated, or spoiled goods.

Public notification

The regulations also require a public announcement about the withdrawal of fraudulent goods. This must be done within 48 hours of the notification, through media designated by the Ministry or the competent authority. The announcement must clearly state the details of the goods and be published in both Arabic and English.

The timeframe can be shortened if the goods pose risks to human or animal health or safety, or to the environment.

Other key provisions of the regulation include:

Proactive market oversight through regulated inspection procedures and clear protocols for dealing with counterfeit goods

Destruction procedures requiring counterfeit goods to be destroyed within 15 working days of a court ruling or Supreme Committee decision

Enhanced coordination and data exchange between the Ministry and competent authorities

Inspections

Authorities conducted 10,023 inspection tours relating to commercial fraud during the first quarter of 2026, which resulted in the detection of 189 violations across the UAE, the Ministry of Economy and Tourism (MoET) has revealed. The inspections, carried out in collaboration with local economic and supervisory authorities, form part of intensified national efforts to combat counterfeit, adulterated, and fake goods in the market.

Safeya Al Safi, Assistant Undersecretary for the Commercial Control and Governance Sector at the MoET, emphasised that the UAE maintains "zero tolerance towards any commercial fraud practices or trading of counterfeit and fake goods in the markets."

The ministry has been working to enhance compliance by combining legislative, supervisory, and modern technological tools. Al Safi confirmed that authorities are now adopting artificial intelligence to monitor market activity and detect potential violations.

"We are using [AI] to capture open sources and electronic platforms," she explained. "We have a lot of electronic trading, so we are monitoring this through intelligence systems."

The ministry is also continuously tracking the costs of basic commodities through a price monitoring system to ensure market stability.

Recognising the growth of online shopping, authorities have strengthened cooperation with e-commerce platforms. Al Safi said e-commerce operators are included in the law and most are cooperative.

"If they are not aware about the law, we are informing them, but we also take the actions either to withdraw those products or to put a clear message to the audience or the customers," she stated. "We have direct communication, especially for the platforms existing in UAE."

Consumer and market protection

Al Safi affirmed that combating commercial fraud represents "a fundamental pillar for consolidating a national economy that is efficient and transparent, and that stimulates investment and innovation."

She described the issuance of the executive regulations as "a new milestone in developing market control mechanisms in line with best practices, enhancing consumer protection against counterfeit and fake goods, and regulating seizure and inspection procedures."

The ministry called upon commercial establishments, trading companies, suppliers, and distributors to adhere to the provisions and requirements of the regulation. It also encourages consumers to report any non-compliant practices, describing them as "key partners in safeguarding markets and reinforcing efforts to combat commercial fraud."

Conciliation procedures

The law also offers a way for businesses to settle violations without going through the full penalty process. Any trader or their representative can request for conciliation within 10 working days of being told about the violation and the fine, or within 10 days of their objection being rejected.

The Ministry or the local authority will look at the request and make a decision within 15 working days. If they do not respond within this time, the request is automatically considered rejected. If the request is accepted, a date will be set to sign the conciliation agreement. The trader must pay the agreed amount within five working days of signing.

To be eligible for conciliation, the trader must:

Have not received any penalty under the Anti-Commercial Fraud Law in the past 12 months

Have committed the violation by mistake or carelessness, not on purpose

Have fixed the problem that caused the violation

Have paid the conciliation amount before the request is approved

Even if a violation is settled through conciliation, it still counts as a violation. It also does not protect the trader from being sued for any damage caused by the fraudulent goods. The ministry says the goal of the law is not just to punish, but to encourage businesses to follow the rules, protect consumers, and build trust in the UAE market.

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