Commercial Fraud in Saudi Arabia: Penalties, Reporting and Protecting Your Business

Counterfeit goods sold as genuine, expired products or short weight are commercial fraud under the Anti-Commercial Fraud Law, enforced by the Ministry of Commerce.

What counts as commercial fraud?

• Selling counterfeit, adulterated, spoiled or expired goods.
• Misleading quantity, weight, origin or ingredients.
• False labels or advertising, or changing expiry dates.
• Using or imitating another's trademark. Read trademark registration.
• Holding fraudulent goods for sale.

Penalties in general

Fines and prison depending on gravity, confiscation and destruction of goods, temporary or permanent closure, and publication of the violation at the offender's expense, with heavier penalties for repeat offences or risks to health. Exact limits are in the current official text.

Reporting as a consumer

1. Keep the invoice, product and photos, and the seller's details.
2. Report to the Ministry of Commerce through its official channels.
3. Claim a refund and compensation; if the seller deceived you deliberately, read financial fraud.

Protecting your business

• Buy from reliable suppliers with invoices and conformity certificates.
• Include authenticity warranties and indemnities in supply contracts. Read common contract mistakes.
• If non-compliant goods are found, show your good faith and source immediately.

Frequently asked questions

Is a trader liable if they did not know about the fraud?

Knowledge and good faith affect liability and the penalty, but the trader has a duty to check, which is why purchase documents help a great deal.

Are online stores covered?

Yes. They are also subject to the E-Commerce Law and its requirement to disclose the store's details.

Can a violation decision be challenged?

Yes. You can file a grievance against the authority's decision and object before the competent court within the legal periods.

Facing a fraud violation?

Usus Law Firm handles commercial cases and grievances against decisions as part of administrative cases, in Riyadh and Tabuk, and advises in English.

This article is general legal information and is not a substitute for advice on your specific case. Court proceedings in Saudi Arabia are in Arabic; the official Arabic text of each law prevails.