New rules have been introduced to combat commercial fraud in the United Arab Emirates (UAE), stipulating that suppliers have a strict one-day deadline to remove counterfeit products from store shelves. Under these new provisions, suppliers are obligated to immediately cease the sale or offering of goods that are spoiled, falsified, or counterfeit.
These goods must be withdrawn from markets and warehouses within 24 hours of receiving notification from the Ministry or competent authority. Furthermore, the supplier must notify all points of sale and organizations that received the product and require them to remove the goods from shelves within this same 24-hour period. Subsequently, the supplier must provide the Ministry with proof that the removal has been carried out.
If the supplier fails to comply with the established deadline, authorities will intervene. The Ministry or competent authority will take necessary measures to remove the goods from markets and warehouses at the supplier's expense within the following 48 hours. If the supplier cannot be located, the authorities will carry out the removal themselves and subsequently reimburse the supplier after establishing contact.
Last month, the ministry began implementing the executive provisions of the Law on Combating Commercial Fraud, which was issued based on Cabinet Resolution No. (107) of 2026. This law establishes a comprehensive framework for countering illegal commercial practices, including the import, production, storage, transportation, promotion, sale, or trade of counterfeit, falsified, or spoiled goods.
The provisions also mandate public announcement of the withdrawal of fraudulent goods. This announcement must be made within 48 hours of notification through media designated by the Ministry or competent authority. The announcement must clearly state the details of the goods and be published in both Arabic and English.
The deadline may be shortened if the goods pose a threat to the health or safety of people or animals, or to the environment.
Other key aspects of this regulation include proactive market surveillance through regulated inspection procedures and clear protocols for dealing with counterfeit products. Disposal procedures are also provided for, requiring that counterfeit goods be destroyed within 15 working days after a court or Supreme Committee decision. Coordination and data exchange between the Ministry and competent authorities have been strengthened.
The Ministry of Economy and Tourism reported that in the first quarter of 2026, 10,023 inspections related to commercial fraud were conducted, resulting in the identification of 189 violations across the UAE. These checks, conducted jointly with local economic and supervisory bodies, are part of national efforts to combat counterfeit, falsified, and fake goods in the market.
Safia Al Safi, Deputy Assistant Minister for Commercial Control and Management Sector at the Ministry of Economy and Tourism, emphasized that the UAE adheres to the principle of 'zero tolerance for any practices of commercial fraud or trading in counterfeit and fake goods in the markets.' The Ministry is working to enhance compliance by combining legislative, supervisory, and modern technological tools. Al Safi confirmed that authorities are now using artificial intelligence to monitor market activity and detect potential violations.
She explained: 'We use [AI] to gather open-source and e-platform data. We have a lot of e-commerce, so we track it through intelligence systems.' The Ministry also continuously monitors the price of essential goods using a price monitoring system to ensure market stability.
Recognizing the rise of online shopping, authorities have strengthened cooperation with e-commerce platforms. Al Safi noted that e-commerce operators are included in the law, and most of them are cooperative. She added: 'If they are unaware of the law, we inform them, but we also take action either to withdraw these products or to place a clear message for the audience or customers.' She stressed the existence of a direct link, especially with platforms operating in the UAE.
Al Safi stated that combating commercial fraud is a 'fundamental pillar for consolidating a national economy that is efficient and transparent and stimulates investment and innovation.' She characterized the issuance of executive provisions as 'a new stage in the development of market control mechanisms in line with best practices, enhancing consumer protection against counterfeit and fake goods, and regulating confiscation and inspection procedures.'
The Ministry has called upon commercial enterprises, trading companies, suppliers, and distributors to comply with the regulatory provisions and requirements. It also urges consumers to report any non-compliant practices, calling them 'key partners in protecting markets and strengthening efforts to combat commercial fraud.'
The law also provides businesses with the option to settle violations without going through the full penalty process. Any trader or their representative can request conciliation within 10 working days of being notified of a violation and fine, or within 10 days of their objection being rejected. The Ministry or local authority will review the request and make a decision within 15 working days; if no response is received within this time, the request is automatically considered rejected. Upon accepting the request, a date for signing the settlement agreement will be set, and the trader must pay the agreed amount within five working days of signing.
To participate in conciliation, the trader must meet several conditions: not have any fines under the Law on Combating Commercial Fraud in the last 12 months; have committed the violation by mistake or negligence, not intentionally; have rectified the issue that caused the violation; and pay the conciliation amount before the request is approved. However, even if the violation is settled through conciliation, it is still recorded as a violation and does not exempt the trader from a lawsuit for compensation for any damage caused by the fraudulent goods. The Ministry notes that the goal of the law is not only punishment but also encouraging businesses to follow the rules, protect consumers, and strengthen trust in the UAE market.
