Business | Economy
Business in fakes booms in absence of legal framework
Dealers in counterfeit goods in Abu Dhabi were let off lightly despite recent raids having unearthed substantial violations.
- By Ahmed A. Elewa, Senior Reporter
- Published: 00:04 July 21, 2008
Abu Dhabi: Dealers in counterfeit goods in Abu Dhabi were let off lightly despite recent raids having unearthed substantial violations.
More than 4,000 counterfeit goods were found in Abu Dhabi during the past nine months, according to the Commercial Protection Unit of Abu Dhabi's Department of Planning and Economy (DPE).
The violations included the absence of the label of origin, counterfeiting international brands, and violating ethical codes.
Nevertheless, the goods in question were neither confiscated nor the offenders sufficiently punished, as the department lacks the necessary mandate to take such effective legal actions.
"A new local consumer protection law is currently under consideration, as a necessary step to establish a consumer protection unit within the framework of the department," a DPE official told Gulf News.
There was no one at the Consumer Protection Department of the Ministry of Economy available to comment, while the only action taken by the Commercial Protection Department was to issue warnings or penalties against the violators.
"We held 97,339 inspections, visits, monitoring and observing campaigns during the period from October 2007 to June 2008, through our team of 69 employees," Mohammad Rashed Al Romeithi, director of the Commercial Protection Department, said.
"These campaigns are not only intended to enforce a sound monitoring mechanism that entails strict penalties, but to spread awareness among traders and consumers as well," Al Romeithi said.
The campaigns targeted a wide variety of issues including verifying the validity of commercial licences, and that the scope of activities conform to these licences.
Questions
"Finding these counterfeit goods in the market poses serious questions about the efficiency of measures applied by local and federal customs authorities at points of entry," the official said, explaining that the department will only be able to confiscate counterfeits and suspend violating establishments when the necessary legal framework is in place.
"The campaigns resulted in issuing warnings and penalties against 21,328 violators, of which 15,476 responded by adjusting to the legal requirements, while the department is closely monitoring the reaction of the remaining violators," Al Romeithi revealed.
The campaigns included co-ordinated inspections with Abu Dhabi National Oil Distribution Company (Adnoc Distribution) for 2000 diesel retail outlets, as well as employers accommodating labour at work sites and offices.
Breach
No action taken
According to federal labour laws, accommodating employees at workplaces entails a Dh10,000 fine and the suspension of the establishment for three to six months. Nevertheless, no such action was taken against violators because of the absence of the legal framework, while the Ministry of Labour was not informed of these violations to take the necessary action.
- A.A.E.
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