Dubai: Tough legal action will be taken against shopping outlets and merchants that do not hand back the exact change to their customers, a senior official said.
Dr Hashim Al Nuaimi, director of the Consumer Protection Department at the UAE Ministry of Economy, said consumers must play a proactive role to stop the growing practice of ignoring coins of smaller denominations.
"It is an illegal practice and the money that is collected every day in this way, which is worth thousands, is also illicit," he said.
Retailers and outlets who don't tender the exact change to the consumer, even if it is one fils, would face penalties, Al Nuami added.
In case of violations, he urged consumers to contact the ministry on the toll-free number 600522225 to register their complaints.
Read more:
- Retailers will face penalties, change in attitude needed
- Readers unaware that smaller fils coins existed
- Customers lose dirhams over fils
- Firms cashing in but economy not suffering
- Exact change not always welcome
- Consumers in UAE must ask for exact change
- Related video: UAE is being shortchanged
- Special Report: Don't leave without your 10 fils
- UAE Central Bank continues to mint all six denominations
- Expert's view: Pricing strategy is all in the numbers
- Editorial: Consumers in UAE must ask for exact change
Gulf News estimated the total sum of fils lost in small transactions at about Dh50-Dh 100 million annually.
Dr Juma Bilal, head of the consumer protection association, called for creating a charity fund from small coins left from small transactions. He urged the creation of a mechanism to source them from outlet's account and spend it on a good cause.
The consumer society will look into this issue seriously and will come up with a proposal to collect and spend this money, Bilal added. Basically, he said, "We should keep in mind that returning of small coins in any transaction is the right of the consumer who also has the right to give it to charity."
In most cases, he said, clients do not demand smaller fils coins.
"This is different from the case when a cashier does not offer to pay back smaller coins at all to keep it for himself or for the shop," Dr Bilal said.
No shortage
"Shops, supermarkets and commercial outlets dealing with small transactions sometimes pretend they have no small change to return, but this is not the case, because such small coins can be ordered from banks which said that they did not have shortages in supplying shops with small coins," one banker said.
Coins are available in six dominations of 1 fils, 5 fils, 10 fils, 25 fils, 50 fils and Dh1 in addition to few commemorative coins and Dh5 or more.
Dr Bilal warned that cheating consumers and denying their rights in paying exactly against what they have purchased is not acceptable and the association will work on programmes to enhance the level of awareness among consumers.
Retailers will face penalties
The UAE Ministry of Economy has warned of tough action against business establishments that deny customers their rightful change, while the head of Dubai's consumer protection agency has suggested that the creation of a charity fund could better account for the small change that is often neglected during transactions.
Al Nuaimi, Director of the Consumer Protection Department at the Ministry of Economy, told Gulf news: "The Ministry of Economy is ready to take tough action against retailers and outlets who don't give back consumers their rightful change taking advantage of consumers' lack of knowledge on what denomination of coins are being minted."
Unfair and deceptive practices would be strictly monitored under the Federal Consumer Protection Law number 24/2006, Al Nuaimi said. "It is necessary to evolve statutory measures to make producers and traders more accountable to consumers."
Most customers don't insist on exact change following their everyday purchases if it is less than 50 fils, overlooking how much smaller denomination coins could add up to over a period of time.
An investigation by Gulf News has revealed that at least Dh50-100 million is lost in transactions annually by way of uncollected change. However, it is unclear where these millions go.
Watch video: Consumers feel shortchanged
Meanwhile, the UAE Central Bank and many banks operating in the country have said they are not aware of any shortages of coins in the UAE. The UAE Central Bank continues to mint all six denominations of coins that are legal tender including 1 fils, 5 fils, 10 fils, 25 fils, 50 fils and Dh1 in addition to a few commemorative coins.
Punitive measures
Al Nuaimi said: "All retailers and outlets in the UAE who don't tender the exact change to the consumer, even if it is one fils, would be subject to penalties. It is illegal practice and the money that's collected every day out of these fractions — which [are] worth thousands — is also illicit. Our law was developed to protect consumer rights and prohibit cheating by imposing strict penalties. Moreover, clause 466/2007 under the Consumer Protection Law [can] impose strict penalties on retailers and outlets."
Penalties envisaged under the law vary from a warning for the first infraction to the freezing of a trader's licence and fines imposed on retailers (ranging from Dh500 to Dh20,000) to closure of the business, he added.
Al Nuaimi urged all consumers to be aware of their right and to demand the change due to them irrespective of the amount.
In case of violations, he urged consumers to contact the ministry on the toll-free number 6005225 to register their complaints and to communicate directly with the department if they were in need of any assistance or wanted to initiate an inquiry.
Talking about the ministry's role in curbing such practices, he said: "the ministry did warn all outlets, shops, restaurants and traders that they have to hand back the change to consumers."
He added: "Again, we will distribute brochures to educate people about the Consumer Protection Law at every shopping centre and area in Dubai and we will instruct all our inspectors in the ministry and the economic departments across the emirates to better control this issue. Our duty is to monitor whether the retailers are running their activities in a healthy business environment and meeting their obligations towards the consumers."
Charitable goals
Lending a different perspective to the issue, Juma Bilal, head of the consumer protection association in Dubai, said a way had to be found to ensure the money lost in such transactions was put to good use.
He said that the money thus lost would be hard to ignore if it were added up. "Our duty is to look seriously into this issue and try to find a way to utilise this money which [we] have no idea where it goes. The best way to get benefit out of this small change is to create a fund for charity."
He added: "We are ready as a consumer protection society to contact every outlet whether big or small and discuses with them how we can get use this money for charity." Calling for greater awareness among consumers, he urged them to insist on being paid exact change.
"Consumers should pay more attention to even ask for 10 fils back as it is worthwhile and can add up to thousands and millions every year. These fractions are not useless if dropped in any of the charity boxes next to each cashier. It can achieve a lot of things in [terms of] helping society."
Ministry directive
The UAE Ministry of Economy has urged all consumers to be aware of their rights and to demand the change due to them irrespective of the amount.
In case of violations, consumers are urged to contact the ministry on the toll-free number 6005225 to register their complaints.
