New commercial fraud regulations come into force in the UAE today

The UAE today officially begins implementing Cabinet Resolution No. (107) of 2026 concerning the Executive Regulation of Federal Decree-Law No. (42) of 2023 on Combating Commercial Fraud.

Under the new decision, suppliers are required to immediately stop selling or displaying any non-compliant product and take decisive action to recall counterfeit, adulterated or spoiled goods from markets and warehouses within no more than 24 hours from the date they receive an official notification.

Article (5) of the decision, which sets out mechanisms for recalling non-compliant goods, stipulates that when the presence of adulterated, spoiled or counterfeit goods is established and a recall decision is issued, the Ministry of Economy and Tourism or the competent authority, as applicable, may initiate procedures by notifying the supplier through approved notification channels to immediately stop selling and displaying the goods.

The supplier must then, within no more than 24 hours of receiving the notification, take the necessary measures to withdraw the goods from markets and warehouses. It must also notify all sales outlets and entities supplied with the goods that they must recall them within no more than 24 hours of receiving the notification, and take the necessary steps to recover the goods and remove them from circulation.

Suppliers must also provide the Ministry of Economy and Tourism or the competent authority with evidence that the notification, recall and recovery procedures have been implemented.

The decision also requires the Ministry of Economy and Tourism or the competent authority to seize adulterated, spoiled or counterfeit goods and keep them in designated locations at the expense of the violator, who is prohibited from disposing of them in any manner.

The authorities must also inform the public and warn consumers against purchasing or using such goods, while providing details of their type, specifications and the trademarks they carry.

Article (8) of the regulation sets out the procedures to be followed if a supplier fails to recall adulterated, spoiled or counterfeit goods. If the supplier does not recall the goods within the 24-hour deadline, the Ministry or competent authority must, as applicable, take the necessary measures within the following 48 hours to remove the goods from markets and warehouses, at the supplier’s expense.

Meanwhile, Article (20) establishes controls for imposing an administrative fine on a person who knowingly deals in commercial fraud. Without prejudice to any more severe penalty prescribed by the decree-law, the Ministry or competent authority may impose an administrative fine where it is established that the person knew, or should have known by virtue of their profession, trade or experience, that the adulterated, spoiled or counterfeit goods, or materials used to adulterate them, were harmful to human or animal health and safety.

The provision identifies four main cases:

First: Where the adulterated, spoiled or counterfeit goods, or materials used in their adulteration, involve medicines, agricultural produce or organic food products.

Second: Where the person reintroduced adulterated or spoiled goods into circulation or consumption despite their established unsuitability for use.

Third: Where the person purchased adulterated, spoiled or counterfeit goods with the intention of putting them into circulation and making unlawful profit, whether by reselling them in their original condition, modifying them or recycling them.

Fourth: Where the person engaged in promotion, marketing or misleading or deceptive advertising of such adulterated, spoiled or counterfeit goods, or provided false or inaccurate information regarding their nature, quality, source or ingredients.

The regulation also grants judicial officers powers to deal with suspected goods, including inspecting shops, warehouses, factories and establishments, examining goods and taking the necessary legal measures. These measures include placing suspected goods in the supplier’s custody and at the supplier’s expense while they undergo inspection and analysis.

Strict procedures for recalling adulterated, spoiled and counterfeit goods, with penalties of up to Dh2 million

The UAE is entering a new phase of tighter market oversight and stronger action against commercial fraud with the implementation of the new Executive Regulation of Federal Decree-Law No. (42) of 2023 on Combating Commercial Fraud, under Cabinet Resolution No. (107) of 2026, issued on July 13, 2026 and published in Federal Official Gazette No. 827.

The new regulation translates the provisions of the law into more detailed operational procedures covering inspection, seizure, recall of non-compliant goods, their return to their source, destruction and recycling. The framework is designed to strengthen the speed of response to products that could pose risks to consumers’ health and safety or infringe the rights of trademark owners.

A key feature of the new system is speed. Once notified of a recall, a supplier must begin withdrawing the product from the market within no more than 24 hours, while a recall notice must be published in both Arabic and English within 48 hours.

The provision does not, strictly speaking, mean that all adulterated, spoiled or counterfeit goods must be completely destroyed within 24 hours. Rather, the supplier is required to begin the recall and withdrawal process within 24 hours of receiving the notification.

This is an important distinction because the regulation establishes a comprehensive process for dealing with non-compliant goods, beginning with their detection and verification, followed by their seizure or withdrawal from markets and warehouses, and ultimately determining how they should be dealt with.

Depending on the circumstances, the goods may be returned to their country of origin or source, used or recycled where permitted, or destroyed in accordance with the applicable legal requirements.

This approach is based on Article (5) of Federal Decree-Law No. (42) of 2023, which requires suppliers to withdraw adulterated, spoiled or counterfeit goods from markets and warehouses, either voluntarily or upon an order from the Ministry or competent authority. Suppliers must also notify relevant parties and announce the recall through appropriate means.

The supplier is responsible for the costs associated with recalling, disposing of, destroying or returning the goods to their source.

The law provides a broad definition of commercial fraud. The offence is not limited to physically altering a product; it can also include providing false or misleading commercial information concerning the nature, quantity, essential characteristics, source, origin or validity of the goods.

The law separately addresses spoiled goods, defined as products that are no longer wholly or partially fit for use, exploitation or consumption.

It also addresses counterfeit goods, referring to products that, without authorisation, carry a trademark identical or similar to a legally registered trademark.

Accordingly, a non-compliant product is not simply viewed as a low-quality item. It may fall within a wider legal framework covering consumer health and safety, intellectual property protection, the prevention of commercial deception and the integrity of market competition.

The new regulation establishes a clearer process involving federal and local authorities.

Competent authorities conduct inspections, verification and, where necessary, sampling. The Ministry of Economy and Tourism may intervene in specific circumstances, including where the competent local authority fails to take the necessary measures within the prescribed period, where the goods have been distributed across more than one emirate, or where they pose serious risks.

Judicial officers are granted powers to inspect non-residential premises, take random samples and refer them for analysis, with the supplier bearing the cost of testing in accordance with the regulation.

The published details of the regulation indicate that analysis procedures may take up to 15 working days in ordinary cases, with shorter periods applying to perishable goods.

This highlights the importance of distinguishing between the 24-hour deadline for starting the recall and the subsequent technical and legal procedures required to determine how the goods should ultimately be dealt with.

Not every suspected product is destroyed immediately. Some cases are subject to inspection, verification and legal procedures before a final decision is made regarding their disposal.

Recall notices must be published within 48 hours.

The regulation does not stop at requiring suppliers to act quickly. It also introduces an important public-information requirement aimed at protecting consumers.

When a product is recalled from the market, the recall announcement must be published in both Arabic and English within 48 hours. This enables consumers to identify the affected product and take appropriate action, particularly when the product has already reached a large number of consumers.

The measure represents a shift from a regulatory model focused primarily on identifying products inside shops or warehouses to a more comprehensive approach that follows the product throughout its lifecycle after it reaches consumers.

The importance of the new regulation lies in its role in bridging the gap between the legal provisions and their practical implementation.

Federal Decree-Law No. (42) of 2023 requires suppliers to recall adulterated, spoiled or counterfeit goods, while leaving the detailed procedures, controls and deadlines to the Executive Regulation.

Under Article (25) of the law, the Cabinet was tasked with issuing the Executive Regulation and the decisions necessary to implement the law within six months of its entry into force.

During the transitional period, the law also maintained existing regulations and decisions to the extent that they did not conflict with its provisions, pending the issuance of the new legislative framework.

The new regulation therefore updates the implementation procedures in line with the new law, which replaced Federal Law No. (19) of 2016 on Combating Commercial Fraud.

One of the clearest messages emerging from the new framework is that a supplier’s responsibility does not end once a product has been placed on the market.

Under the law, the term “supplier” covers a broad range of parties involved in the product supply chain, including importers, exporters, manufacturers, producers, marketers, sellers, holders, warehouse operators, transporters and exhibitors, depending on the nature of the activity.

A supplier cannot escape liability simply by claiming that the consumer knew the goods were adulterated, counterfeit or spoiled. The law expressly provides that a party’s knowledge does not exempt the supplier from the legally prescribed penalty.

At the same time, the law protects consumers acting in good faith by requiring suppliers to refund the value of adulterated, spoiled or counterfeit goods, or replace or exchange them, according to the preference of the consumer acting in good faith, without prejudice to their right to seek compensation.

Destruction is one of the key mechanisms for dealing with goods that cannot be allowed to return to circulation.

The new framework regulates the disposal of non-compliant products to ensure that they do not return to the market either directly or indirectly.

Depending on the nature and condition of the goods, the procedures may include returning them to their source, disposing of them, destroying them or recycling them where permitted under the applicable controls.

The Ministry of Economy and Tourism has emphasised that the legislative framework for combating commercial fraud establishes clear procedures for dealing with adulterated, spoiled and counterfeit goods, including mechanisms for recalling products and destroying or recycling counterfeit goods.

In practical terms, destruction represents a final stage that is distinct from simply recalling a product. A recall prevents the product from continuing to circulate in the market, while destruction, where required, ensures that the product cannot subsequently be reused, consumed or placed back on the market.

The new framework is not limited to preventive measures. The law imposes stringent criminal penalties on violators.

Article (17) of Federal Decree-Law No. (42) of 2023 provides for imprisonment of up to two years and/or a fine ranging from Dh5,000 to Dh1 million for violations of a number of provisions, including Article (5) concerning the recall of non-compliant goods.

Penalties increase in more serious cases, with the law providing for fines of up to Dh2 million in certain aggravated circumstances, including cases involving goods harmful to human or animal health and safety, as well as certain food, agricultural and pharmaceutical products, subject to the conditions set out in the law.

Consumer protection: from “detecting a violation” to “recovering the product”

The new regulation reveals a broader shift in the UAE’s approach to combating commercial fraud.

The objective is no longer simply to seize a non-compliant product, but to prevent consumers from continuing to be exposed to it after the violation has been identified.

This explains the emphasis on speed, with suppliers required to begin recalls within 24 hours and announce them within 48 hours.

In a market with multiple sales channels, ranging from traditional shops to e-commerce platforms and social media, removing a product from a single store is not sufficient if the product has already been distributed across dozens or hundreds of outlets or sold online.

The effectiveness of the new system will therefore be measured not only by the number of violations detected, but also by the ability of the regulatory chain to identify the product, trace its distribution, remove it from the market quickly, notify consumers and prevent it from returning to circulation.

The UAE Government’s official platform states that the consumer protection framework covers all goods and services in the country, including free zones, as well as e-commerce where the supplier is registered in the UAE. Consumers are entitled to safe, quality goods and accurate information about them.

For consumers, the new regulation means that discovering a non-compliant product should not end with its seizure from a particular shop. Instead, it should trigger an organised recall process capable of reaching consumers who have already purchased the product.

Consumers, in turn, have a greater responsibility to monitor recall announcements, stop using or consuming any product that has been recalled, and contact the relevant authority or supplier to obtain a replacement or refund, as applicable.

For retailers and suppliers, the message is equally clear: delayed action on non-compliant products has become more costly and carries greater risks.

Businesses must respond rapidly to official notifications, maintain accurate information on their product supply chains, and be able to locate, recall and announce affected products within the prescribed deadlines.

The new regulation places the UAE within a more proactive model for combating commercial fraud, combining field inspections, technical testing, federal and local coordination, as well as recall, notification and destruction mechanisms.

As a result, when an adulterated, spoiled or counterfeit product is detected, the question is no longer simply: How do we seize it?

It is also: How quickly can the market be cleared of it, and how many consumers can be reached before they use it?

This is the significance of the 24-hour deadline. It is not merely a number in an executive regulation, but an attempt to transform the fight against commercial fraud from a reactive process into a rapid response designed to prevent harm from spreading and contain non-compliant products before they reach more consumers.

Article (18) stipulates that adulterated, spoiled or counterfeit goods must be destroyed within no more than 15 working days from the date a destruction ruling is issued by the competent court or a decision is issued by the Supreme Committee, as applicable, unless the competent court or Supreme Committee determines otherwise.