Saudi Arabia: Nearly 10m substandard products detected in 3 months
SR8 million fine imposed on businesses for commercial coverup
Cairo: Saudi authorities detected 9.9 million products in the third quarter of this year, according to an official report.
The items were uncovered during 341,000 inspection tours nationwide in the same period during which 159,000 reports about commercial fraud were investigated, the Saudi Ministry of Commerce said in its quarterly bulletin. Moreover, 447 commercial fraud cases were referred to public prosecution.
The ministry said total fines of more than SR8 million were imposed on business establishments due to their violations of the kingdom's anti-commercial coverup system.
Saudi authorities have recently launched an electronic service allowing commercial institutions to report about a commercial coverup perpetrated by their counterparts in a step aimed to ensure compliance with the market rules in the kingdom and curb the illegal act.
Previously, reporting about commercial coverup cases was limited to individuals and consumers.
Violation of the anti-commercial coverup law in Saudi Arabia is punishable by a maximum imprisonment of five years and fines up to SR5 million, impounding and confiscating the illegal money after a final court ruling is issued against the offender.
In 2019, the National Programme to Combat Commercial Coverup was instituted, with support from several state institutions in the kingdom including the Saudi Arabian Monetary Authority and the Small and Medium Enterprises General Authority.
In undertaking the mission of exposing commercial coverup, the programme, affiliated with the Saudi Ministry of Commerce, promotes opening bank accounts for businesses, automating services and boosting commercial transparency.