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Under Saudi anti-commercial fraud law, it is illegal to compel customers to purchase goods as a condition for participating in commercial contests. Illustrative image. Image Credit: Shutterstock

Cairo: Saudi authorities have announced summoning six commercial establishments for violating rules of competition in the kingdom by offering prizes that included private jets and luxury cars in an attempt to draw customers and boost sales.

The six businesses operating in the perfumery field will be referred to competent agencies because of breaching the anti-commercial fraud law, the Ministry of Commerce said.

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Their touted prizes also included camels, villas, gold sets and smartphones.

The ministry added that the establishments have violated rules regulating the organisation of competitions during the current Muslim holy month of Ramadan and marketed them via their online stores.

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They made it obligatory for potential entrants to purchase their goods in order to be allowed to participate in the lottery draw on the prizes up for grabs.

One of the suspected violators claimed that its competition is legal and overseen by the Ministry of Commerce in a perceived bid to mislead the would-be entrants.

Last week, the ministry announced legal action against nine group and individual businesses for having illegally held lottery prize draws.

The ministry said the lottery draws that stipulate as a prerequisite for customers to purchase commodities and products to get cash prizes, money put inside the items put up for sale, or participate in draws, are banned in the kingdom.

Under Saudi anti-commercial fraud law, it is illegal to compel customers to purchase goods as a condition for participating in commercial contests. Moreover, the law prohibits competitions that set terms contradicting the Islamic Sharia code and common traditions in the kingdom.

The weeks before Eid Al Fitr holiday, which marks the end of Ramadan, are usually a peak shopping season.