Federal Law by Decree No. (42) of 2023 Concerning Anti-Commercial Fraud

Purpose and legislative background

The law strengthens commercial integrity and consumer/market protection by modernising the federal framework for detecting and sanctioning fraudulent goods and misleading commercial practices.

The 2023 decree-law repealed the 2016 Anti-Commercial Fraud Law. The Ministry of Economy and Tourism continues to list the 2023 decree-law in its current consumer-protection/commercial-control legislation library.

Scope and who it applies to

• Suppliers, manufacturers, importers, distributors, traders and other persons dealing in goods within the statute's scope.
• Consumers and rights-holders affected by fraudulent/counterfeit goods.
• Ministry of Economy and Tourism and competent local authorities.
• Inspectors and judicial-enforcement officers authorised under the framework.

Key definitions

• Commercial Fraud and Fraudulent Goods are statutory concepts and should be applied using Article 1.
• Supplier and competent-authority terms determine who has compliance duties and enforcement powers.

Main rights and obligations

• Suppliers must not place fraudulent goods on the market and must cooperate with competent authorities.
• Businesses should maintain documents enabling authorities to verify authenticity and compliance.
• Authorities must follow statutory procedures when taking enforcement measures.
• Persons affected by specified decisions have grievance and court-challenge rights under Article 23.

Procedures and compliance

1. Investigate suspected goods and preserve purchase/import/manufacturing records.
2. Notify/cooperate with the competent authority where the statutory framework requires.
3. Comply with seizure, recall, disposal or corrective measures lawfully imposed.
4. If challenging a covered administrative decision, file the Article 23 grievance before court appeal.
5. Coordinate with IP/product-safety/consumer-protection procedures where the same goods trigger multiple regimes.

Deadlines and time limits

• Issued date: 28 September 2023.
• Article 26: effective two months after Official Gazette publication; exact date left blank pending verified Gazette publication metadata.
• Article 23: 15 working days to submit the specified grievance; 30 days for decision; 30 working days for court appeal following the relevant rejection/expiry event.

Enforcement, violations and penalties

The law provides criminal penalties and administrative/enforcement measures. Exact penalties depend on the offence and facts. Other laws, including IP, consumer-protection and product-safety legislation, may also apply.

Legislation / implementation / commentary distinction: The principal decree-law or federal law creates the statutory rule. Executive regulations, Cabinet resolutions, ministry/regulator decisions and court rules may supply operational detail. The examples and checklists in this explanation are practical commentary and do not create additional legal duties.

Practical scenarios

1. A retailer notified that goods are counterfeit should preserve supplier and import records and immediately assess obligations under both anti-fraud and trademark law.
2. An importer facing seizure of suspected fraudulent goods should use the statutory review/grievance route rather than miss Article 23 periods.
3. A manufacturer changing product composition must ensure labels and representations remain accurate.
4. A rights-holder reporting counterfeit goods should coordinate evidence with the competent economic authority and any IP enforcement route.

Amendments and related legislation

The 2023 decree-law repealed the 2016 Anti-Commercial Fraud Law. The Ministry of Economy and Tourism continues to list the 2023 decree-law in its current consumer-protection/commercial-control legislation library.

What businesses and individuals should check

• Product authenticity, composition, origin, labelling and conformity evidence should be retained throughout the supply chain.
• Anti-commercial-fraud obligations overlap with consumer protection, trademarks/IP, product safety and standards legislation.
• Use the grievance route before court appeal where Article 23 makes it a prerequisite.
• Penalty amounts and aggravating factors should be checked against the exact current articles rather than generalised.
• Confirm the current version/status of the principal legislation on the date relevant to the issue.
• Check all implementing instruments listed in the manifest and any later official updates.
• Preserve the official source citation used for a compliance, transaction or litigation decision.
• Do not rely on the cover artwork as proof of government endorsement or official publication.

When legal advice may be useful

Professional interpretation may be useful where the applicable law changed between the underlying event and the current date, a transitional rule is important, jurisdiction or regulatory perimeter is disputed, an enforcement or penalty provision may apply, or the matter involves significant rights, assets or procedural deadlines.

Information status

Research checked on 2026-08-31. This explanation is general legal information and should be re-verified against the official UAE source before use in a specific transaction, proceeding or compliance decision.