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

Official-text notice. This is a comprehensive structured English legal-information rendering prepared from the current sources listed in this package. It is not represented as the controlling verbatim English text. The official Arabic text prevails for interpretation and application. Exact article wording, thresholds, exceptions, penalties and deadlines should be checked directly before live reliance.

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

Verified legislative metadata

Purpose and legal effect

Creates the current federal framework against commercial fraud, counterfeit goods, fraudulent or spoiled goods and misleading commercial practices, and provides inspection, seizure, closure, destruction, sanctions and appeal mechanisms.

Who and what the legislation applies to

• Any natural or legal person committing commercial fraud in the UAE, including free zones.
• Importers, exporters, manufacturers, distributors, retailers, warehouses and online sellers dealing in goods.
• Owners or holders of intellectual-property rights affected by counterfeit goods.
• Federal and local authorities responsible for inspection, seizure, closure, disposal and enforcement.

Important statutory definitions

• Commercial Fraud: deception concerning goods, their nature, quantity, type, price, essential characteristics, origin, source, validity or other material commercial data.
• Fraudulent Goods: goods altered, manipulated or presented in a way that deceives the customer as to their true nature or characteristics.
• Counterfeit Goods: goods bearing or using protected intellectual-property indicia without lawful authorisation, as defined by applicable legislation.
• Spoiled Goods: goods no longer fit, safe or compliant for lawful circulation under the statutory criteria.
• Provider: a person who deals in goods in a capacity regulated by the law.

Structured legislative map

Objectives and scope

Combats counterfeiting and commercial fraud, protects intellectual-property rights and applies throughout the State including free zones.

Prohibited goods and conduct

Prohibits specified acts involving counterfeit, fraudulent and spoiled goods, including import, export, manufacture, display, sale, storage, transport and promotion.

Provider duties

Requires cooperation with authorities, disclosure of information and compliance with measures concerning suspect goods.

Inspection and seizure

Authorises competent authorities to inspect, seize and take precautionary measures where evidence of commercial fraud exists.

Closure

Permits urgent closure decisions subject to statutory judicial review safeguards.

Supreme Committee

Establishes the Supreme Committee for Anti-Commercial Fraud and provides for its organisation and competencies.

Administrative sanctions

Allows a Cabinet schedule of violations, fines and authorities competent to impose and collect them.

Criminal penalties

Creates criminal offences and sanctions for specified violations and aggravating circumstances.

Confiscation, destruction and disposal

Regulates confiscation, destruction, recycling or lawful disposal of goods constituting the violation.

Grievance and court appeal

Provides an administrative grievance route before judicial challenge.

Executive Regulation

Cabinet Resolution No. (107) of 2026 now provides current procedural detail.

Key statutory points

• The law applies in free zones as well as the mainland.
• Commercial fraud is broader than simple counterfeiting and can include misleading essential data about genuine goods.
• Importing, exporting, producing, storing, transporting, marketing or selling prohibited fraudulent/counterfeit goods can create liability.
• Authorities may seize suspect goods and impose precautionary measures before final adjudication.
• Urgent closure decisions are subject to court oversight under the statutory timetable.
• Intellectual-property owners can be central to identifying and proving counterfeit goods.
• The law contains both administrative and criminal enforcement routes.
• The current Executive Regulation is Cabinet Resolution No. (107) of 2026.
• The Executive Regulation now details destruction, recycling, inspection and enforcement procedures.
• A grievance generally precedes court challenge against specified administrative decisions.
• The statutory grievance period is measured in working days and should be checked against the exact decision date.
• Consumer Protection, trademark, customs and criminal laws may apply in parallel.
• Product recalls and disposal should be documented to preserve evidence and compliance.
• Online sales are not exempt from commercial-fraud controls.
• The controlling Arabic text and current implementing resolutions should be checked before enforcement or defence action.

Amendments, executive rules and current-law interaction

The decree-law repealed Federal Law No. (19) of 2016. Cabinet Resolution No. (107) of 2026 issued the current Executive Regulation and became effective on 13 August 2026. Earlier implementing rules continue only to the extent not inconsistent with the current framework.

Practical compliance / procedure sequence

1. Identify whether the goods are allegedly fraudulent, counterfeit or spoiled under the statutory definitions.
2. Preserve invoices, supplier records, batch/serial data, customs documents and marketing materials.
3. For suspected counterfeiting, collect trademark/IP ownership and authorisation evidence.
4. Cooperate with inspection and seizure measures while recording the authority, inventory and legal basis.
5. If an administrative sanction or closure decision is issued, calendar the grievance and court-appeal deadlines immediately.
6. For disposal, destruction or recycling, follow the Executive Regulation rather than informal destruction.
7. Check whether Consumer Protection, customs, trademark or other laws create additional duties or penalties.

Dates and time limits

• Issued 28 September 2023.
• The decree-law enters into force two months after its Official Gazette publication.
• Administrative grievance: generally within 15 working days from notification of the challenged decision/procedure.
• The grievance is generally decided within 30 days.
• Judicial challenge to rejection is generally within 30 working days from notification or expiry of the decision period.
• Cabinet Resolution No. (107) of 2026 became effective 13 August 2026.

Enforcement and legal exposure

The framework allows inspection, seizure, closure, administrative fines, confiscation, destruction and criminal prosecution. Because the same facts may also engage trademark, customs, consumer-protection and criminal legislation, an enforcement file should be analysed across all applicable statutes.

Practical scenarios

1. A retailer sells genuine-brand packaging containing substituted inferior goods; this can fall within commercial fraud even if the box itself is authentic.
2. Customs detains a shipment suspected of bearing counterfeit trademarks; the anti-fraud law and intellectual-property rules can operate together.
3. A shop is urgently closed after authorities find strong evidence of fraudulent goods; the closure must follow the statutory court-review mechanism.

Official and current sources

• UAE Legislation — Federal Law by Decree No. (42) of 2023
• Ministry of Economy & Tourism — Consumer Protection and Commercial Control Legislations
• Cabinet Resolution No. (107) of 2026 — Executive Regulation

Research method and source priority

Source review for this package was checked on 2026-09-10. The package is designed for website publication, research and client orientation. For live filings, transactions, litigation, administrative appeals or regulator submissions, consult the current official Arabic legislation and all applicable implementing instruments.