Saudi: Food Trading Company Penalised for Commercial Fraud
The Ministry of Commerce has penalised a food trading company after it was convicted of commercial fraud by offering and marketing products with misleading commercial data to consumers.
The ministry defamed the branch of the food trading firm after a court ruling was issued convicting the firm and its branch manager for committing violations of the Anti-Commercial Fraud Law. The company branch was found guilty of displaying and marketing food products that contain misleading commercial data to the consumer.
During their field tours, the ministry’s inspection teams found that the store was offering and marketing a juice product at prices lower than the real price at the cashier’s counters, which is considered fraud and an act of misleading consumers.
The ministry published the judicial ruling issued by the Dammam Criminal Court, which included imposing a fine, closing the firm for five days, removing the advertisement involved in the violation, and publishing the court verdict in a newspaper at the expense of the violators.
The ministry confirms that it takes stringent penalties against violators of the Anti-Commercial Fraud Law and applies statutory penalties against them. The law stipulates the imposition of penalties of up to 3 years in prison, financial fines of up to SR1 Million or both, and defamation of violators at their expense. It urged all consumers to report commercial violations through the Balagh Tijari application or through call centre No. 1900.
