Penalties for Organizing Unlicensed Competitions

The Saudi Ministry of Commerce has taken strict punitive measures against 44 commercial establishments for organizing competitions and discount offers without obtaining the necessary licenses. These firms were referred to the Public Prosecution to complete the legal procedures, in accordance with the provisions of the Anti-Commercial Fraud Law.

Requirements for Competitions and Discounts

The ministry has instructed that any commercial establishments or online stores wishing to organize competitions or discount offers must first obtain a license from the ministry. Failing to do so is considered a violation of the law.

Monitoring and Enforcement

The ministry continuously monitors whether commercial establishments and online stores comply with the requirements for organizing competitions and discounts. This helps detect any violations and catch misleading commercial practices targeting consumers.

Penalties for Violations

Under the Anti-Commercial Fraud Law, violators face penalties including:

• Up to three years in prison
• A maximum fine of SR1 million
• Defamation of the violators at their own expense in local media after judicial rulings