Selling of Counterfeit Goods Under the Label of the Original Product Legal Remedies Under UAE Law

In the UAE, the Federal Law No. 15 of 2020 (“Consumer Protection Law”) lays down provision related to consumer protection. It ensures quality of goods and services, regulating the prices of these good and services, and preserving the health and safety of consumers. Additionally, Federal Decree-Law No. 42 of 2023 on Combating Commercial Fraud (“Commercial Fraud Law”) lays down provisions related to combating counterfeit of original goods and all types and forms of Commercial Fraud. Victims of counterfeit goods often turn to the best lawyers in Dubai to pursue legal remedies and compensation.

Right to Obtain Accurate Information

Article 4 of the Consumer Protection Law lays down the rights of a consumer in the UAE. As per Article 4(2) of the Consumer Protection Law, the consumer has the right to obtain the correct information about the goods that he/she purchases, uses, or consumes, or the Service that they receive. Furthermore, under Articles 7 and 8 of the same law, the supplier or the service provider is obligated to provide certain information, such as explanatory details and other information pertaining to a product or service. Thus, as per Article 8 of the law, while purchasing any item, a consumer has the right to obtain a detailed invoice that provides information such as the trade name of the business, address, commodity type, quantity, price, and any other data prescribed by law. Many of the best law firms in UAE specialize in handling commercial fraud and consumer protection disputes.

Further, Article 3 of Cabinet Resolution No. (66) of 2023 Concerning the Executive Regulations of Federal Law No. (15) of 2020 Concerning Consumer Protection lists out in detail the information required to be provided with a product, as specified by law, including the following:

1. Name, type, nature, ingredients and quantity of commodity, whether in connection with the weight, measurement, number, calibration, capacity, benchmark or any other standards affect the value of commodity.

2. Country of origin (name of country preceded by the phrase: Made in).

3. Country of export (if any).

4. Name of producer or importer, accompanied by the commercial address or trademark.

5. Date of production and shelf life.

6. Conditions of handling and storage and way of use.

7. Indicating the risks that may result from the misuse of commodity, in clear legible writing.

8. Defining the categories and ages of consumers liable to risks upon using the product, in particular the children, the disabled and the elderly.

Selling counterfeit products in the UAE

Under Article 4(1) of Federal Decree-Law No. 42 of 2023 on Combating Commercial Fraud, it is illegal to import, export, produce, manufacture, display, sell, store, transport, market, trade, promote, dispose of, or possess counterfeit goods for selling, and it is also prohibited to attempt any of these acts. Thus, as per UAE law, it is illegal to sell counterfeit products in the UAE.

What are the Remedies available if you have been sold a counterfeit product?
As per Article 7 of the Commercial Fraud Law, if you receive fraudulent or fake goods, the supplier of the good is obligated to exchange or change the goods according to the desire of the bona fide customer, without prejudice to the customer’s right to claim compensation. Thus, the customer can receive a refund as well as damages if he is sold counterfeit goods, provided that he was not aware of the nature of goods, at the time of purchase.

Can suppliers face penalties for selling counterfeit goods?

Article 17 of the Commercial Fraud Law lists out penalties in case of fraudulent selling of counterfeit goods. It states that a penalty of imprisonment of up to two years and/or a fine between AED 5000 and AED 1,000,000 may be imposed on anyone who is found to have violated Article 4 of the Commercial Fraud Law, which pertains to the selling of counterfeit goods. Understanding how criminal law in UAE applies to selling counterfeit products is essential for both businesses and consumers.

Conclusion

The UAE Law under both the consumer protection law and the commercial fraud law lays down clear provisions against the selling of counterfeit products. The laws ensure that customers are properly aware of all the information pertaining to the products to prevent fraudulent transactions. In case of non-adherence to the provisions, the UAE laws lay down strict penalties. Thus, if a customer is sold a fake product and they can reasonably establish bonafide intent and proof of purchase, they are liable to obtain a refund for such purchases.