Commercial fraud in Dubai law means deceiving customers about goods:
- changing their nature, quantity, type, price, origin or validity;
- or giving false or misleading commercial information about them.
It is a crime under Federal Decree-Law No. 42 of 2023, which carries up to two years in prison and fines of up to AED 2 million.
Many older guides still describe Federal Law No. 19 of 2016. The 2023 decree-law repealed it (Article 24), so the penalties and procedures below come from the current text.
Quick Answer
Commercial fraud in Dubai includes deceiving customers about goods, selling counterfeit products, misrepresenting their origin or quality, and providing false commercial information. Federal Decree-Law No. 42 of 2023 governs these offences, with penalties depending on the conduct and goods involved.
A bona fide buyer of fraudulent, spoilt or counterfeit goods may request a refund or exchange and retain the right to claim compensation. Traders facing inspection or enforcement should review the seizure, grievance and appeal deadlines immediately.
What Is Commercial Fraud In Dubai Law?
Article 1 defines commercial fraud as deceiving customers by any means. The law then lists the conduct it prohibits (Article 4). Attempting any of it is also an offence.
| Conduct | Example |
|---|---|
| Importing, exporting, making, selling, storing, transporting or possessing counterfeit goods for sale | A shop stocks watches that carry a registered trademark without permission. |
| Deception or counterfeiting about the type, quantity, weight, origin, composition or expiry date of goods | A supplier relabels expired food with a new date. |
| Possessing fraudulent, spoilt or counterfeit goods to market or sell them, or to alter them | A warehouse holds spoilt stock for resale. |
| Using containers, wrappers, labels or publications to prepare such goods for sale | Packaging copied to pass off a copy as the original. |
| Describing, advertising or displaying goods with false or misleading information | A listing claims a product has a feature it does not have. |
The law uses three terms. Fraudulent goods have been changed in a way that costs them value, or are promoted in a way that contradicts reality. Spoilt goods are no longer wholly or partly fit for use or consumption.
Counterfeit goods carry, without permission, a mark identical or similar to a registered trademark. The law applies to anyone who commits the act in the UAE, whatever zone the business sits in (Article 3). A provider is any person who:
- imports;
- makes;
- sells;
- stores;
- transports;
- or displays goods, for itself or for others (Article 1).
Facing A Commercial Fraud Allegation In Dubai?
Contact Leaders Advocates for guidance on counterfeit goods, misleading commercial information, suspected fraudulent products, and allegations under Federal Decree-Law No. 42 of 2023.
What Commercial Fraud Does Not Cover
The offence is about goods and customers. It does not cover every business deception, so the right law depends on what happened to you.
| What Happened | Where To Look |
|---|---|
| You were sold fake, adulterated or misdescribed goods | Federal Decree-Law No. 42 of 2023. The provider must refund or exchange them (Article 7). |
| A competitor spread false claims about your goods | The unfair competition rules in the Commercial Transactions Law. A merchant who misleads customers or publishes false particulars that harm a competitor is liable for compensation (Articles 62 and 63). |
| Deception led you to sign a contract | The Civil Transactions Law. Deception that causes gross unfairness lets the deceived party ask to annul the contract. Deliberate silence about a key fact can count as deception (Articles 170 to 172). |
| Someone deceived you and you lost money | A civil claim for compensation. A person who deceives another is liable for the resulting harm (Articles 246, 247 and 255). |
| A website or social media account was used to cheat you | Online fraud can also fall under the Cybercrimes Law, and the Ministry of Economy and Tourism lists fake stores and misleading online advertisements among its main concerns. |
The Civil Transactions Law applies from 1 June 2026, and earlier facts may fall under the older code. Its time limits matter: the right to annul a contract for deception is lost if not asserted within one year of discovering the deception, and in any case after 15 years (Article 191). Read it on the UAE legislation portal.
Penalties For Commercial Fraud
The penalties depend on the conduct and the goods involved.
| Situation | Penalty | Article |
|---|---|---|
| Breaching the prohibited acts, the recall duty, the provider’s obligations or the ban on obstructing inspectors | Prison of up to 2 years and/or a fine of AED 5,000 to AED 1,000,000. | 17 |
| Fraud with false weights, measures or seals; goods harmful to humans or animals; medicines, crops or organic food | Prison and/or a fine of AED 100,000 to AED 2,000,000. | 18 |
| Any conviction | The court must order confiscation or destruction of the goods and tools used, and publication of the judgment at the convict’s cost. It may close the premises for up to 6 months. | 19 |
| A repeat offence within 5 years of the earlier final conviction | The penalty doubles, and the premises close for up to a year. | 21 |
| A manager who knew and took no steps, or whose serious breach of duty contributed | The same penalty as the company. The manager is also jointly liable for the company’s fines. | 20 |
A buyer’s knowledge is no defense. A provider cannot escape the penalty by proving that the customer knew the goods were fraudulent, spoilt or counterfeit (Article 6).
If you are facing an inspection, a seizure or a charge, speak to our lawyers on WhatsApp or use the Contact Us page.
Under Investigation Or Facing Commercial Fraud Penalties?
Speak with Leaders Advocates about commercial fraud allegations, counterfeit goods investigations, business premises closure, manager liability, and responding to criminal or administrative enforcement action.
What Inspectors Can Do, And The Deadlines That Protect A Trader
Judicial enforcement officers can enter shops, stores and factories at any time, review books and records, seize suspect goods and take samples (Article 10). The law then sets short deadlines.
| Deadline | What It Covers | Article |
|---|---|---|
| 24 hours | The court may decide a provider’s request to release seized goods within 24 hours, if there is evidence the goods spoil quickly, samples were taken, and public health is unlikely to be at risk. | 12 |
| 45 days | Seized goods must be released if the court has not confirmed the seizure within 45 days. For goods that spoil quickly the period is 20 days. | 12 |
| 10 working days | An administrative closure of a shop must go to the court within 10 working days, or the closure decision is treated as non-existent. | 13 |
| 15 working days | Written grievance against a decision, counted from notice. It is decided within 30 days, and silence counts as rejection. | 23 |
| 30 working days | Appeal to the court against a rejected grievance. The court route is open only after the grievance step. | 23 |
The authority can also order recall of the goods from markets and stores, and the provider pays for the recall, destruction or return (Article 5). The Ministry or the authority may settle a violation by reconciliation, for a payment of at least twice the minimum administrative fine (Article 22).
If You Bought Fake Or Misdescribed Goods
The provider must refund the price, or exchange the goods, if you were a bona fide customer and you choose that. This does not limit your right to claim compensation (Article 7).
You can report the sale to the Ministry of Economy and Tourism through the online complaint form on its anti-commercial fraud page, by phone on 8001222, or by email at Info@moet.gov.ae.
Keep:
- the receipt;
- the listing or advertisement;
- photos of the goods and packaging;
- and any messages with the seller.
Bought Counterfeit Or Misdescribed Goods In Dubai?
Contact Leaders Advocates for guidance on requesting refunds or exchanges, preserving purchase evidence, filing commercial fraud complaints, and assessing possible compensation claims.
Questions That Come Up
Relevant Legal Services
To discuss a commercial fraud matter, speak to our lawyers on WhatsApp or use the Contact Us page. See our criminal defense lawyers, commercial litigation lawyers and civil lawyers.
Related Legal Guidance
Further Legal Publications And Professional Profiles
Explore professional legal publications and firm information through Leaders Advocates on Mondaq, the firm’s Lexology contributor profile, and its Legal 500 lawyer profiles.
Final Takeaway
Commercial fraud in Dubai law primarily concerns deception involving goods, including counterfeit products and misleading commercial descriptions. Federal Decree-Law No. 42 of 2023 sets out the prohibited conduct, penalties, enforcement powers, and consumer remedies. Whether you are a buyer seeking redress or a trader facing allegations, preserving records and acting within the applicable deadlines is essential.
Need Legal Help With Commercial Fraud In Dubai?
Speak with Leaders Advocates about commercial fraud investigations, counterfeit goods, fraudulent product descriptions, buyer compensation, company manager liability, and criminal or civil proceedings under UAE law.
