New UAE anti-commercial fraud rules take effect

Abu Dhabi: Cabinet Resolution No. (107) of 2026, concerning the Executive Regulations of Federal Decree-Law No. (42) of 2023 on combating commercial fraud, officially came into effect today, introducing stricter obligations on suppliers and stronger enforcement measures against counterfeit, adulterated and spoiled products. Under the new regulations, suppliers must immediately stop selling or displaying any non-compliant products and withdraw adulterated, spoiled or counterfeit goods from markets and warehouses within 24 hours of receiving official notification. 24-hour withdrawal requirement Article 5 of the regulations sets out the procedures for withdrawing non-compliant goods. If counterfeit, adulterated or spoiled products are identified, the Ministry of Economy and Tourism or the competent authority may issue a withdrawal decision. The supplier must then: Immediately cease selling and displaying the products. Withdraw the goods from markets and warehouses within 24 hours. Notify all sales outlets and entities supplied with the products to withdraw them within the same period. Take the necessary measures to recover the products from circulation. Provide proof to the Ministry or competent authority that the withdrawal and recovery procedures have been completed. Authorities empowered to seize products The regulations require authorities to seize counterfeit, adulterated or spoiled goods and store them in designated locations at the violator's expense. The products may not be disposed of in any manner, while authorities must also inform the public and warn consumers against purchasing or using them, identifying the products by type, description and trademark where applicable. Action if supplier fails to comply Article 8 stipulates that if a supplier fails to withdraw the affected products within the prescribed 24-hour period, the Ministry or competent authority must take the necessary measures to withdraw the goods from markets and warehouses within the following 48 hours, with all costs borne by the supplier. Administrative fines Article 20 provides for administrative penalties against anyone proven to have knowingly dealt in counterfeit, adulterated or spoiled goods. Fines may be imposed if a person knew, or should have known through their profession, trade or experience, that the products or materials involved could harm human or animal health and safety. The regulations identify four key situations: Where the products involve medicines, agricultural products or organic food products. Where adulterated or spoiled goods are reintroduced into circulation after being deemed unfit for use. Where counterfeit, adulterated or spoiled goods are purchased for resale, modification, recycling or illicit profit. Where such products are promoted, marketed or advertised using false or misleading information regarding their nature, quality, origin or composition. Expanded inspection powers The regulations grant judicial officers extensive powers to deal with suspected goods, including: Inspecting shops, warehouses, factories and facilities. Examining products and collecting evidence. Seizing suspected goods at the supplier's expense while examinations and analyses are conducted. Taking all necessary legal measures relating to suspected products. Destruction within 15 days Article 18 stipulates that counterfeit, adulterated or imitation products must be destroyed within 15 working days of a destruction ruling issued by a competent court or a decision of the Supreme Committee, unless otherwise specified by the relevant authority. The new regulations form part of the UAE's broader efforts to strengthen consumer protection, enhance market oversight and combat commercial fraud across all sectors.