UAE: New Law on Combating Commercial Fraud Bolsters UAE’s Legislation and Protects Consumers in Line with Best Global Standards

ABU DHABI - The Ministry of Economy (MoEc) has clarified that Federal Decree-Law No. (42) of 2023 on Combating Commercial Fraud contributes to the creation of an integrated legislation that will significantly enhance consumer rights protection and combat commercial fraud in the UAE, aligning with the best global standards. This law introduces comprehensive mechanisms and regulations to prevent the trade of counterfeit, adulterated, and corrupt products and to combat counterfeiting activities, ensuring fair competition and bolstering the UAE’s global competitiveness. A press release by the Ministry.

H.E. Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, highlighted that this law marks a significant milestone in the UAE's transition towards an economic model based on fair competition and innovation. “The primary objective of this law is to enhance the regulatory and legislative landscape for the economic sector, reinforcing the business environment and governance in line with the ministry’s strategic objectives,” H.E. said.

H.E. said: “The introduction of this new law aims to enhance the competitiveness of the business environment for both companies and trademark owners in the country, replacing the previous law on combating commercial fraud. Additionally, it seeks to foster innovation in businesses and provide support for the protection of intellectual property. The law aligns with federal laws on ‘Consumer Protection’, ‘Trademarks’, ‘Copyright and Neighbouring Rights’, and ‘Commercial Agencies’. Its provisions have been developed with a forward-thinking and adaptable approach that takes future developments into account.”

“In the past stage, the Ministry of Economy  has collaborated with partners of federal and local government entities, as well as the private sector, to enhance law concerning commercial fraud. This effort has been instrumental in creating a competitive environment for the establishment of businesses, increasing flexibility in economic and trade activities, and strengthening the UAE's status as a leading global hub for commerce, business, and innovation.” H.E added.

The Ministry has emphasized the law’s crucial role in fostering a competitive trade and business environment. It will drive the growth and improvement of the domestic trade system and enhance the retail sector. The law will promote sound commercial practices and effectively combat the sale of counterfeit, adulterated, and corrupt products. This, in turn, will attract major brands and positively impact their economic performance. Additionally, it will encourage research, development, and innovation, benefiting consumers and the UAE’s overall economy.