Executive Regulations Clarify Enforcement of the Commercial Fraud Law

The UAE has issued the Executive Regulations implementing Federal Decree-Law No. (42) of 2023 on Combating Commercial Fraud, providing the procedural framework for how commercial fraud cases will be investigated, managed, and enforced in practice.

Issued under Cabinet Resolution No. (107) of 2026, the Regulations set out detailed procedures governing inspections, product sampling, laboratory testing, market withdrawals, public notifications, disposal of goods, reconciliation procedures, and corrective measures. Together, these provisions translate the broad principles of the 2023 Law into a structured enforcement process.

While the Regulations do not create new offences or introduce additional penalties, they provide greater certainty regarding the administrative procedures that competent authorities will follow once suspected commercial fraud is identified. This added clarity is likely to benefit both enforcement authorities and businesses operating across the UAE.

A More Structured Enforcement Process

The Regulations establish a coordinated framework between the Ministry of Economy and the competent local authorities, outlining their respective roles throughout the enforcement process. They address matters ranging from receiving reports of suspected violations and conducting inspections to documenting evidence and coordinating technical examinations where necessary.

Inspectors are granted detailed procedural guidance on collecting samples, preparing inspection records, and referring products for laboratory analysis where their authenticity, composition, or compliance requires technical assessment. This structured approach is intended to ensure that enforcement actions are supported by documented evidence and consistent administrative procedures.

Clear Procedures for Suspected Products

A significant feature of the Regulations is the establishment of a defined process for handling goods suspected of falling within the scope of the Commercial Fraud Law.

Depending on the circumstances of the case, the competent authorities may seize products, arrange laboratory testing, order their withdrawal from the market, require public announcements, or oversee their destruction, recycling, or other forms of disposal where appropriate under the law. The Regulations also specify the reporting requirements and procedural safeguards applicable throughout these stages.

By setting out these procedures in greater detail, the Regulations provide businesses with a clearer understanding of how suspected commercial fraud cases are expected to progress from initial inspection through to final resolution.

Greater Clarity for Businesses

The Regulations also clarify a number of procedural obligations that may arise for businesses where products are suspected of violating the Commercial Fraud Law.

These include requirements relating to cooperation with the competent authorities, implementation of product withdrawal measures where applicable, publication of consumer notices in prescribed circumstances, and compliance with decisions concerning the handling of affected goods. The Regulations further establish procedures governing reconciliation and corrective measures where these are available under the Law.

For manufacturers, importers, distributors, and retailers, the practical effect is greater visibility into the administrative process that accompanies enforcement actions, allowing businesses to prepare internal compliance procedures with greater confidence.

Practical Considerations

Although many businesses already maintain product compliance and recall procedures, the Executive Regulations reinforce the importance of ensuring that these processes are well documented and capable of responding promptly to regulatory action.

Businesses operating in the UAE may therefore wish to review:

• product traceability and record-keeping procedures;
• internal product withdrawal and recall protocols;
• quality assurance and testing procedures;
• supplier due diligence measures; and
• internal processes for responding to inspections and regulatory inquiries.

Early preparation may help minimize operational disruption should an inspection or enforcement action occur.

Looking Ahead

The Executive Regulations complete an important part of the UAE’s commercial fraud framework by providing the procedural detail necessary to implement the Commercial Fraud Law in practice.

Rather than altering the substantive obligations established by the 2023 Law, the Regulations define how those obligations will be administered and enforced. For businesses, this offers greater predictability regarding regulatory expectations and enforcement procedures. For brand owners, it represents another step in strengthening the UAE’s consumer protection and anti-commercial fraud regime through a more transparent and structured enforcement process.