Retailers and online sellers must remove counterfeit goods within 24 hours and could face penalties and seizure of products under UAE anti-fraud rules.
The UAE has introduced stricter rules for dealing with counterfeit, adulterated, and unsafe goods, including a requirement for suppliers to withdraw affected products from the market within 24 hours of receiving an official notification.
The new framework is part of the Executive Regulations for Federal Decree-Law No. 42 of 2023 on Anti-Commercial Fraud. Cabinet Resolution No. 107 of 2026 brought the regulations into force on August 13, strengthening procedures for product recalls, seizures, public warnings and the disposal of goods found to violate commercial-fraud rules.
The regulations apply across the retail sector, including supermarkets, pharmacies and other traders, and extend to e-commerce platforms as the UAE increases scrutiny of goods sold through digital channels.
Suppliers Have 24 Hours to Withdraw Goods
Once a supplier is officially notified that a product must be withdrawn, it must immediately stop selling or displaying the product and complete the withdrawal from the market within 24 hours.
The supplier must also notify relevant points of sale and other entities, recover the affected goods, and provide authorities with evidence that the withdrawal has been completed. The requirement covers products identified as counterfeit, adulterated, spoiled or otherwise falling within the commercial-fraud provisions.
The UAE’s Ministry of Economy and Tourism has described the new regulations as a way to make enforcement and market-control procedures clearer for businesses while strengthening consumer protection.
Public Warnings Must Follow
Removing a product from shelves is not necessarily the end of the process.
Under the regulations, suppliers must generally issue a public announcement about a product withdrawal within 48 hours. The announcement must be made in both Arabic and English.
Where a product presents a risk to health, safety or the environment, authorities can require the public warning to be issued sooner.
That gives regulators an additional mechanism to alert consumers where simply removing a product may not be enough to address the risk.
Authorities Can Seize Products
The rules also give authorities powers to seize products that are subject to enforcement action and place them in custody, with the associated costs charged to the violator.
The regulations establish procedures covering the custody, return, destruction and other forms of disposal of seized goods. These measures are intended to provide a defined process for products that cannot legally remain in circulation.
If a supplier fails to carry out a required withdrawal within the prescribed period, the relevant authority can step in and carry out the withdrawal itself within the following 48 hours. The costs can then be recovered from the supplier.
Some Goods Can Be Returned or Destroyed
The regulations also establish timelines for what happens after fraudulent products have been seized.
Where goods qualify for return to their country of origin or exporting country, they generally have to be returned within 30 days of seizure at the supplier’s expense.
If the supplier does not complete the process, authorities can take the necessary action to return, destroy or otherwise dispose of the goods, with the associated costs charged to the supplier.
Where destruction is ordered, it generally has to take place within 15 working days of the relevant court judgment or Supreme Committee decision, unless another timeframe is specified.
Penalties Cover a Broad Range of Conduct
The Executive Regulations provide for administrative penalties covering various types of commercial-fraud activity.
The rules address situations in which traders knew, or should reasonably have known through their profession, trade or expertise, that goods were adulterated, spoiled, counterfeit or harmful.
The provisions cover a range of products and practices, including pharmaceuticals, agricultural goods and organic foods. They also address the re-circulation of goods that are unfit for use, acquiring products for unlawful commercial gain and misleading or deceptive advertising.
False information concerning a product’s nature, quality, origin or components is also covered.
The Ministry said penalties can be applied progressively depending on the circumstances and seriousness of a violation.
Online Sellers Are Also Covered
The new framework is not restricted to traditional shops and physical retail outlets.
The Ministry has said the regulations take account of modern trading models, including e-commerce, and involve cooperation with online platforms.
Authorities can notify online platforms when fraudulent products are identified, allowing action to be taken to remove the products or display appropriate warnings to consumers.
This is particularly relevant as online marketplaces and digital commerce become a larger part of the UAE’s retail economy.
What Happens If a Retailer Was Misled?
The regulations also distinguish between different circumstances in which a business may come into possession of fraudulent goods.
According to the Ministry, a retailer that legitimately ordered a product but received counterfeit, adulterated, or otherwise mismatched goods can report the issue to the authorities.
The situation can be different where a trader intentionally ordered fraudulent products. In those cases, responsibility may arise depending on the circumstances and conduct involved.
The distinction means businesses are expected to exercise appropriate care while sourcing and selling products.
Healthcare Products Face Additional Coordination
For pharmaceutical and other healthcare-related concerns, the Ministry said it coordinates with the Emirates Council for Medicine.
Consumers can submit complaints through Ministry channels or approach the relevant council, with authorities coordinating where fraudulent or problematic medical products are identified.
The objective is to ensure that potentially harmful products are addressed while information can be communicated to consumers where necessary.
Conciliation and Objections
The regulations also provide a conciliation mechanism in eligible cases.
A conciliation request generally has to be submitted within 10 working days and is subject to conditions, including there having been no previous penalty during the preceding 12 months, the absence of bad faith and the removal of the causes of the violation.
Businesses can also submit an objection within seven working days under the prescribed procedure.
Conciliation does not mean that no violation took place and does not remove potential civil liability.
More Than 10,000 Inspections in Q1 2026
The tougher framework comes as UAE authorities increase enforcement activity.
The Ministry said it conducted 10,023 commercial-fraud inspection tours during the first quarter of 2026, identifying 189 violations.
Officials said enforcement is being supported by legislative and supervisory measures as well as technological tools, including intelligent systems and price monitoring. The Ministry is also working with federal and local authorities, economic departments, retailers and e-commerce platforms.
What UAE Retailers Need to Know
For businesses selling consumer goods in the UAE, the new rules create clear obligations once authorities formally identify a product as fraudulent, counterfeit or unsafe.
The immediate priority is to stop selling the affected product, withdraw it within 24 hours, inform relevant sales points and provide evidence of the recall. A public warning may then be required, generally within 48 hours, while authorities have the power to seize products and recover the costs of enforcement, storage, return or destruction from the supplier.
The broader message from the UAE’s updated anti-commercial fraud framework is that counterfeit and unsafe goods are no longer being treated simply as a retail compliance issue. The rules place greater responsibility on suppliers, retailers and online platforms to act quickly, maintain traceability and protect consumers when violations are identified.
