The Law of Commercial Data in the Kingdom of Saudi Arabia is a legal framework governing the regulation of commercial data within the Kingdom. It outlines the conditions for managing such data, permissible content, and penalties for non-compliance. This law was issued in 2002.
Commercial data
The Saudi Commercial Data Law defines commercial data as any explanation that relates directly or indirectly to the number, quantity, size, capacity, weight, price, production date, expiration date, the entity or country in which it was manufactured or produced, the elements included in its composition, the name of the product or manufacturer, its characteristics, the existence of patents or other industrial property rights or any commercial or industrial privileges, awards or advantages, or the name or form by which some goods are known or usually used.
Language of commercial data
The Law of Commercial Data in the Kingdom stipulates that the commercial data must be at least in Arabic and be truthful in all aspects, be it placed on the products themselves, on the shops or warehouses or their addresses, packaging, invoices, letterheads, or advertising venues, or otherwise as may be used in displaying goods to the public.
Prohibitions of commercial data
The Law of Commercial Data in the Kingdom stipulates that medals, diplomas, rewards, or honorary degrees of any kind may not be indicated except for products to which such distinctive features apply, and for trademarks, and persons who acquired such distinctive features and to those who have succeeded to such rights. Such indication, however, must include correct data relevant to the date, type, and the authority that granted such distinctive features.
A party which participates in the display of products with others may not use for its own products those distinctive features awarded on jointly displayed products unless the source and type of distinctive features are indicated clearly.
The seller’s name or address may not be affixed to products imported from a country other than that where the sale takes place, unless accompanied by a precise statement legibly written, indicating the country or place where the product was manufactured or produced.
Persons residing in an area well known for manufacturing or producing certain products, and who trade in similar products imported from another area, may not use their trademarks on such similar products in a way that could be misleading to the public as to the origin of such products, even if such marks may not bear names or addresses of those persons, unless proper measures are taken to avoid confusion.
A manufacturer who owns a main factory in a certain area may not use the designation of such area on products manufactured for his own account in another area, unless such designation is coupled with the indication of the other area in a way that precludes any confusion.
Products prohibited from import
According to the Saudi Commercial Data Law, when the value of products is influenced by factors such as quantity, size, measurement, capacity, weight, origin, or composition, the Minister of Commerce may decide to prohibit the import, sale, or display of those products unless they are labeled with this information. The Minister of Commerce also determines how the data should be displayed on the products and outlines alternative procedures if labeling is not feasible.
Penalties for violators of the Law of Commercial Data
The Saudi Commercial Data Law imposes a fine of up to SAR100,000 on those who violate its provisions. In cases of repeated offenses, the fine is doubled, and the store may be closed for up to one year. The Ministry of Commerce’s authorized personnel are responsible for monitoring and addressing any violations.
Under the law, the Public Prosecution (formerly the Bureau of Investigation and Public Prosecution) is tasked with investigating violations and pursuing legal action before the appropriate judicial authorities.
The Board of Grievances is responsible for resolving disputes and violations related to the implementation of the provisions of the law. The competent court may order the confiscation of seized items, sell what can be sold, apply the proceeds to compensation and fines, and either destroy the remaining items or dispose of them as it sees fit.
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