Saudi Crackdown: More Businesses Face Punishment for Hosting Illegal Prize Draws

In a resolute move against violations of the Competition Law, the Ministry of Commerce in Saudi Arabia has set its sights on six commercial establishments specializing in perfumes. These enterprises have been summoned for breaching the regulations governing commercial competitions, marking another chapter in the ongoing battle against illicit practices.

Having meticulously followed legal protocols, the ministry has now initiated punitive measures against these erring businesses, ensuring their referral to the appropriate authorities for contravening the terms outlined in the Anti-Commercial Fraud Law.

This development comes hot on the heels of last week’s revelation, wherein nine establishments were summoned for orchestrating prize draws masquerading as “lotteries.” These dubious schemes required consumers to make purchases to qualify for entry, dangling extravagant prizes ranging from private aircraft to smartphones.

The latest crackdown zeroes in on six perfume sector entities found guilty of flouting competition prerequisites, particularly egregious during the sacred month of Ramadan. Operating through online storefronts and social media channels, these firms shamelessly flaunted their unlawful contests, attracting unwary participants.

Each establishment’s transgressions have been meticulously documented, with legal proceedings swiftly concluded against them. The offenses ranged from deceptive promotions promising camels, cars, and gold sets to misleading claims of official endorsement by the Ministry of Commerce.

One establishment tantalized consumers with prizes including private planes, while another tempted with luxury cars and residential villas. Yet another, a commercial complex in the Makkah region, offered a car as an unlicensed prize, failing to specify crucial details like the competition’s end date or draw date.

As the Ministry of Commerce reaffirms its commitment to upholding fair trade practices, these measures stand as a stern warning to businesses tempted to exploit consumers through deceptive competitions. In the ongoing battle against commercial malpractice, no enterprise is beyond the reach of regulatory scrutiny, ensuring the protection of consumer rights across Saudi Arabia.

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