Consumers are frustrated and horrified by the number of fraudulent and counterfeit goods of all types that are present in the Kingdom’s market. Commercial practices as well as trademarks in the Kingdom are subject to anti-fraud regulations laid down and approved a long time ago. Unfortunately, they have remained as they originally were without any modifications. Nonetheless, the regulations might possibly do the job if properly applied and followed.
It is apparent that the anti-fraud department lacks sufficient personnel and equipment to do its job. This does not even address the issue of Jeddah’s expansion and its increase in population over the last thirty or forty years. Despite the city’s expansion and its population increase, the anti-fraud department has remained as it was first set up — a department within the ministry of commerce, Jeddah branch — which is responsible for anti-fraud in everything from soup to nuts, from socks to computers, from bicylcles to jet engines. Sadly, the number of employees has not increased. They are unable to operate on fixed or defined schedules nor do they receive incentives for outstanding accomplishments; no regular training is provided and they do not work under the supervision of well-trained superintendents.
Of course goods and materials that meet Saudi specifications and standards are imported through the proper channels while others come into the Kingdom via illegal channels. It is, thus, virtually impossible for the anti-fraud department to detect these violations. The volume of fraudulent and counterfeit goods in the Saudi market is believed to be around 10 to 15 percent of total imports. The real danger is not in this in percentage but in the range of possible hazards and damages to the public. The products are damaging to the economy and threatening to public health. Society expects the media to participate actively in the detection, investigation and exposing of trade fraud, improper conduct of business and practices contrary to the general interest of the country. In fact, it is time to consider the establishment of a consumer protection union similar to that in the United Arab Emirates which has proved both effective and useful.
The punishments and penalties for those who have so little regard for the public’s health and national economy should be reconsidered since the existing ones are insufficient and ineffective.
Ironically, intensive field inspections only take place after major violations occur and there are incidents or serious fraud cases which spring to the attention of the public and the media attention. Fraud is a dangerous phenomenon with dangerous implications for all. The chambers of commerce are required to participate directly and cooperate in curbing or minimizing the effects of fraud. They must utilize and share the experiences accumulated over the past thirty years in the fields of trade, industry and services.
