Al-Nowaiser estimates that commercial fraud affects more than 3,000 people and creates economic losses of more than SR41 billion each year.
Al-Nowaiser asserts that such an independent and separately budgeted agency could coordinate all of the current efforts of the many concerned entities in the Kingdom and bring order to the scattered and disorganized system that now exists. Such an agency could wield the necessary authority and power to combat the massive deluge of false commodities and materials that harm Saudi citizens and the Kingdom’s economy.
Al-Nowaiser stressed the importance of enhancing the capabilities of inspectors and controllers by increasing their number, incentives and authority to stem this growing problem.
He said the current system of fighting commercial fraud is wholly ineffective in light of daily evidence of counterfeit products being dumped in the Saudi market from sources outside the Kingdom. He maintains that only an independent agency can protect Saudi citizens and businesses from this global epidemic.
Al-Nowaiser referred to the Fourth Chapter of Fighting Commercial Fraud Law, which stipulates penalties against those who violate its regulations, but he said such penalties are inadequate and essentially useless in fighting this problem.
The current law states that a fine or imprisonment is the penalty against anyone who is in violation of its provisions.
Al-Nowaiser called for penalties that include fines and imprisonment if the fraud is found to be committed intentionally, and that violators should be barred from doing business in Saudi Arabia for several years.
