Rise in Scams Through Fake Websites and Counterfeiting Impacting Dubai’s Market

Dubai's popular chocolate brand, FIX Dessert Chocolatier, has recently been targeted by a scam involving fake websites and unauthorised social media accounts selling their viral kunafa-stuffed chocolate bars.

In response, FIX Dessert Chocolatier issued a statement warning customers about these scams, clarifying that their products are sold exclusively through Deliveroo and that they have no official website, physical store, or authorised resellers.

This serves as a stark reminder to Dubai residents and visitors of the legal consequences of fraud and counterfeit operations in the UAE.

Below is an overview of the legal framework surrounding such activities and the penalties associated with them.

Legalities of Online Fraud and Counterfeit Sales in the UAE

In the UAE, online fraud, including the sale of counterfeit goods through fake websites and social media, is considered a serious criminal offence under the country's strict cybercrime laws.

The UAE government has enacted various regulations to safeguard consumers and businesses from such illegal activities.

Relevant Laws

UAE Cybercrime Law (Federal Decree-Law No. 5 of 2012): This law specifically addresses cybercrimes, including online fraud, identity theft, and the creation of fake websites.

It criminalises the use of technology to deceive others and steal their money or data. Setting up fake e-commerce sites or selling counterfeit products falls under this law.

Consumer Protection Law (Federal Law No. 15 of 2020): This law outlines the rights of consumers in the UAE and ensures that businesses are held accountable for any fraudulent practices. It prohibits the sale of counterfeit goods and imposes penalties on those who deceive customers.

Commercial Fraud Law (Federal Law No. 19 of 2016): This law regulates commercial fraud and aims to protect consumers and businesses from fake products and counterfeit activities. It includes provisions for harsh penalties for those engaging in fraudulent sales and misleading advertisements.

Penalties for Fraudulent Activities

Fines: Individuals or businesses found guilty of online fraud or the sale of counterfeit goods may face hefty fines, ranging from Dh250,000 to Dh1 million, depending on the severity of the offence.

Imprisonment: In addition to fines, violators can be sentenced to imprisonment for a period ranging from one year to several years, depending on the level of fraud and harm caused to consumers.

Business Shutdown and Licence Revocation: Companies involved in fraudulent activities can face business shutdowns, revocation of trade licences and public blacklisting.

Consumer Protection and Reporting

Consumers are encouraged to remain vigilant and only purchase products from verified platforms. In the event of encountering a scam, residents are urged to report the incident to the UAE Consumer Protection Department or the Dubai Police Cyber Crime Division.

With the UAE's strict legal framework, scammers can face significant legal repercussions for their actions. By adhering to official purchasing channels and reporting fraudulent activities, consumers can help maintain the integrity of Dubai's thriving marketplace.

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