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Saudi Arabia Warns Against Exploiting Customers Amid Coronavirus Crisis

 |  March 16, 2020

The Saudi Public Prosecution has warned businesses against jacking up the prices of products or services amid increasing demand for health and hygiene products over coronavirus fears.

“Enterprises engaged in commercial, agricultural, industrial or service businesses are prohibited from exploiting temporary repercussions, global events or exceptional situations to carry out contrived practices that create a false and misleading impression that suggests an unrealistic shortage of goods or services in order to control prices,” wrote the public protection in a tweet.

According to Article 6 of the Saudi Competition Law, an entity or entities having a dominant position in the market shall be prohibited from exploiting this position to undermine or limit competition.

Article 19 of the same law stipulates, “Whoever violates any of the provisions of Article 6 of this law shall be punished by a fine not exceeding 10 percent of the total annual sales value subject of the violation. When it is impossible to estimate the annual sales, the fine shall not exceed SR10 million. 

“The Committee may, at its discretion, impose a fine not exceeding three times the gains made by the violator as a result of the violation.”

The law also listed examples of practices that are considered monopolistic practices, such as selling products or services at a price lower than its total cost, manipulating the supply of products to control the prices, and imply unreal abundance or deficit.

Full Content: Arab News

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