UAE's Ministry of Economy introduce penalties of up to Dhs1 million on businesses which illegally raise prices
The UAE's Ministry of Economy is set to slap business owners who illegally raise the prices of key consumer staples with fines of up to Dhs1 million.
The new penalties are part of stringent measures to protect consumers from dishonest traders, after a record number of complaints last year.
News of the tough fines emerged as the head of the ministry's Consumer Protection Department, Hashim Al Nuaimi, met with prominent traders in Umm Al Quwain to brief them on the ministry's plans for this year. He told them the ministry has already slapped penalties of up to Dhs100,000 on retailers or dealers caught hiking prices of certain
consumer products without official approval - but guilty parties could now face a Dhs1 million fine.
Officials have not ruled out even higher fines to curb price abuses, and Al Nuaimi told traders that as well as prosecution, repeat offenders could be shut down. He also told traders that there will be an extended freeze on the prices of more than 1,000 consumer items. The ministry sets a range of prices for key foodstuffs that dealers have been warned not to exceed.
According to Al Nuaimi, the ministry recently imposed a fine of Dhs100,000 on an egg dealer for raising prices after he was caught hiking prices on three separate occasions. Officials said in December they would review consumer protection measures and develop a mechanism to counter such price hikes.
Ministry officials have reported that they received 6,195 complaints from the public about price hikes during 2011 - the most ever. Al Nuaimi said this was partly due to increased awareness among consumers, but they were treating the problem seriously.
© 7Days 2012
