Saudi Ministry of Commerce: Fines of Up to 100,000 Riyals for Pricing Violations

The Saudi Ministry of Commerce has specified a new schedule of penalties for municipal violations related to its jurisdiction, imposing fines of up to 100,000 riyals on establishments that sell staple goods at prices exceeding those set by a decision from the Minister or the competent authority.

The schedule explained that the fine for exceeding set prices is calculated based on the difference between the designated price and the selling price, provided it is not less than 5,000 riyals and does not exceed 100,000 riyals per item, with the establishment being granted a 14-day corrective grace period after receiving a notification.

The fine for using the phrase "Goods sold are non-refundable and non-exchangeable" reaches up to 1,000 riyals, while fines for violations such as refusing to sell, failing to issue invoices, or failing to display prices on offered goods ranged between 200 and 1,000 riyals, depending on the classification of the regional and local municipalities.

The schedule imposed fines between 1,000 and 5,000 riyals on establishments that do not open their own bank account, with a 30-day corrective grace period and a doubling of the fine upon repetition. Penalties also included wasting flour, dough, or bread in excess of 5%, electronic payment violations, and misleading information. The schedule was issued under Ministerial Decision No. 85 to replace the schedule attached to Decision No. 13.

What do these terms mean?

Staple Goods: Essential subsidized or price-controlled commodities, such as flour and basic food items, which the state ensures are available at appropriate prices.

Pricing: Establishing an official or mandatory price for a commodity or service, where the seller is considered in violation if they exceed it.

Corrective Grace Period: A timeframe granted by the regulatory authority to an establishment to rectify a violation before a fine is enforced, aimed at encouraging voluntary compliance.