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Nation Home > Court Round-Up
Two companies fined for ‘hiking’ prices during sale

8 July 2012

The Ministry of Economy has fined two trading firms, one operating in Dubai and the other in Ras Al Khaimah, after they were found manipulating customers by increasing prices through bogus offers.

The two companies allegedly increased the prices of the products before a sale was announced.The ministry has warned sales outlets and trading firms against exploiting customers through offers.

Dr Hashim Saeed Al Nueimi, Director of the Consumer Protection Department at the Ministry of Economy, said: “The department received complaints from consumers regarding manipulation in prices by a trading company of a famous brand name operating in garments, women’s handbags and accessories in Dubai.” After verifying the authenticity of the complaints, the company was slapped with a fine of Dh50,000, he added. Another company dealing with furniture in RAK was fined Dh100,000.

In the case of the first company, the ministry received the complaint over the ‘Consumer’s Line’ initiative. The customer claimed that he/she had bought a handbag for Dh130 from the sales outlet of a company belonging to a famous brand. Two weeks later, the company put the same bag for display as part of summer sales for Dh189. The complainant claimed that the price of the handbag before the sale was quoted as Dh269.

The ministry ordered the company to rectify their prices and re-offer the products at the price sold before the sale. The furniture company was fined Dh100,000 because it had rigged the furniture prices and offered the items for a price higher than its original prices. 

Fines for illegally distributing brochures

Ahmed Shaaban

The Department of Economic Development in Umm Al Quwain has issued fines on five institutions for illegally distributing brochures and promotions at the houses, masjids and vehicles.

The department has recently received a number of complaints from residents about some Asians who illegally distribute advertisements, promotions and brochures at the doors of their houses.

According to a senior official, some of the said promoters even tried to trespass into the houses of some residents to throw an advertisement. “The department has set a number of conditions whereby permission is needed in advance for distribution of such brochures,” said Essa Musabah, Director of the department in Umm Al Quwain.

Musabah said such advertisements should not be distributed directly. “They may only be distributed with daily newspapers to keep the emirate clean and beautiful. The set regulations are meant to streamline the distribution of advertisements and monitor the distributors and check their compliance with the rules,” he added.

A fine of Dh3,000 is imposed on the errant advertising company if it fails to present the required permission. He said that intensive raids are launched across the emirate to curb such arising phenomenon. The department has urged the public to report any such violations at mobile number 050-1583999.



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