Crackdown On Counterfeits!

Traders and makers of fake goods face double or triple fines as the drive to stamp out bootleggers cranks up, a senior official said.

Fines and penalties levied on counterfeiters were raised two years ago – to Dh500 for sale of locally sourced fakes and Dh5,000 for importers of fakes – but the incidence of repeat offenders shows the fines were not enough, said Mohammad Hilal Muroushedi, Director of the Compliance Division at the Dubai Department of Economic Development (DED).

“We are intensifying procedures by doubling and tripling the fine amount, depending on the number of recurrences,” said Moroushedi.

Under the plan, authorities will padlock the shop or store caught trading in fake goods after the second offence, instead of the third.

“We are seeking to amend the list and increase the fines to control such acts,” said Muroushedi.

“We are keen to protect genuine trademarks and are working on capturing a number of dealers and shops that are into the fraud market. The department oversees companies operating outside the free zones.”

He did not clarify the timetable for implementing the new rule.

“We are increasing inspection campaigns in order to capture fake and duplicate products and also reduce the phenomena – whether in Karama or any other area.”

He said the department’s inspectors seized a “fair number” of goods such as fake watches, duplicate bags and counterfeit clothes and perfumes in more than 12 arranged and random inspection campaigns in 2006, he said.

The department is also working with other agencies like the Dubai Police, Customs and the Ministry of Economy to control the counterfeit goods trade.

An estimated $500 million (Dh1.8 billion) in counterfeit goods – including cosmetics, drugs, tea, electrical devices, watches and auto parts – reaches Gulf countries each year, mainly from East Asia, a figure brand owners say will rise without more stringent curbs.

When it comes to fake goods, the buyers should beware, he said. “I call upon consumers to contact the Consumer Protection division and file complaints to help us capture the violators.”

He also asked the public and trademark owners to write to DED about their complaints or lodge complaints personally.

Current Penalties

• Importation, bringing in, buying from unlicensed vendors, or selling of fake/counterfeit goods in the markets of Dubai. Penalties: Dh5,000 (1st violation); Dh15,000 (2nd); Dh20,000 (3rd)
• Marketing of counterfeit goods brought from the local market and sold in the local market. Penalties: Dh500 (1st violation); Dh5,000 (2nd); Dh10,000 (3rd)
• Manufacturing, offering for sale, or selling packaging materials or containers to be used for sale of counterfeit goods or goods that are unfit for human/animal use or for sale of farm or industrial products. Penalties: Dh15,000 (1st violation); Dh30,000 (2nd); Dh50,000 (3rd).

Hotline
Consumer Protection hotline 04-202 0220.