Malls Risk Closure, Fines If Discount Offer Not Met

By Adel Arafah (Khaleej Times)
3 August 2008 
ABU DHABI — Shopping malls, supermarkets and other shops in the capital which announce discount sales and gifts and fail to implement them will be ordered to close down or fined up to AED 20000, said Khalifa Al-Ali, inspection officer in charge at the Consumer Protection Section, Department of Economy and Planning in Abu Dhabi.
In case the outlet repeats the violation, a fine not exceeding AED 30000 would be slapped on the owner and the store might not be given discount permits for three years, he warned. Anyone who feels cheated should immediately call the number 02-4031135 and lodge a complaint, he said. The sales promotions are regulated according to certain rules, and a trade store and its branches in one city should not sell items at discounted prices except twice a year, he said.
According to him, the discount offers should not continue for more than 30 days except for the trade stores or shops which announce clearance sale with the intention to stop the business and turn to another business or shut down for good. In these cases, the discount offers could continue for a period up to a year.
Seasonal discount offers shall not commence unless a month at least has elapsed after the end of the previous seasonal offers, Al Ali noted.
Any announcement of sale at reduced prices would be considered discounts, and the same is not allowed to be made through any means of media unless a permission specifying the date of commencement and end is obtained from the Department of Economy and Planning, he said. Prices of sale before and during the said period should be submitted to the department, and no permit will be issued to the applicant unless he has a valid trade license and has registered with the chamber of commerce and industry concerned.
The trader should adhere to the rules and regulations streamlining the sales set by the authorities concerned in the particular emirate. 
The employees of the authorities concerned in the emirate are authorized to enter the trade store which permits clearance or sale and can ask the owners of the premises to show them the permit letter. These employees are also empowered to report any violations by the store owners.
The department, he said, has 69 inspectors who pay surprise visits to all trade stores to ensure that the sales are credible.
The department, he said, took all necessary measures to ensure that the rates of discounts reaching, sometimes, up to more than 75 per cent are really offered to the customers.