SAUDI ARABIA

Punitive measures against more firms for organizing illegal lottery prize draws

March 28, 2024
The Ministry of Commerce said that six establishments operating in the perfumes sector committed violations related to prerequisites for organizing competitions during the holy month of Ramadan.
The Ministry of Commerce said that six establishments operating in the perfumes sector committed violations related to prerequisites for organizing competitions during the holy month of Ramadan.

Saudi Gazette Report

RIYADH — The Ministry of Commerce announced the summoning of six commercial establishments operating in the field of perfumes for their violation of the provisions of the Competition Law. The ministry has completed legal procedures against them prior to referring them to the concerned authorities for violating the terms and conditions of the commercial competitions stipulated in the Anti-Commercial Fraud Law.

Last week, the ministry announced the summoning of nine establishments for organizing “lottery” prizes. It was found that these firms have organized lottery retail prize draws for commercial goods with a condition that consumers must purchase goods as a prerequisite to participate in the contest. The announced lottery prizes included private aircraft, camels, luxury cars, residential villas, gold sets, and smartphones.

The ministry said that six establishments operating in the perfumes sector committed violations related to prerequisites for organizing competitions during the holy month of Ramadan. These firms announced the lottery draws through their electronic stores and social media platforms. The ministry cited violations committed by each establishment, saying that adoption of legal procedures against these firms has been completed. All these firms were found organizing lottery prize draws for commercial goods with a condition that consumers must purchase goods as a prerequisite to participate in the contest.

The first establishment announced a competition with lottery prize draws such as a number of camels, cars, and gold sets while the second firm announced a competition for prizes such as private planes and the third firm announced competition for prizes such as cars and smartphones.

The ministry said that the fourth establishment announced a competition whose prizes were cars. The firm misled consumers by claiming that the competition was legal and that it is being held under the supervision of the Ministry of Commerce.

The fifth firm is a commercial complex in the Makkah region. It announced an unlicensed commercial competition and offered the car as a prize without specifying the date of the end of the competition, or the date of the draw. The ministry noted that the sixth establishment announced a competition for prizes such as a residential villa and luxury cars


March 28, 2024
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