The UAE today officially begins implementing Cabinet Resolution No. (107) of 2026 concerning the Executive Regulation of Federal Decree-Law No. (42) of 2023 on Combating Commercial Fraud.Under the new decision, suppliers are required to immediately stop selling or displaying any non-compliant product and take decisive action to recall counterfeit, adulterated or spoiled goods from markets and warehouses within no more than 24 hours from the date they receive an official notification.Get updated faster and for FREE: Download the Gulf News app now - simply click here.Article (5) of the decision, which sets out mechanisms for recalling non-compliant goods, stipulates that when the presence of adulterated, spoiled or counterfeit goods is established and a recall decision is issued, the Ministry of Economy and Tourism or the competent authority, as applicable, may initiate procedures by notifying the supplier through approved notification channels to immediately stop selling and displaying the goods.The supplier must then, within no more than 24 hours of receiving the notification, take the necessary measures to withdraw the goods from markets and warehouses. It must also notify all sales outlets and entities supplied with the goods that they must recall them within no more than 24 hours of receiving the notification, and take the necessary steps to recover the goods and remove them from circulation.Suppliers must also provide the Ministry of Economy and Tourism or the competent authority with evidence that the notification, recall and recovery procedures have been implemented.Ministry of Economy and Tourism’s responsibilityThe decision also requires the Ministry of Economy and Tourism or the competent authority to seize adulterated, spoiled or counterfeit goods and keep them in designated locations at the expense of the violator, who is prohibited from disposing of them in any manner.The authorities must also inform the public and warn consumers against purchasing or using such goods, while providing details of their type, specifications and the trademarks they carry.Article (8) of the regulation sets out the procedures to be followed if a supplier fails to recall adulterated, spoiled or counterfeit goods. If the supplier does not recall the goods within the 24-hour deadline, the Ministry or competent authority must, as applicable, take the necessary measures within the following 48 hours to remove the goods from markets and warehouses, at the supplier’s expense.Meanwhile, Article (20) establishes controls for imposing an administrative fine on a person who knowingly deals in commercial fraud. Without prejudice to any more severe penalty prescribed by the decree-law, the Ministry or competent authority may impose an administrative fine where it is established that the person knew, or should have known by virtue of their profession, trade or experience, that the adulterated, spoiled or counterfeit goods, or materials used to adulterate them, were harmful to human or animal health and safety.The provision identifies four main cases:First: Where the adulterated, spoiled or counterfeit goods, or materials used in their adulteration, involve medicines, agricultural produce or organic food products.Second: Where the person reintroduced adulterated or spoiled goods into circulation or consumption despite their established unsuitability for use.Third: Where the person purchased adulterated, spoiled or counterfeit goods with the intention of putting them into circulation and making unlawful profit, whether by reselling them in their original condition, modifying them or recycling them.Fourth: Where the person engaged in promotion, marketing or misleading or deceptive advertising of such adulterated, spoiled or counterfeit goods, or provided false or inaccurate information regarding their nature, quality, source or ingredients.The regulation also grants judicial officers powers to deal with suspected goods, including inspecting shops, warehouses, factories and establishments, examining goods and taking the necessary legal measures. These measures include placing suspected goods in the supplier’s custody and at the supplier’s expense while they undergo inspection and analysis.Strict procedures for recalling adulterated, spoiled and counterfeit goods, with penalties of up to Dh2 millionStronger action against commercial fraudThe UAE is entering a new phase of tighter market oversight and stronger action against commercial fraud with the implementation of the new Executive Regulation of Federal Decree-Law No. (42) of 2023 on Combating Commercial Fraud, under Cabinet Resolution No. (107) of 2026, issued on July 13, 2026 and published in Federal Official Gazette No. 827.The new regulation translates the provisions of the law into more detailed operational procedures covering inspection, seizure, recall of non-compliant goods, their return to their source, destruction and recycling. The framework is designed to strengthen the speed of response to products that could pose risks to consumers’ health and safety or infringe the rights of trademark owners.A key feature of the new system is speed. Once notified of a recall, a supplier must begin withdrawing the product from the market within no more than 24 hours, while a recall notice must be published in both Arabic and English within 48 hours.24 hours — but what does this mean in practice?The provision does not, strictly speaking, mean that all adulterated, spoiled or counterfeit goods must be completely destroyed within 24 hours. Rather, the supplier is required to begin the recall and withdrawal process within 24 hours of receiving the notification.This is an important distinction because the regulation establishes a comprehensive process for dealing with non-compliant goods, beginning with their detection and verification, followed by their seizure or withdrawal from markets and warehouses, and ultimately determining how they should be dealt with.Depending on the circumstances, the goods may be returned to their country of origin or source, used or recycled where permitted, or destroyed in accordance with the applicable legal requirements.This approach is based on Article (5) of Federal Decree-Law No. (42) of 2023, which requires suppliers to withdraw adulterated, spoiled or counterfeit goods from markets and warehouses, either voluntarily or upon an order from the Ministry or competent authority. Suppliers must also notify relevant parties and announce the recall through appropriate means.The supplier is responsible for the costs associated with recalling, disposing of, destroying or returning the goods to their source.What is an “adulterated product”?The law provides a broad definition of commercial fraud. The offence is not limited to physically altering a product; it can also include providing false or misleading commercial information concerning the nature, quantity, essential characteristics, source, origin or validity of the goods.The law separately addresses spoiled goods, defined as products that are no longer wholly or partially fit for use, exploitation or consumption.It also addresses counterfeit goods, referring to products that, without authorisation, carry a trademark identical or similar to a legally registered trademark.Accordingly, a non-compliant product is not simply viewed as a low-quality item. It may fall within a wider legal framework covering consumer health and safety, intellectual property protection, the prevention of commercial deception and the integrity of market competition.What happens after a violation is discovered?The new regulation establishes a clearer process involving federal and local authorities.Competent authorities conduct inspections, verification and, where necessary, sampling. The Ministry of Economy and Tourism may intervene in specific circumstances, including where the competent local authority fails to take the necessary measures within the prescribed period, where the goods have been distributed across more than one emirate, or where they pose serious risks.Judicial officers are granted powers to inspect non-residential premises, take random samples and refer them for analysis, with the supplier bearing the cost of testing in accordance with the regulation.The published details of the regulation indicate that analysis procedures may take up to 15 working days in ordinary cases, with shorter periods applying to perishable goods.This highlights the importance of distinguishing between the 24-hour deadline for starting the recall and the subsequent technical and legal procedures required to determine how the goods should ultimately be dealt with.Not every suspected product is destroyed immediately. Some cases are subject to inspection, verification and legal procedures before a final decision is made regarding their disposal.Recall notices must be published within 48 hours.The regulation does not stop at requiring suppliers to act quickly. It also introduces an important public-information requirement aimed at protecting consumers.When a product is recalled from the market, the recall announcement must be published in both Arabic and English within 48 hours. This enables consumers to identify the affected product and take appropriate action, particularly when the product has already reached a large number of consumers.The measure represents a shift from a regulatory model focused primarily on identifying products inside shops or warehouses to a more comprehensive approach that follows the product throughout its lifecycle after it reaches consumers.Why is the new regulation significant?The importance of the new regulation lies in its role in bridging the gap between the legal provisions and their practical implementation.Federal Decree-Law No. (42) of 2023 requires suppliers to recall adulterated, spoiled or counterfeit goods, while leaving the detailed procedures, controls and deadlines to the Executive Regulation.Under Article (25) of the law, the Cabinet was tasked with issuing the Executive Regulation and the decisions necessary to implement the law within six months of its entry into force.During the transitional period, the law also maintained existing regulations and decisions to the extent that they did not conflict with its provisions, pending the issuance of the new legislative framework.The new regulation therefore updates the implementation procedures in line with the new law, which replaced Federal Law No. (19) of 2016 on Combating Commercial Fraud.Supplier responsibility does not end with the sale