E-COMMERCE LAWS: VIOLATORS TO FACE FINES UPTO 1 MILLION

The Ministry of Commerce issued a warning against utilizing various strategies to advertise products on social media. Any infractions of the E-Commerce Law’s provisions and its executive rules will be dealt with severely, and offenders will face fines of up to SR1 million in addition to having their offending websites shut down. Some of these advertisers are misusing the phrase “This is not an advertisement” to promote some goods and some social media celebrities appear in such advertisements.

According to the statement released by the ministry, the ministry has kept an eye on these social media advertisements and is checking to see if they are in compliance with the E-Commerce Law’s executive requirements. The ministry claimed that it is in contact with the businesses that are being advertised to ascertain whether or not these promotional materials are relevant to their items for sale.

The ministry further explained that the E-Commerce Law and its executive regulations stipulate that it is necessary to include a statement explaining that the material is an advertisement in the e-commercial advertisement. Also, that the E-commerce Law forbids the inclusion of any false displays, statements, or claims, as well as any terms that directly or indirectly lead to misleading or deceiving the consumer, in an e-advertisement. Additionally, it’s against the law to use any logo or trademark that the e-service provider does not have permission to use, as well as to utilize fake trademarks.

The ministry reserves the right to compel the e-service provider to delete the infringement or withdraw the e-advertisement within one day of the date of reporting the violation if he refuses to comply with this in contravention of the requirements of the legislation. The ministry would submit offenders to a committee to investigate violations of the E-Commerce Law, which carries fines of up to SR1 million in addition to website banning and barring offenders from engaging in commercial activities in the future.

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