The Cabinet:
− Having reviewed the Constitution;
− Federal Law No. (1) of 1972 Regarding the Competences of the Ministries and the Powers of the Ministers, as amended;
− Federal Law No. (14) of 2016 Regarding Administrative Violations and Penalties in the Federal Government;
− Federal Law No. (15) of 2020 Regarding Consumer Protection, as amended;
− Federal Decree by Law No. (32) of 2021 Regarding Commercial Companies, as amended;
− Federal Decree by Law No. (14) of 2023 Regarding the Modern Technology-Based Trade;
− Cabinet Resolution No. (66) of 2023 Regarding the Executive Regulations of Federal Law No. (15) of 2020 Regarding Consumer Protection; and
− Upon the proposal of the Minister of Finance and the approval of the Cabinet;
Hereby resolves as follows:
Article (1) Definitions
The definitions set forth in Federal Decree by Law No. (14) of 2023 Regarding the Modern Technology-Based Trade shall apply to this Resolution. Otherwise, the following expression shall have the meaning assigned thereto, unless the context otherwise requires:
Decree by Law: Federal Decree by Law No. (14) of 2023 Regarding the Modern Technology-Based Trade.
Article (2) Scope of Application
1. The provisions of this Resolution shall apply to any person who commits any of the acts that constitute a violation of the provisions of the Decree by Law.
2. Subject to clause (1) of this Article, the provisions of this Resolution shall not prejudice any penalties prescribed under any other legislation, where the acts committed in violation of the Decree by Law are regulated under such legislation, whether at the federal or local level.
3. The acts and penalties specified in the Annex of Administrative Penalties attached to the Cabinet Resolution Regarding the Executive Regulations of the Federal Law Regarding Consumer Protection shall be excluded from the provisions of this Resolution.
Article (3) Administrative Penalties
1. Without prejudice to any more severe penalty or measure stipulated in the Decree by Law, the Ministry may impose one or more administrative penalties upon any person who commits any of the acts that constitute a violation of the provisions of the Decree by Law as set out in the Schedule annexed to this Resolution.
2. The Minister shall issue a Resolution determining the mechanism for investigation, the determination of administrative penalties, and the criteria applied for the determination thereof, in a manner that ensures proportionality between the penalty and the gravity of the violation.
3. By way of exception to the graduated penalties stipulated in the Schedule annexed to this Resolution, the Ministry may, in cases of serious violations, impose the more severe administrative penalty without adhering to the gradation referred to in the attached Schedule.
4. Continuation of the violation after the expiry of the warning period or after the lapse of the fine payment period shall constitute a new violation justifying the imposition of a new administrative penalty.
5. Where the Competent Authority undertakes the role of supervision and control over any acts committed in violation of the provisions of the Decree by Law, such Competent Authority shall determine and impose the appropriate administrative penalty. The proceeds of the fines shall accrue thereto where it decides to impose any financial fine as an administrative penalty.
6. Fines shall be paid within thirty (30) days from the date of notification of the administrative penalty decision. The administrative fines set out in the Schedule annexed to this Resolution shall be collected in accordance with the mechanism determined by the Ministry of Finance after coordination with the Minister.
7. For the purposes of collecting the administrative fine stipulated in the Schedule annexed to this Resolution, a fraction of a day shall be deemed a full day, and a fraction of a month shall be deemed a full month.
8. Subject to the preceding clauses of this Article, the Ministry shall notify the Competent Authority of any acts committed in violation of the provisions of the Decree by Law prior to exercising its supervisory and control competences. Where the Competent Authority elects to exercise such supervisory and control competence, the provisions referred to in clause (5) of this Article shall apply.
Article (4) Grievance against Administrative Penalties
1. The Ministry shall notify the violator of the decision imposing the administrative penalty within fifteen (15) days from the date of its issuance, through the means approved thereby, provided that the notification shall include a statement of the violation committed and any other Data determined by the Ministry.
2. Any person having legal capacity and interest may submit a grievance to the Ministry against the decision imposing the administrative penalty within thirty (30) days from the date of notification of the contested decision. The grievance shall be reasoned and accompanied by all supporting documents. No grievance shall be admissible after the lapse of the aforementioned period.
3. The grievance shall be decided upon within thirty (30) days from the date of its submission. The lapse of this period without the issuance of a decision shall be deemed a rejection of the grievance.
4. The decision issued in respect of the grievance shall be final.
Article (5) Amendment of Penalties
The Cabinet shall have the competence to introduce any amendments to the penalties set out in the Schedule annexed to this Resolution, whether by addition, deletion, or modification.
Article (6) Repeals
Any provision that contradicts or conflicts with the provisions of this Resolution shall be repealed.
Article (7) Publication and Entry into Force
This Resolution shall be published in the Official Gazette and shall enter into force on the day following the date of its publication.
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