Home / Regular Issue / JSSH Vol. 30 (4) Dec. 2022 / JSSH-8386-2021

 

Penal Protection for Consumers from Fake or Unreal Discounts: A Comparative Study of Emirati and French Laws

Mohammad Alkrisheh, Kameel Tariq and Nour Hamed Alhajaya

Pertanika Journal of Social Science and Humanities, Volume 30, Issue 4, December 2022

DOI: https://doi.org/10.47836/pjssh.30.4.19

Keywords: Consumer protection, commercial fraud, fake or unreal discounts, natural and legal persons, penal protection

Published on: 15 December 2022

When shops offer discounts, consumers are incentivised to acquire merchandise and/or services. So, it is also when merchants attempt to expand their product distribution and boost sales to increase profit margins. Unfortunately, merchants may also resort to disingenuous and fraudulent methods, such as announcing a fake or unreal discount sale. Since consumers require adequate legal protection from such harmful practices, Emirati and French legislators have criminalised fake and unreal discounts. This paper compares penal protection from fake or unreal discounts in Emirati and French legislation to balance the interests of merchants and consumers. This study adopts a qualitative methodology through a comparative and analytical approach and concludes that Emirati and French legislation adopts different criteria to achieve the desired goal of discounts. It was recommended that the Emirati legislator reconsider penalties for natural and legal persons committing commercial fraud by specifying up to three years imprisonment and a fine proportional to the value of the profits obtained from the crime of offering fake or unreal discounts. Furthermore, legislation should address the crime of announcing such discounts.

  • Abdullah, F., Ong, T. C., Manap, N. A., Bidin, A., & Aziz, H. A. (2021). A comparative analysis of unfair terms in consumer contracts in Malaysia and Singapore. Pertanika Journal of Social Sciences & Humanities, 29(S2), 119-133. https://doi.org/10.47836/pjssh.29.s2.09

  • Court of Appeal of Bourges. (2001). Court of appeal of Bourges, of 11 January 2001, 01-00003. https://www.legifrance.gouv.fr/juri/id/JURITEXT000006937631/

  • Court of Cassation Criminal Division. (2004). Court of cassation, criminal division, of 13 January 2004, 03-82.045. https://www.legifrance.gouv.fr/juri/id/JURITEXT000007069693/

  • Dahiyat, E. A. R. (2011). Consumer protection in electronic commerce: Some remarks on the Jordanian electronic transactions law. Journal of Consumer Policy, 34(4), 423-436. https://doi.org/10.1007/s10603-011-9170-9

  • Dahiyat, E. A. R. (2019). Online shopping and consumer rights in the UAE: Do we need a specific law? Arab Law Quarterly, 33(1), 35-57. https://doi.org/10.1163/15730255-12331014

  • De Gaulle Fleurance and Associés. (2019). Information – April 24th 2019: Modification of the French Commercial Code on BtoB relationships in all business sectors. https://www.degaullefleurance.com/en/information-april-24th-2019-modification-of-the-french-commercial-code-on-btob-relationships-in-all-business-sectors/

  • El-Gendy, H. A. (1996). Explanation of the law on the suppression of fraud and fraud: (In accordance with the latest amendments to law no. 281 of 1994) commenting on it by saying fiqh and judicial rulings (2nd ed.). Nahda Press.

  • French Ministry of Economy and Finance. (2019). Order of 27 May 2019 setting the start dates and times of the sales as well as their duration in the application of article L. 310-3 of the French Commercial Code. https://www.legifrance.gouv.fr/loda/id/JORFTEXT000038523234/

  • Ghapa, N., & Ab Kadir, N. A. (2021). Information regulation: A measure of consumer protection. Pertanika Journal of Social Sciences & Humanities, 29(S2), 59-74. https://doi.org/10.47836/pjssh.29.S2.05

  • Grewal, D., Krishnan, R., Baker, J., & Borin, N. (1998). The effect of store name, brand name and price discounts on consumers’ evaluations and purchase intentions. Journal of Retailing, 74(3), 331-352. https://doi.org/10.1016/S0022-4359(99)80099-2

  • Hoseini, A. S. A., Mohammadi, M. R. A., & Poor, A. A. (2014). Civil responsibility for producers and suppliers of defective foods in Iranian law. Private Law, 11(1), 1-21. https://doi.org/10.22059/jolt.2014.52493

  • Khan, M. A. (2011). Consumer protection in Islamic law: An analytical study. Lambert Academic Publishing. https://ssrn.com/abstract=1872407

  • La Base Lextenso. (2022). The proposal for a directive on unfair commercial practices. https://www.labase-lextenso.fr/petites-affiches/PA200315301

  • Lasbordes, V. (2000). Les contrats déséquilibrés [Unbalanced contracts, Doctoral thesis, Presses Universitaires d’Aix-Marseille]. http://www.theses.fr/1999TOU10078

  • Lexis Nexis. (2022). Contracts- competition-consumption - The trilogy at the center of the activity of business lawyers. https://boutique.lexisnexis.fr/52-contrats-concurrence-consommation#

  • Marlyna, H., & Sardjono, A. (2019). Does the trademark protection regulation protect consumers against counterfeit products? Analyzing the theories of trademark and Indonesian trademark law. Pertanika Journal of Social Sciences & Humanities, 27(3), 1865-1877. http://www.pertanika.upm.edu.my/resources/files/Pertanika%20PAPERS/JSSH%20Vol.%2027%20(3)%20Sep.%202019/30%20JSSH(S)-1082-2019.pdf

  • Mustafa, A. B. (2006). Commercial contracts and banks operations. Dar Al-Nahda Al-Arabiya. https://books.google.ae/books?id=YsSHQgAACAAJ

  • Office of Justice Programs. (2019). French penal code. Retrieved from https://www.ojp.gov/ncjrs/virtual-library/abstracts/french-penal-code

  • Raghubir, P., Inman, J. J., & Grande, H. (2004). The three faces of consumer promotions. California Management Review, 46(4), 23-42. https://doi.org/10.2307/41166273

  • Sadek, M. (2001). Criminal protection of the consumer. A comparative study. Raja Center. https://islamarchive.cc/index.php?p=bib_lib&id=24004

  • Stoop, P. N. (2015). The consumer protection act 68 of 2008 and procedural fairness in consumer contracts. Potchefstroom Electronic Law Journal, 18(4), 1091-1124. https://doi.org/10.4314/pelj.v18i4.10

  • The Lawyers and Jurists. (2022). What is fraud and misrepresentation. https://www.lawyersnjurists.com/article/what-is-fraud-and-misrepresentation/

  • UAE Government. (1993). Federal law no. 18 of 1993 concerning the commercial transaction law. https://ded.ae/ded_files/Files/%D8%A7%D9%84%D9%82%D9%88%D8%A7%D9%86%D9%8A%D9%86%20%D9%88%D8%A7%D9%84%D8%AA%D8%B4%D8%B1%D9%8A%D8%B9%D8%A7%D8%AA%20PDF/Federal_Law_(18)_1993_Concerning_Commercial_Transaction_Law.pdf

  • UAE Government. (2012). Federal law no. 4 of 2012 on regulation of competition. https://alp.unescwa.org/plans/1752

  • UAE Government. (2016). Al qanoon etihadi 19 mokafaha al ghosh el tejari [Federal law no. 19 of 2016 concerning the fight against commercial fraud]. https://ded.ae/DED_Files/Files/%D8%A7%D9%84%D9%82%D9%88%D8%A7%D9%86%D9%8A%D9%86%20%D9%88%D8%A7%D9%84%D8%AA%D8%B4%D8%B1%D9%8A%D8%B9%D8%A7%D8%AA%20PDF/%D9%82%D8%A7%D9%86%D9%88%D9%86%20%D8%A7%D8%AA%D8%AD%D8%A7%D8%AF%D9%8A%20%D8%B1%D9%82%D9%85%20(19)%20%D9%84%D8%B3%D9%86%D8%A9%202016%20%D9%81%D9%8A%20%D8%B4%D8%A3%D9%86%20%D9%85%D9%83%D8%A7%D9%81%D8%AD%D8%A9%20%D8%A7%D9%84%D8%BA%D8%B4%20%D8%A7%D9%84%D8%AA%D8%AC%D8%A7%D8%B1%D9%8A.pdf

  • UAE Ministry of Economy. (2020). Federal Law No (15) of 2020 on consumer protection. https://www.moec.gov.ae/en/federal-law-no-15-of-2020-on-consumer-protection

  • Yousef, A. F. (2009). The universality of e-commerce its contracts, and methods of combating electronic commercial fraud. Almaktab Aljamieiu Alhadith. https://www.noor-book.com/book/review/428269