Law No. 5 of 2016 Regarding Promotional Campaigns & Special Offers For Commercial Advertising Purposes We, Saud Bin Saqr Bin Mohamed Al Qasimi - Ruler of Ras Al Khaimah After perusal of the UAE Constitution; And Law No. 4 of 2016 on Restructuring & Organizing Department of Economic Development; And based on what is required by public interest ; Have promulgated the following Law: Article 1 The words and phrases stated in this Law shall have the meanings indicated opposite each of them, unless the context of text requires otherwise:- Emirate: Emirate of Ras Al Khaimah. Ruler: His Highness Ruler of Ras Al Khaimah. Department: Department of Economic Development in the emirate. President: President of Economic Development Department. Director: Director - General of Economic Development Department. Competent Section: Trade Permits Section of Commercial Affairs Administration in the Department. Competent Committee: Customers Complaints & Grievances Committee in Department of Economic Development. Commercial Shop: The company or establishment licensed by the Department to practice an activity of commercial purpose in the emirate. Promotional Campaign: A commercial event or practice aims at increasing sales and profits or promote a new product. Article 2 The promotional campaigns shall aim at attracting and stimulating customers to purchase or promote a new product through display and advertise services and products. The promotional campaign shall take many forms, including: 1- Existence of incentive prizes, including immediate or deferred drawing, such as car drawing. 2- Present free gifts or samples with no consideration. 3- Offer or present free drinks and food for tasting. 4- Provide free services with no consideration. 5- Existence of promoter. 6- Display goods in an innovative way in public places. Article 3 Anyone wants to conduct promotional campaign or present special offers, must obtain a permit that allows him to start such campaign from the competent section in the Department at least two weeks prior to the scheduled date to start the campaign or offer. Article 4 In order to obtain a permit to conduct promotional campaign or special offer, the following conditions shall be considered: 1- The Organizer of the campaign or special offer shall have valid trade license in the emirate. 2- Submit permit application on the form prepared for this purpose to the competent section. 3- Pay the established fees according to approved fees schedule. Article 5 The Department is entitled to reject permit application along with indicating the reasons. The person whose application had been rejected is entitled to grieve to the Competent Committee within one week from the date of rejecting permit application. The Committee should decide on the grievance within a period not exceeding one week from the date of submitting the grievance and the decision of the Committee shall be final. Article 6 There are several types of promotional campaigns, including: 1- Small (Simple) promotional campaign which duration is one month or less and total value of its prizes shall not exceed AED 10,000 (ten thousand dirham) 2- Medium promotional campaign which duration shall not exceed two months and total value of its prizes ranges between (AED 10,001 – AED 50,000). 3- Big promotional campaign which duration shall not exceed two months and total value of its prizes exceeds AED 50,000 (fifty thousand dirham). 4- Try free samples in the existence of a promoter including (tasting – free offers – presentation of product) and for one-month period. 5- Simple promotional campaign (simple offers), free product attached with other product. Article 7 It is permissible to move from simple to medium or big campaign by increasing total value of prizes after obtaining permit thereof from competent authority, but in case number of promotion sites exceeds eight sites, it shall be called comprehensive promotional campaign and this shall apply to first, second and third clauses of article (6) of this law. Article 8 There are several types of special offers, including: 1- Present gifts or prizes granted in return of shopping with specified purchase value. 2- Reduce selling prices of commodities by maximum one or two percentage. 3- Various offers on foodstuff and consumables only. Article 9 In order to get permit related to clause (2) of article (8), the following shall be required: 1- The reduction percentage of the special offer shall not be less than 15% of its price before the offer. 2- The person authorized to make the special offer shall place labels on the displayed goods indicating therein the prices before and during the special offer. 3- The person authorized to make the special offer shall maintain the original price list along with the discounted prices stamped with Department’s stamp to present the same upon request. Article 10 It is permissible, in exceptional cases and after approval of competent section, to permit promotional campaigns with maximum period of one calendar year and the fees shall be doubled as per the campaign’s type, with the necessity to make at least one draw every two months if the campaigns are medium or big. Article 11 The permit issued by the Department to commercial shop to conduct promotional campaign or special offer shall apply to shop’s branches, provided that the Department shall collect half value of the established fee. Article 12 The Department may permit extension of promotional campaign or special offer term for a period of two weeks and in maximum of similar period starting from the expiry date of the permit after paying the established fee. Article 13 The fees of multi events promotional campaigns organized through the head office and branches of the establishment or sites participating with it, shall be calculated as follows: 1- The dues of the higher fee event shall be calculated by collecting the fee for the head office, in addition to the branches thereof and sites participating in the campaign. 2- The dues of the lower fee event shall be calculated by collecting the fee of each event for the head office only. Article 14 The competent section shall approve advertising coupons (drawings, scratch & win, discounts) as follows: 1- Advertising coupons related to promotional campaigns and special offers for flat fee of AED 300. 2- Advertising coupons related to issuance of discounts and facilities cards for fee of 5% of discount tickets value. Article 15 The provisions of promotional campaigns or special offers shall apply to the following terms: Sales – Discounts – Distinctive Prices – Competitive Prices – Special Prices – Smashing Prices – Big Surprises – Buy One & Get One Free Article 16 The commercial establishment may promote its products and services through promotional advertisements which include paper advertisements, brochures, booklets, fabric and plastic advertising banners, advertising posters on storefront, advertising CDs, display stand, Roll-up & display models, etc., after paying the established fees. Article 17 Applicant of permit for incentive prizes draw should indicate in his application the following: 1- Quality of marks and whether they are placed within the products or packages or internal covers of the product or separately. 2- Number and terms of tickets and method of distributing them to customers inside the commercial shop. 3- Number of proposed prizes, value and method of distribution thereof. 4- Place, time, system and method of the draw. 5- Time of awarding the prizes and whether it is immediate or on specific date. Article 18 The owner of the commercial shop shall commit to announce the date of the draw on incentive prizes and state time and place thereof. Article 19 The following shall be required in respect of incentive prizes: 1- Tickets shall be in return of purchasing the promoted commodities with specific value. 2- The prizes shall be in kind and not in cash. Article 20 If the ticket separate, the serial number, name of permit applicant authority, permit number and issuance year shall be printed thereon and, it should be stated on the ticket that it is given in return of purchasing a commodity from the commercial shop, as well as statement of the prizes, provided that a guarantee letter from an accredited bank with value of the prizes shall be presented and the validity of the tickets shall be from the commencing date of the promotional campaign and for three months after the end of the draw. Article 21 Draw on the tickets shall be public and at the place and time specified in the permit. Draw shall be conducted via the computer or any other means specified in the permit. Article 22 It is not permissible to postpone date or place of the draw specified in the permit or amend number of tickets permitted to be issued except in cases of necessity or after approval of the Department, provided that the person who had been granted the permit shall announce that in the same way he announced his promotional campaign. Article 23 Upon conducting the draw on incentive prizes, it shall be taken into account that two draws shall be conducted for each prize so that there shall be one original winner and one substituent winner, in order to face a situation where original winner did not receive his prize. Article 24 The Department’s employees who have the capacity of law officers are entitled to monitor implementation of this law’s provisions and for this purpose, they have the right to enter commercial shops licensed to conduct promotional campaigns and special offers and view any relevant documents or prove acts occurred in violation of established provisions and make necessary record of evidence in this regard and take necessary legal procedures. Article 25 Without prejudice to any more severe penalty stipulated by any other law, anyone violates provisions of this law or resolutions issued thereby shall be punished by a fine not less than five hundred dirhams (AED 500) and not more than one hundred thousand dirhams (AED 100,000) and penalty shall be doubled in case of repeating the violation. Also Department shall be entitled to take the following measures: 1- Warning 2- Closing 3- Confiscation Article 26 The President of Executive Council in the emirate shall issue the executive regulation of this law. Article 27 Any text which provisions contradict with the provisions of this law shall be cancelled. Article 28 This law shall come into force as date of its issuance and shall be published in the Official Gazette. Saud Bin Saqr Bin Mohamed Al Qasimi, Ruler of Ras Al-Khaimah Issued by us on this day twelfth of Muharam 1438 H. Corresponding to thirteenth of October 2016 G.