Law No. (6) of 2025 On Regulating Sale by Discounted Prices in Ras Al Khaimah We, Saud Bin Saqr Bin Mohammed Al Qasimi Ras Al Khaimah Ruler After perusal of Constitution of United Arab Emirates; And Federal Law No. (15) of 2020 on Consumer Protection, as amended; And Federal Decree-Law No. (50) of 2022 on Promulgating Commercial Transactions Law; And Federal Decree-Law No. (14) of 2023 on Commerce Through Modern Technology Means; And Federal Decree-Law No. (51) of 2023 on Promulgating Financial Reorganization and Bankruptcy Law, as amended; And Federal Decree-Law No. (55) of 2023 on Media Regulation; And Law No. (11) of 2008 on Advertisements Control; And Law No. (7) of 2012 on Establishing Executive Council of Ras Al Khaimah Emirate, as amended; And Law No. (6) of 2016 on Selling at Discounted Prices (Sales) and Clearance Sales; And Law No. (8) of 2016 on Regulating Practicing Economic Activities in Ras Al Khaimah; And Law No. (2) of 2025 on Organizing Department of Economic Development in Ras Al Khaimah; And after approval of the Executive Council; have promulgated the following Law: Article (1) Definitions The words and phrases stated in this Law shall mean the meanings indicated opposite each of them, unless the context of text requires otherwise: Emirate: Emirate of Ras Al Khaimah. Department: Department of Economic Development in the Emirate. Chairman: Department Chairman. Director General: Department Director General Competent Committee: Customers Complaints & Grievances Committee in the Department. Store: The main branch or any branches thereof, whether it is physical or virtual, for which a license is issued from the Department to practice the commercial activity within the Emirate. Discounts: Sale of one commodity or more at a price lower than original price thereof with the intention of promotion or achieving a commercial purpose, whatever its name or the means of advertising it. Clearance Sales: Sale of goods at reduced prices with the intent to completely or partially clear out inventory or due to the closure of the store or change of activity or any other reason accepted by the Department, whatever its name or the means of advertising it. Discounts or Clearance Sales Permit: A document issued by the Department including approval thereof to conduct discounts or clearance sales. Discounts or Clearance Sales Term: the term specified in the permit issued by the Department, during which discounts or clearance sales are permitted in accordance with the permit’s conditions. Article (2) Discounts or Clearance Sales Permit No store may make discounts or clearance sale on any commodity or more except after obtaining prior permit from the Department, which specifies the following: 1. Start and end date of discounts and clearance sales term. 2. Original price of each commodity and the discounted price. 3. Approved sale or discount rate. Article (3) Requirements of Issuing Discounts or Clearance Sales Permit In order to issue discounts or clearance sales permit, it is required to meet the following conditions and controls: 1. The store shall have a valid license issued by the Department and a previous license shall be sufficient if the permit is for the purpose of clearance. 2. Provide a detailed list of the goods subject to discounts or clearance sales, indicating therein the original price and the reduced price intended to be offered. 3. The discounts shall be at fixed or graduated rates along with clearly stating this in the application. 4. The discount percentage shall not be less than (15%) in discounts, and (40%) in clearance sales, out of the original price of the commodity. Article (4) Verification of Compliance with Permit Controls and Conditions The Department may ask the store to provide the necessary documents and data to verify the availability of the determined conditions and controls for making discounts or clearance sales, particularly the following. 1. Commodities purchasing invoices or importing documents or what proves the cost of producing them locally, as the case may be. 2. The cost of the commodity upon importation or manufacturing, including overheads. 3. The average selling price of the commodity during a previous period determined by the Department. 4. Commodity type and country of origin. The Department may, upon verification results, reject, amend or cancel the permit, if it is proved that the submitted data is inaccurate or violates the determined conditions and controls. Article (5) Public Events and Promotional Festivals Organization The Department may, in coordination with the concerned authorities, organize seasonal public events, such as exhibitions, festivals and promotional initiatives, dedicated to specific types of commodities or services. The participation of the store in these events shall not prejudice its right to obtain full discounts and clearance sales terms stipulated under this Law. Article (6) Service Fees Schedule Upon proposal from the Department, the Executive Council shall issue fees schedule for services provided by the Department, in accordance with the provisions of this Law and the resolutions issued in implementation thereof; and the proceeds of fees shall devolve into the Department treasury. Article (7) Procedures of Submitting Permit Application and Objecting Thereto The permit application is submitted to the Department and shall be determined on within period of seven working days from the date of submitting it and the non-reply to the application during the mentioned period shall be considered as dismissal thereof. In the event of dismissing the application, the decision must be reasoned one and notified to the concerned party at address thereof or through the means of communication registered with the Department. The concerned party may appeal the dismissal decision to the Director General within seven working days from the date of being notified or from the expiry date of the term for deciding on his request without notifying him of the decision The Director General may, if the reasons for dismissal are eliminated, approve the application, otherwise, he may refer the complaint to the competent committee to decide thereon within a period not exceeding seven working days from the date of referral and the decision in respect thereof shall be final and the elapsing of this period without deciding on the complaint shall be considered dismissal thereof. Article (8) Discounts Term and Extension Thereof The discounts permit term shall be thirty days and the Department may issue unlimited number of permits, provided that the interval between each permit shall not be less than seven days. The Department may, upon a request submitted by the concerned party before the expiration of the permit term, extend it for an additional term not exceeding fourteen days, after paying the prescribed fees and the extension term shall be counted from the day following the expiration of the original term. In all cases, the maximum term of a single permit, including the extension terms, shall not exceed forty-five consecutive days. Article (9) Exceptions From Discounts Term The following cases shall be excluded from the maximum term of the discounts, number of permits issued therefor and the intervals among them: 1. The sale of used movable property at public auction, whenever the sale takes place inside accredited halls or through electronic platforms licensed by the competent authority. 2. Auctions and sales conducted by government or judicial authorities, either by themselves or through third parties, in implementation of the provisions of laws or resolution issued in implementation thereof. 3. Agricultural products, live animals and derivatives thereof, which are traditionally sold by auction in locations designated for that. Article (10) Permit Applicability To Store Branches The permit issued by the Department to the store to make discounts or clearance sales shall apply to branches thereof, whenever they practice the same activity and under the same trade name of the main store; provided that fees stipulated on each branch shall be collected separately, in accordance with the controls and procedures issued by a decision from the General Manager. Article (11) Exclude Companies With Branches In The Emirate The Department may, upon an application submitted thereto, exempt the company's branch operating in the Emirate from the condition of time interval among discounts permits thereof whenever the discounts permit is issued while the parent company is conducting an unified promotional campaign in other Emirates within the State, provided that copy of the permit issued by the competent authority in the Emirate where the campaign is being conducted is attached. In all cases, that branch may not apply for new discounts permit until a period of no less than seven days has elapsed from the expiry date of the previous permit. Article (12) Clearance Sales Permit Issuance Cases The owner of store or whoever represents him legally is entitled to apply to the Department to get clearance sales permit in any of the following cases: 1. Change the business activity to a completely different activity from the existing one. 2. Cancel the trade license along with stating the reasons thereof. 3. Clear out store as a result of issuing bankruptcy judgment. 4. Stop practicing the activity in one or more items which he trades, provided that clearing out shall be limited to such items only. 5. Transfer the business activity to another emirate, provided that clearing out procedures shall be completed within a period not exceeding four months from the date of submitting the application. 6. Goods are damaged or impaired due to fire, water leakage, humidity, spread of pests, insects or other similar causes. Article (13) Clearing Out Term & Its Extension Controls The clearing out term shall be thirty days and the Department may extend it for an additional term or terms for serious reasons that it finds acceptable, provided that the total thereof shall not exceed ninety days. The concerned party must submit clearing out application to the Department within the validity period of the trade license, or within three months from expiration date thereof. The Department may, for serious reasons which it finds acceptable, accept the application if submitted after the expiration of the mentioned period. In all cases, if the application had been accepted after the determined deadline or an extension is approved, the Department may determine the percentage of discount applicable to the commodities or goods subject to clearing out, taking into account market conditions and achieving a balance between consumer rights and trader interests. Article (14) Commitment to Clarify Prices and Maintain Lists During Discounts The owner of the store that has obtained a permit to make discounts is obligated to place clear and legible price tags on every item included in the discounts, showing the original price and the discounted price, for the duration of the permit’s validity and he shall commit also, during the same period, to maintain a detailed list that includes the original prices of the commodities, subject matter of the permit, alongside the discounted prices, provided that this list shall be available to the competent inspector upon request. Article (15) Discounts & Clearance Sales Announcement Controls The announcement of making discounts or clearance sales is prohibited, by whatever means, whether through media or by placing a sign or poster on the facade of the store, unless prior approval is obtained from the Department and license from the concerned authorities, each within competence thereof, in accordance with the effective legislation in the Emirate. The advertisement must clearly and visibly include the start and end date of the discounts or clearance sales term, as well as the determined percentage of the discounts. It is permissible to announce the discounts three days before the date thereof. It is necessary to adhere to media content standards and the use of any advertising means that disrupt public order, public tranquillity or cause disturbance to the public is prohibited, particularly: calling out, ringing bells or using loudspeakers. Article (16) Judiciary Police Employees of the Department, designated by resolution from the Chairman, upon suggestion of Director General, shall be empowered with capacity of law officers in respect of acts committed in violation of provisions of this Law or resolutions promulgated in implementation thereof, in order to perform their duties, they shall be entitled to enter the stores licensed to make discounts or clearance sales, inspect activities thereof, look into necessary books and documents, make reports and take stipulated legal procedures. Article (17) Penalties Without prejudice to any more severe penalty stipulated by other law, whoever violates provisions of this Law or resolutions promulgated in implementation thereof shall be punished by a fine not less than one thousand dirhams and not exceeding one hundred thousand dirhams. In addition to the fine, the Director General may decide to close the violating store or any of its branches, sections or activities, subject matter of the violation, for a period not exceeding fifteen days. In the event of repeating the same violation within a year from the date of the previous one, the fine and the duration of closure shall be doubled. The Department may conciliate with the violator after removing the reasons of the violation at his own expense, against paying an amount not less than half of the maximum limit of the determined fine. Article (18) Executive Resolutions The Department Chairman or Director General, each within competence thereof, shall issue the necessary resolutions to implement the provisions of this Law. Article (19) Cancellation Law no. (6) of 2016 on Selling in Reduced Prices (Discounts) and clearance sales as well as each provision contradicts with provisions of this Law shall be repealed. The existing policies, systems, regulations, resolutions and circulares issued before the provisions of this Law come into force shall remain in force in anything that does not contradict with the provisions thereof, until a replacement is promogulated according to the provisions of this Law. Article (20) Law Enforcement This Law shall come into force as date of its promulgation and be published in the Official Gazette. Saud Bin Saqr Bin Mohammed Al Qasimi Ras Al Khaimah Ruler Promulgated by us on this day eighth of Rabie Al Akher 1447H. Corresponding to thirtieth of September 2025G.