MCI, Imposing a Fine on an Auto Company Involved in Selling a Damaged Vehicle as New

09 May 2017
​A Verdict Including a Fine of SR 300,000 Issued and Published in the Local Newspapers
The Ministry of Commerce and Investment announced the issuance of a verdict imposing a fine of SR 300.000, and to be published in the local newspapers against an auto company involved in selling a vehicle to a citizen, claiming that it is brand new, while it had been undergone to tinsmithing and repainting the front bumper and fender, and this is considered cheating and a fraud action towards the customer. 

This comes within the Ministry's ongoing efforts to protect the consumers, by imposing penalties and taking stern measures against any party found involved in violating the provisions of the Anti-Commercial Fraud Law.

The details go back when a citizen lodged a complaint against an auto co., which sold him a car, claiming that it is brand new, but he discovered that it had been damaged after a collision, and it had been repaired and repainted, upon contacting the company, they offered him a compensation of SR 15 thousand riyals, in return of such damage, but he refused and asked for a history report on what happened actually to the car.

The auto company informed the Ministry that the citizen had received the car in a perfect condition, but after questioning both parties, the auto co. admitted that there were damages in the car and the customer had not been informed or given a notice about that, giving some excuses that Abha branch did not know that the said car had experienced some damages due to loading and unloading conditions. After reviewing all the evidences and questioning both parties, the company was found guilty of violating Anti-Commercial Fraud Law, and the judicial authorities decided to impose a fine of SR 300,000, and to publish the verdict in the local newspapers.

Meanwhile, the Ministry of Commerce and Investment emphasized that it will not hesitate in imposing the legal penalties on those involved in cheating and deceiving the consumers, indicating that the covering up or concealing any defects in the cars, by the auto agencies, would make them liable to severe penalties in accordance with the provisions of the Anti-Commercial Fraud Law.
Notably, the ministry had already detected some violations on a number of auto companies and agencies, selling cars and claiming that they are brand new, while they are actually damaged and repaired, without giving any notice to the customers about that. All legal measures had been taken against the violators at that time, as well as imposing the proper penalties.

MCI would like to confirm that the application of the legal measures against the violators of the Anti-Commercial Fraud Law will be continued. The Ministry calls on all consumers to lodge their complaints to MCI Consumer Call Center (1900) or through the application of a Commercial Violation Report, via their smart phone.
Last Modified 25 Dec 2018