Saudi Arabian Government Announces Ban on "Lottery" Retail Prize Draws

The Ministry of Commerce in Saudi Arabia has announced the prohibition of "lottery" prizes, which entail purchasing goods or products to be eligible for cash rewards, entry into prize draws, or the distribution of money within products offered for sale.

The ministry has called upon both commercial entities and individuals who have organized such activities to adhere to regulatory procedures, emphasizing that violators will be referred to the Public Prosecution for further action.

In accordance with the Anti-Commercial Fraud Law and its Executive Regulations, requiring a purchase as a condition for participation in commercial competitions is deemed illegal. The law explicitly prohibits any inclusion in competitions that contradict Sharia law or established customs within the Kingdom.

Furthermore, the ministry has underscored its commitment to closely monitoring compliance among commercial establishments and advertisers licensed by the General Authority of Media Regulation. These entities are expected to abide by the regulations governing commercial competition outlined in the Anti-Commercial Fraud Law and its executive regulations. Notably, conducting or advertising commercial competitions without obtaining the necessary license is expressly forbidden.

This regulatory stance aligns with broader efforts to uphold legal standards and prevent practices that may contravene religious or cultural norms. By enforcing these regulations, the Ministry of Commerce aims to safeguard consumer rights, promote fair competition, and maintain ethical business practices across the Kingdom.

Additionally, the emphasis on regulatory oversight underscores the government's commitment to transparency and accountability in commercial activities. By holding both commercial entities and advertisers accountable for adhering to legal frameworks, the ministry seeks to foster trust and confidence in the marketplace, thereby contributing to a conducive environment for sustainable economic growth and development.

Overall, the prohibition of "lottery" prizes and the enforcement of regulations governing commercial competitions reflect Saudi Arabia's dedication to upholding legal standards and preserving the integrity of its commercial landscape. Through concerted regulatory efforts, the ministry aims to ensure compliance with established laws and regulations while promoting a fair and transparent business environment for all stakeholders.

Read also: Saudi Arabia: Disbursement of over SR3 billion to social security beneficiaries

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