Decree-Law No. 10 of 1979 on the Supervision of Trade in Goods, Services and Crafts and the Pricing of Certain Goods

Decree-Law No. 10 of 1979
on the Supervision of Trade in Goods, Services and Crafts and the Pricing of Certain Goods

Article 1

The Ministry of Commerce and Industry shall be competent to supervise trade in goods and services and the methods of carrying out crafts. The Minister of Commerce and Industry may take the necessary measures and procedures in the following matters:
First:
Securing the supply of goods where the public interest so requires. To achieve this purpose, he may in particular:
1- Require every person who possesses, imports or sells any goods to submit to the Ministry, within the period it specifies, the data relating to their quantities, descriptions, cost and selling prices.
2- Requisition any goods when necessary in return for fair compensation, in the assessment of which the cost and a reasonable profit margin shall be taken into account. Such compensation shall be assessed by a committee formed by a resolution of the Minister of Commerce and Industry.
3- Prohibit the export of any goods or make their export subject to prior permission.
4- Regulate the method of selling any goods or restrict their transport from one place to another.
Second:
Regulating the method of providing any service or carrying out any craft.
Third:
Prohibiting the import, display and sale of goods and materials of dangerous use where the public interest or the requirements of the personal safety of individuals so require.

* Replaced by Law No. 117 of 2013 (Kuwait Al-Youm, Issue No. 1138, 30 June 2013).

Article 2

It is prohibited to work towards raising the prices of goods artificially. Among the means of doing so shall be deemed the dissemination of false news among the public, or the storing or concealment of quantities of goods with the intention of making a profit that is not the natural result of the reality of supply and demand.

Article 3

Certain goods, services and crafts may be made subject to the pricing system. Such goods, services and crafts and the prices fixed for them shall be specified by a resolution of the Minister of Commerce and Industry.

* Replaced by Law No. 117 of 2013 (Kuwait Al-Youm, Issue No. 1138, 30 June 2013).

Article 4

For the purpose of regulating the distribution of certain goods referred to in the preceding Article, the Minister of Commerce and Industry may take the following measures:
1 – Establishing the ration card system and specifying the type and quantities of the goods included in it.
2 – Specifying the entities that distribute the goods included in the ration cards, setting out the rules and procedures to be followed in their distribution, and the submission of statements evidencing such distribution.
3 – Adding any goods to the card or deleting them from it.

Article 5

The ration card shall not be relied upon for any purpose other than that for which it is designated, and it may not be used for any other purpose.
No amendments may be made to the data entered in it, whether by deletion or addition, except through the competent official authority and in accordance with the procedures it specifies.

Article 6

Where necessary, one or more advisory committees may be formed by a resolution of the Minister of Commerce and Industry, to be competent to express an opinion on the goods, services and crafts intended to be priced and the fixing of their prices.
Such committees shall be chaired by the Minister or whomever he delegates, and shall have as members certain specialists from government entities and experienced persons working in the fields of commerce and industry.

* The first paragraph was replaced by Law No. 117 of 2013 (Kuwait Al-Youm, Issue No. 1138, 30 June 2013).

Article 7

The Minister of Commerce and Industry may provide financial subsidy for any goods whose selling price to the consumer he deems it necessary to reduce, and shall determine by his resolution the selling price of such goods, the method of their circulation, and the entities that shall undertake their distribution or sale.

Article 8

The following are prohibited in respect of goods that enjoy financial subsidy from the State:
1 – Their sale by the entities licensed to do so at a price higher than the price fixed for them.
2 – Their resale after purchase from the entities concerned with selling them, or offering them for sale, bartering them or exporting them abroad.

Article 9

Persons charged with the transport, storage, distribution or sale of goods covered by financial subsidy from the State, or those in charge of managing the entities charged therewith or working therein, are prohibited from disposing of such goods for purposes other than those designated for them, or dealing in them in a manner contrary to the provisions of the resolutions issued in their respect.
They are also prohibited from altering the truth in the statements, data and receipt or disbursement vouchers relating to them, or concealing or tampering with such documents, or including in them any data or conditions contrary to this Law or the resolutions issued in implementation of its provisions.

Article 10

All commercial and other establishments and shops – except those authorised to do so by the Ministry of Commerce and Industry – are prohibited from selling or distributing the goods referred to in Articles 3 and 7 of this Law.

Article 11

No commercial shop, service provider or craftsman, whether a public or private establishment, a company or an individual, may:
1- Conceal any goods or close his shop with the intention of refraining from selling.
2 – Refuse ordinary purchase orders for any goods, or refrain from providing a service or carrying out a craft, without a legitimate justification.
3- Impose on the purchaser of any goods the purchase of specific quantities of them or the purchase of other goods with them, without a legitimate justification.
4- Publish an advertisement on untrue specifications, data or prices of the goods, service or craft, or on his readiness to perform them, or give an undertaking or guarantee, without fulfilling the same.
5- Refrain from delivering an invoice to the consumer.
6- Charge the purchaser a price higher than the announced price of the goods, service or craft agreed upon.
7- Place more than one price on goods of the same type and specifications.
8- Refrain from taking back or exchanging the sold goods or refunding their paid value in the event that they do not conform to the invoice or to what was agreed, or where there are manufacturing defects not noticeable at the time of contracting, or which custom does not tolerate, that reduce their value or utility according to the purpose for which they are intended, within the period specified in accordance with the warranty terms announced by the trader or the period established by custom.
9- Conduct fictitious auctions on the prices of goods.
10- Refuse the purchaser’s request to examine and inspect the goods before taking delivery of them, in accordance with commercial custom.
11- Companies, establishments and shops practising the profession of photography and audio and video recording, and persons who perform work in such shops, shall deliver the photographs, their negatives and video tapes to their owners or whoever represents them; they are also prohibited from delivering them to anyone else, displaying them in public places, selling or circulating them inside or outside the country, keeping copies of them or making use of them in any way whatsoever.
12- If the possession or use of goods or the provision of a service or craft requires obtaining a prior licence to that effect from the competent authorities, the goods may not be sold or leased unless the consumer has actually obtained such licence.

* Replaced by Law No. 117 of 2013 (Kuwait Al-Youm, Issue No. 1138, 30 June 2013).

Article 12

The Minister of Commerce and Industry may require shops, companies and commercial establishments to place labels or tags stating the selling prices to the consumer of all or some goods and the charges for services and crafts.

* Replaced by Law No. 117 of 2013 (Kuwait Al-Youm, Issue No. 1138, 30 June 2013).

Article 12 bis

In the event that crimes provided for in this Law are committed, the Minister of Commerce and Industry may order the closure of the shop until the case is decided, or until the Public Prosecution or the court, after hearing the opinion of the Ministry of Commerce and Industry, permits its reopening at the request of the persons concerned.

* Added by Law No. 117 of 2013 (Kuwait Al-Youm, Issue No. 1138, 30 June 2013).

Article 13

Violation of the resolutions issued in implementation of Clause First (1, 2) of Article (1) of this Law shall be punishable by a fine of not less than one hundred dinars and not exceeding one thousand dinars.
Violation of the resolutions issued in implementation of Clause First (3, 4) of the said Article shall be punishable by imprisonment for a term of not less than one month and not exceeding two years and a fine of not less than five hundred dinars and not exceeding five thousand dinars, or either of these two penalties, together with confiscation of the seized goods and tools; and the court may order the confiscation of the means of transport that may have been used in committing the crime, without prejudice to the rights of bona fide third parties.
Violation of the resolutions issued in implementation of Clause Second of the same Article shall be punishable by imprisonment for a term of not less than one month and not exceeding six months and a fine of not less than fifty dinars and not exceeding one thousand dinars, or either of these two penalties; and violation of the resolutions issued in implementation of Clause Third of the same Article shall be punishable by imprisonment for a term of not less than three months and not exceeding three years and a fine of not less than five hundred dinars and not exceeding three thousand dinars, or either of these two penalties.
Without prejudice to the provisions of Article (73) of the Penal Code, Law No. 16 of 1960, the court may order the closure of the shop in which the crime was committed for a period not exceeding three months, or the revocation of the licences and the permanent closure of the shop, and the posting of the operative part of the judgment on the front of the shop and its publication in one or two daily newspapers at the violator’s expense.

* Replaced by Law No. 117 of 2013 (Kuwait Al-Youm, Issue No. 1138, 30 June 2013).

Article 14

Violation of Article 2 of this Law shall be punishable by imprisonment for a term of not less than three months and not exceeding three years and a fine of not less than two thousand dinars and not exceeding ten thousand dinars, or either of these two penalties. The court may order the temporary closure of the shop in which the crime was committed for a period of not less than six months, or the revocation of the licence and the permanent closure of the shop. A sign stating the operative part of the judgment ordering the closure of the shop shall be conspicuously posted on the door of the shop. In all cases, the court shall order the confiscation of the goods seized at the place where the crime was committed.
The Minister of Commerce and Industry may order the sale of the seized goods to the public, with the proceeds of the sale deposited with the court treasury until the case is decided.
The penalty shall be doubled in the event of recidivism within two years from the date of the judgment in the first crime.

Article 15

Violation of the resolutions implementing Article 3 of this Law, and violation of the provisions of Articles 5, 8 Clause 1, 10 and 11 of this Law, shall be punishable by imprisonment for a term not exceeding one year and a fine of not less than three hundred dinars and not exceeding three thousand dinars, or either of these two penalties. The court may order the confiscation of the seized goods, and may also order the closure of the shop in which the crime was committed for a period not exceeding six months, the posting of the operative part of the judgment on the front of the shop and its publication in two daily newspapers at the violator’s expense.
The Minister of Commerce and Industry may order the sale of the seized goods to the public at a reasonable price, with the proceeds of the sale deposited with the court treasury until the case is decided.

* Replaced by Law No. 117 of 2013 (Kuwait Al-Youm, Issue No. 1138, 30 June 2013). Its first paragraph had previously been replaced by Decree-Law No. 45 of 1980 (Kuwait Al-Youm, Issue No. 1308).

Article 16

Violation of Article (5), second paragraph, Article 8 Clause 2 and Article 12 of this Law shall be punishable by imprisonment for a term not exceeding one year and a fine of not less than fifty dinars and not exceeding three hundred dinars, or either of these two penalties.

* Replaced by Law No. 117 of 2013 (Kuwait Al-Youm, Issue No. 1138, 30 June 2013).

Article 17

Violation of the provision of Article 9 of this Law shall be punishable by imprisonment for a term of not less than three years and not exceeding ten years and a fine of not less than one thousand dinars and not exceeding ten thousand dinars, or either of these two penalties.

Article 17 bis

The penalties prescribed for the crimes provided for in this Law shall be doubled in the event of recidivism in committing the same crime, and the court shall be required to order the revocation of the licence and the permanent closure of the shop.

* Added by Law No. 117 of 2013 (Kuwait Al-Youm, Issue No. 1138, 30 June 2013).

Article 17 bis A

The court may order the violator of the provisions of this Law to return the amounts he obtained without right to their owners.

* Added by Law No. 117 of 2013 (Kuwait Al-Youm, Issue No. 1138, 30 June 2013).

Article 18

Employees delegated by the Minister of Commerce and Industry to monitor the implementation of this Law shall have the power to record the crimes committed in violation of its provisions and to draw up the necessary reports. They shall have the right to enter all places to record any violations of the provisions of this Law and draw up reports thereof, and in performing their duties they may seek the assistance of the police force.

Article 19

Without prejudice to the entitlement of any other fee collected by another entity, the fees to be collected on export permits for goods issued pursuant to this Law shall be determined by a resolution of the Minister of Commerce and Industry. He may also determine the fees to be collected for issuing the ration card referred to in Article 4, for requesting the addition of any data to it, or for issuing a replacement for a damaged or lost card.

Article 20

The Public Prosecution shall undertake the investigation, disposition and prosecution of all crimes arising from the application of the provisions of this Law.

Article 21

The Minister of Commerce and Industry shall issue the resolutions necessary for the implementation of this Law.
Until such resolutions are issued, the resolutions issued in implementation of the aforementioned Law No. 24 of 1967 shall remain in force insofar as they do not conflict with the provisions of this Law.

Article 22

The aforementioned Law No. 24 of 1967 is hereby repealed.

Article 23

The Ministers, each within his competence, shall implement this Law, which shall come into force from the date of its publication in the Official Gazette.

Issued on 14 March 1979.