Fines for Sales and Electronic Payment Violations in the Ministry of Commerce Municipal Penalties Schedule

On 3 Jumada Al Awwal 1448H, corresponding to 14 October 2026, Umm Al Qura Gazette published the Schedule of Penalties for Municipal Violations within the jurisdiction of the Ministry of Commerce. The schedule carries the year 1444H, corresponding to 2023, in its title and was published in the Regulations and Laws section of the Official Gazette. It sets out the fines for general sales violations and electronic payment violations, together with the correction period and the repeat offence rules for each violation.

In Brief

The schedule makes the licence holder responsible for every violation it lists, whether the business is a shop, an establishment or a bakery. Most fines range from SAR 1,000 down to SAR 200 depending on the classification of the municipality, with a correction period of fourteen days after a warning. The fine doubles on repetition for a number of violations, including exchange and return violations and electronic payment violations.

What Is the Scope of the Penalties Schedule and to Whom Does It Apply?

The footnote at the end of the schedule states that “this schedule shall apply in matters falling within the jurisdiction of the Ministry of Commerce”. The footnote adds that it applies without prejudice to the powers assigned to other authorities under the relevant laws, regulations and decisions. The schedule divides the violations listed under Item 8 on sales violations into two parts, general sales violations and electronic payment violations.

Who Bears Responsibility for a Violation?

In the column headed party responsible for the violation, the schedule names the licence holder in every item without exception. This suggests that the schedule directs the fine at the licence holder rather than at the worker who carried out the sale, and this should be verified in each case. The schedule also sets the unit on which each violation is counted. Some violations are counted per shop or establishment and others per item, per product or per violation.

What Are the Fines for General Sales Violations?

Item 8/1/1 covers refusal to sell and Item 8/1/2 covers refusal to issue an invoice. The fine for each is SAR 1,000 in the first category, then SAR 800, SAR 600 and SAR 400, down to SAR 200 in the fifth category. Item 8/1/5 imposes the same fine for failing to display prices on goods on display, and it requires the violation to be corrected.

Item 8/1/9 concerns possessing and displaying goods of unknown origin or goods carrying misleading information, and the schedule classifies this as a serious violation. No warning applies to it and no correction period is given, and the fine ranges from SAR 5,000 down to SAR 1,000. Item 8/1/10 sets a fine of SAR 200 per product for energy efficiency label violations in all categories. Item 8/1/11 imposes a fine ranging from SAR 5,000 down to SAR 1,000 for failing to open a dedicated bank account for the establishment, with a correction period of thirty days.

How Is the Fine for Exceeding Set Prices Calculated?

Item 8/1/3 deals with charging more than the prices set by decision of the Minister of Commerce for staple goods. Item 8/1/4 deals with charging more than the prices set by decision of the competent authority, and in both items the violation is counted per item. The schedule sets the fine as the difference between the set price and the selling price, provided that it does not exceed SAR 100,000 and is not less than SAR 5,000.

The published text does not make clear whether the difference is multiplied by the number of units sold or counted once per item. You should therefore consult a legal adviser before assessing the impact of this violation on your establishment.

What Violations Apply to Bakeries and Subsidised Flour?

Item 8/1/6 penalises waste of flour, dough or bread exceeding five percent of the quantity allocated to the establishment each week. The fine for this violation ranges from SAR 5,000 in the first category down to SAR 1,000 in the fifth category. Item 8/1/7 covers repackaging flour or using it for purposes other than those allocated in an establishment that relies on state subsidised flour. The fine for this violation starts at SAR 10,000 and goes down to SAR 2,000 depending on the classification of the municipality.

Item 8/1/8 requires automatic and semi automatic bakeries that receive subsidised flour to provide mafrood flatbread and samouli rolls. The fine for breaching it ranges from SAR 1,000 down to SAR 200 depending on the category, and the violation must be corrected.

What Are the Obligations on Exchanges, Returns and Advertising?

Item 8/1/12 sets a fine for any breach of sales regulations for which no penalty has been specified, and ten specific violations fall under it. The most significant include an establishment failing to comply with its exchange and return policy and a difference between the price of a product or service and the final selling price. It also covers using the phrase “goods sold are not returnable or exchangeable” or any similar wording on the premises or in documents, papers or advertisements.

The sub violations also include incorrect information about products, incorrect contact details and an invoice that does not include a brief description of the product or service. They further cover removing a closure sticker or a summons notice without the approval of the Ministry, and breaching the conditions of discounts and commercial competitions tied to the licence issued. They also cover offensive commercial use of the symbols and emblems of states and of religious and sectarian symbols and emblems. The fine for each ranges from SAR 1,000 down to SAR 200, doubles on repetition and requires the violation to be corrected.

What Are the Fines for Electronic Payment Violations?

Item 8/2/1 covers failing to provide working electronic payment methods that are ready for use, with a fine ranging from SAR 1,000 down to SAR 200 and a correction period of fourteen days. Item 8/2/3 penalises refusal to use electronic payment methods with a fine ranging from SAR 2,000 down to SAR 400. Its correction period is only seven days, which is the shortest in the schedule, and the fine doubles on repetition in both items. The published text does not show any item numbered 8/2/2 among the electronic payment violations.

What Are the Correction Periods and When Does the Fine Double?

Most items give a correction period of fourteen days after a warning, and the table below shows the main correction periods and repeat offence criteria. In some items the repeat offence column states that a repetition is counted fourteen days after the date the fine is imposed.

Violation	Correction period after warning	Repeat offence criterion
Refusal to sell	14 days	14 days after the date the fine is imposed
Waste of flour, dough or bread	14 days	14 days after the date the fine is imposed
Possessing and displaying goods of unknown origin or misleading goods	No correction period as it is a serious violation	14 days after the date the fine is imposed
Failing to open a dedicated bank account for the establishment	30 days	Not specified in the published text
Incorrect information about products	14 days	14 days after the date the fine is imposed
Breach of discount conditions	14 days	14 days after the date the fine is imposed
Failing to provide electronic payment methods	14 days	14 days after the date the fine is imposed
Refusal to use electronic payment methods	7 days	Not specified in the published text

The schedule provides for doubling the fine on repetition in Item 8/1/11, in Item 8/1/12 and its sub items, and in the electronic payment violations. For Items 8/1/1 to 8/1/10, the published text does not show any specific measure on repetition.

What You Should Do Now

Start by reviewing your shop signs, invoices and advertisements and remove any wording that prohibits returns or exchanges or implies that meaning. Make sure each invoice includes a brief description of the product or service and that the advertised price matches the final selling price.

Next, check your electronic payment devices regularly so they stay working and ready for use, and train staff not to refuse electronic payment from customers. Review the prices on all goods on display and the energy efficiency labels for every product that requires one.

If your establishment is a bakery that receives subsidised flour, monitor the waste rate every week and document that the flour is used for its allocated purpose. Make sure a dedicated bank account for the establishment has been opened if one does not yet exist.

When you receive a warning, record its date accurately, correct the violation before the correction period ends and keep evidence of the correction. Do not remove any closure sticker or summons notice posted at the entrance of the establishment before obtaining the approval of the Ministry.

Frequently Asked Questions

Does the employee or the shop owner pay the fine?

The schedule names the licence holder as responsible for every violation it lists without exception. The schedule does not state that any fine is imposed directly on an employee or worker.

Will I get a grace period before a fine is imposed?

A warning applies to most violations and is usually followed by a correction period of fourteen days. The exception is possessing and displaying goods of unknown origin or misleading goods, which is a serious violation with no warning and no correction period.

Why does the amount of the fine vary from one city to another?

The schedule divides the fine amounts into five categories according to the classification of municipalities from first to fifth. The published text does not state the classification of each municipality, so you need to check the category of the municipality where your shop is located.

Does the schedule apply to all commercial violations?

The schedule applies in matters falling within the jurisdiction of the Ministry of Commerce, as stated in its closing footnote. Its application is without prejudice to the powers assigned to other authorities under the relevant laws, regulations and decisions.

If your establishment needs to review its compliance with this schedule, the Governance and Compliance team at Perfect Solution Lawyers and Consultants can help you. You can also request a meeting with one of our lawyers to discuss your establishment’s position and the appropriate steps to take.

The official source is the schedule published in Umm Al Qura Gazette, which is available through this link.

This article is for general awareness only. It does not constitute legal advice and is no substitute for consulting a qualified lawyer about your situation.