Overselling and trade union violations

Overselling and trade union violations

They are the supply of goods or services at a price higher than the rates set by the official authorities on account or definitively and non-implementation of pricing rules and regulations and taking any other measures that lead to an increase in the price of goods or services for the buyer.

A) Expensive sales

Selling up to twenty thousand rials; First time a written warning and filing a case; The second time, a severe warning, obtaining a written commitment not to violate trade union violations and sealing the unit license with a seal (second violation); The third time, a fine from five thousand rials to five times the amount of overselling and sealing the single license with a seal (second violation); Fourth time, a fine from ten thousand Rials to ten times the amount of overselling, cutting off all or some government services from one to six months and sealing the single license with a seal (third violation); The fifth time, in addition to receiving a fine according to the fourth time, a temporary closure of one to six months and the installation of the fabric as an expensive seller, and the sixth time, closure and revocation of the unit license will be applied.
Expensive sales from the amount of more than twenty thousand rials to the amount of two hundred thousand rials; The first time a fine equal to the amount of the sale price and a written warning; the second time, a fine of one to two times the amount of the expensive carpet and sealing the unit license with a seal (first violation); Second violation; Fourth time, in addition to receiving a fine according to the third time, cutting off all or some government services from one to six months and sealing the single license with a seal (third offense); The fifth time, in addition to receiving a fine according to the third time, will be the temporary closure of the unit from one to six months and the installation of the fabric as a seller, and the sixth time will be the closure and revocation of the unit’s license.
Overselling from the amount of more than two hundred thousand to one million rials; The first time the fine is from one to two times the amount of the overselling, obtaining a written commitment not to violate (3) and sealing the unit license with a stamp (first violation); The second time is a fine of two to five times the amount of overselling, cutting off all or some government services from one to six months and sealing the unit license to seal (second violation) and the third time in addition to receiving a fine according to the second time, closing and revoking the unit license And business card cancellation will apply.
Over-selling more than one million rials; In these trade union violations, punishments include, for the first time, a fine of two to five times the amount of overselling, a written warning (4) and sealing the unit license with a seal (first violation); The second time, a fine of five to eight times the amount of overselling, cutting off all or some government services from one to six months and sealing the unit license with a seal (second violation); The third time in addition to receiving a fine according to the second time, temporary closure of the unit from one to six months, installing the fabric as an expensive seller and sealing the unit license with a seal (third violation) and the fourth time in addition to receiving a fine according to the second time, closing and revoking the license will be the unit and cancellation of the business card. Also, according to the note of Article 2 of the Government Penalties Law, in case of repeated violations, the application of penalties will be commensurate with the amount and degree of the violation.

B) Underselling and fraud

It is the supply of goods or services, less than the amount and quantity purchased in terms of quantity and quality, which is the basis for determining the rate of official references. Penalties for underselling and fraud, according to its amount and degree, will be exactly in accordance with the penalties for overselling, which is mentioned in Article 3 of the Law on Government Penalties. It should be noted that the punishment for underselling and fraud is the same as for overselling, but the legislature has defined these two types of offenses separately in the Law on Government Punishments.

Hoarding

It is the storage of goods mainly at the discretion of the competent authority and refuses to supply them with the intention of selling them at a high price or to the detriment of society after the government has declared the need for supply. Article 4 of the Law on Governmental Punishments, in addition to providing a definition of hoarding, also states the penalties intended for it in proportion to the degree of violation.

The prescribed punishment for committing trade union violations, in the first instance, the obligation to sell the goods and receiving a fine equal to 10% of the value of the goods; Secondly, the sale of goods by the government and the imposition of fines of 20 to 100 percent of the value of the goods; In the third place; Sale of goods by the government, taking fines from one to three times the value of goods, cutting off all or part of the quota and government services for up to six months and installing cloth in the unit as a monopolist. Introduction through mass media will be considered as hoarding, but if the keeping of the goods is informed by the competent authorities, it will not be subject to hoarding, he said: the spiritual element of hoarding is the intention to sell expensive or harm the society.

Other trade union violations in the Government Penalties Law include off-grid supply, non-insertion of prices, concealment and refusal to supply goods, non-issuance of invoices, Non-implementation of pricing and distribution criteria, non-fulfillment of importers’ obligations to receive foreign currency and government services, and also the lack of a license to obtain trade union units.

If you have any questions regarding the petition for overselling and trade union violations and related rulings, or if you need guidance in drafting its provisions, our experienced consultants and lawyers at the Asian Bar Association will answer your questions.