In cooperation with the Ministry of Municipal and Rural Affairs, MCI inspection teams have carried out (24,743) inspection tours within the joint campaign to monitor and control the violating signboards of the shops. The inspection campaign included: restaurants, retail of foodstuffs, electrical appliances, electronics, building materials, pharmacies, and other activities.
This campaign aims to enhance consumer confidence and to protect him against misleading and fake signboards, and to ensure the absence of manipulation in using misleading trademarks and commercial names, also to monitor and control any misuse of other similar trade names and to stop any circumventions in the design of signboards.
The two Ministries have organized a joint working group of specialists to control the violations related to the signboards. Notably, the trade name must be clear to the consumer and it should be identical to what is registered in the commercial registration or in the registered trademark. The signboards must not bear any misleading methods, such as minimizing some words in the trade name and enlarging others to delude and mislead the consumer that the shop belongs to a well-known store chain. Also unauthorized or not owned trademark should not be placed in the signboard.
This joint inspection campaign comes after the end of the six-month period granted by the two Ministries to the commercial establishments to correct and modify the signboards in accordance with the established regulations. Any violation will lead to statutory penalties in accordance with the municipality fine and penalty list, also according to the Trade Name System, as well as the Trademark System, where the Trade Name System stipulates imposing a fine on the violators of up to SR 50 thousand riyals, with the possibility of doubling the penalty in case of repeating the violation
The Ministry of Commerce and Investment and the Ministry of Municipal and Rural Affairs affirm their keenness to enhance joint efforts to provide a stimulating commercial and investment environment, and to provide the necessary protection to the investors and consumers in a manner that promotes sustainable development.