Ajman shuts 5 shops, fines 52 for bogus discounts

ajman — The Ajman Department of Economic Development (Aded) has shut down five shops and fined 52 othersfor promoting massive discounts that turned out to be a sham.

All of them were caught in the last nine months as the Aded intensified its crackdown on commercial fraud, a top official of the department said. Sixty-two outlets were also issued warning memos, giving them a chance to correct their ways.

The stores, including supermarkets, were found to be flashing bogus discounts of up to 80 per cent to lure in customers and make an easy profit.

Aside from fake promotions, Aded has also penalised retail outlets that have increased their prices above the rates suggested by the department’s consumer protection section, which has recently stabilised prices of nearly 3,500 food items in almost 480 outlets. “The section shut down one outlet, fined 46, and issued a warning to 83 for increasing their prices,” the official said.

Inspectors vow to continue hunting down such frauds with the help of consumers who are encouraged to report any violation.

He said that as soon as Aded receives a complaint on price manipulation or false discounts, inspectors immediately rush to the site, investigate, and if violations are found, penalties are imposed.

Ajman’s economic department has been strictly enforcing the rules on discount offers and promotions as stated in a 1994 local order. Based on this order, commercial outlets are required to first obtain Aded’s permission before rolling out a promotion, the official said.

Traders are not allowed to post any ads or banners for the offers, inside or outside their premises, without the Aded approval and other necessary licences; violators will be subject to hefty fines, he added.