By Khalifa Al Sada Advocates & Legal Consultants 4 min read
First published in 2023. Several of the laws cited then have since been replaced; the references below were updated in September 2026.
Background
This article is based on the premise that a company circulated a picture of four major car brands operating in the UAE, depicting one brand as inferior to another and suggesting that it was not competitive in the market. The advertisement was accessible online and published in the UAE, so UAE law applies.
Does such an advertisement violate UAE law?
In the UAE, tarnishing a brand is a form of unfair competition and is dealt with under several laws:
- The Commercial Transactions Law (Federal Decree-Law No. 50 of 2022, which replaced Federal Law No. 18 of 1993) prohibits unfair competition, including acts intended to damage the reputation of a competitor's business or products. A trader who intentionally harms a brand's reputation faces liability under the law.
- The Trademarks Law (Federal Decree-Law No. 36 of 2021, which replaced Federal Law No. 37 of 1992) protects registered marks, prohibits the unlawful use of another party's mark and gives the owner remedies against use that damages the mark's distinctive character or reputation.
- The Competition Law (Federal Decree-Law No. 36 of 2023, which replaced Federal Law No. 4 of 2012) sets out the principles of fair trade and prohibits practices that violate them.
- The Media Regulation Law (Federal Decree-Law No. 55 of 2023) and the advertising standards of the UAE Media Council allow the regulator to impose penalties for non-compliant advertising, including comparative advertising that disparages a competitor.
- The Cybercrime Law (Federal Decree-Law No. 34 of 2021, which replaced Federal Law No. 5 of 2012) criminalises the intentional damaging of the reputation of a natural or legal person through information technology, with imprisonment and a fine.
What remedy does the aggrieved brand have?
A violation of the advertising rules can lead to administrative, civil and criminal liability. The supervisory authority may impose sanctions on the advertiser in the form of a fine, removal or blocking of the advertisement, suspension or revocation of the licence. Breaches of the trademark and competition laws can result in significant penalties, including fines and, in some cases, imprisonment, and the affected brand can claim compensation for the damage to its reputation and sales.
How we can support affected brands
The affected brand can act through the firm to file a case based on the laws above. We can help the brand approach the competent authorities, including the Ministry of Economy, which supervises competition and consumer protection, and the Media Council for advertising complaints, and we can file the civil claim and the criminal complaint where the facts justify them.
The firm also provides consultation and litigation support in the wider field of unfair competition by traders, and handles intellectual property violations concerning content, ideas, logos, trade names, brand identity, manufacturing processes, trade secrets, music and art: all the key assets of a business. Contact our team to discuss your case.
About the author
Khalifa Al Sada Advocates & Legal Consultants
Written by the lawyers of Khalifa Al Sada Advocates & Legal Consultants.