Advertisements affecting the image of a brand

Background

This article is based on the premise that a company circulated a picture/image of four major car brands operating in the UAE depicting one brand as inferior to the other brand in an image/picture reflecting their brand incompetency in the market. The said advertising is accessible online/publication in the UAE, therefore the laws of UAE apply.

Question of Laws

1. Does such advertisement violate any specific Laws in the UAE?

In the UAE, brand tarnishing is a form of unfair competition and is punishable under the following laws.

1. The UAE Federal Law no.18 of 1993 on Commercial Transactions Law, Section 3, Art 66 details about (Unfair Competition) intentional damage to the reputation of a brand or business, they can face penalties under the law.
2. The Federal law no.37 of 1992 on Trademarks (the “trademarks Law”) provides the legal framework for protecting trademarks by prohibiting a party from unlawful use of another party’s trademark and preventing unfair competition.
3. Federal Law no.4 of 2012 governs competition law principles for organizations in the UAE and includes provisions related to fair trade practices. The law prohibits any act or practice that is considered to be in violation of fair-trade principles anti-competitive behavior.
4. The National Media council is authorized under the advertisement standards to apply various penalties for non-compliant advertisement. Such penalties may not be isolated from any other penalties detailed under Federal law no. 15 “On Publishing House” of 1980 regarding printed matters and publications.
5. The UAE Law no.5 of 2012, Article 29 of the Cybercrime Law criminalizes the act of intentionally damaging the reputation of a natural or legal person through the use of information technology and shall be punished by imprisonment and a fine.

• What is the remedy available to the aggrieved brand?
• Violation of advertising activities may result in administrative, civil, and criminal liability. The supervisory authority may decide to impose sanctions on the advertiser in the form of a fine, removal or blocking of the advertisement, suspension, and revocation of the license. Trademark law & competition law violation can result in significant penalties, including fines and/or imprisonment.

We can support the affected brands

The affected brand can approach through the Firm to file a case based on all the regulatory laws above. The Firm can help you approach a dedicated authority in the UAE, the Federal Competition and Consumer Protection Authority (FCCPA) for violations claims.The Firm also specializes in providing consultation and litigation support in the area of unfair competition by traders, handling intellectual property violations for content, ideas, logo trade names, brand identification, manufacturing processes, trade secrets, music, art- all of the  key business assets. Feel free to get in touch with our team to avail our legal services.

Globalization has led to rapid developments in today’s fast-paced corporate world, among which an increasingly growing interest in arbitration.

Parties would rather resort to this alternative contract-based form of dispute resolution than going to Courts given its numerous advantages. These include but are not limited to its speed, privacy, economy, efficiency, and the flexibility when it comes to choosing the applicable laws, regulations and arbitrators. Thus explains why, more frequently than before, an arbitration clause is being included in contracts. Alternatively, parties may agree on signing a separate arbitration agreement in the event a dispute related to the implementation of their contract arises.

The final award rendered by the arbitral tribunal has furthermore a final and binding effect in the sense that it represents an enforceable decision to which the parties are obliged to comply.

 Within this context, the UAE legislator, wishing to position itselfas a regional leader in this field, established key arbitration institutions in its major cities (Abu Dhabi, Sharjah, Ras Al Khaimah, Dubai) in addition to the International Islamic Centre for Reconciliation and Arbitration.

The most significant however remains the Dubai International Arbitration Centre (DIAC) established in 2004, which has become the “largest and most preferred Alternative Dispute Resolution (ADR) entity in the Middle East”, with disputes amounting to 5.5 Billion AED in 2020 and covering a wide array of sectors, ranging from construction, Commerce, Real Estate, commercial and civil transactions, corporate governance, to IP, finance and banking to oil and gas.

The DIFC-LCIA Arbitration Centre and Emirates Maritime Arbitration Centre were both abolished pursuant to the Decree No. 34 of 2021 of the Ruler of Dubai and merged into the DIAC in an effort to concentrate institutional arbitration there.

As for Abu Dhabi, its Commercial Conciliation and Arbitration Centre (ADCCAC), established in 1993, represented the first center in the GCC to solve national and international commercial disputes. An initiative by the Abu Dhabi Chamber of Commerce and Industry, its mission is to build “an independent, effective and just structure for the mechanisms of conciliation and arbitration to serve the local and international business community”.

Both the DIAC and ADCCAC have their own rules and regulations that are regularly updated, taking into account the international standards and best practices.

How can we help you?

Khalifa Al Sada Advocates and Legal Consultants’ prides itself in its knowledgeable team of legal consultants, solicitors, paralegals, and arbitrators with over two decades ears of experience in various types of arbitration, whether it be institutional, ad hoc, national or international.  

Our offices in Dubai and Abu Dhabi provide arbitration and other Alternative Dispute Resolution (ADR) methods such as conciliation and mediation, before the DIAC, ICC, DIFC and ADCCAC. We are specialized and up-to-date with the latest trends in these subjects; we aim to get our clients the most beneficial and cost-effective outcome while taking into consideration the circumstances of their case.

Please reach out to us by email on contact@thelawyers.ae to discuss further.

Sources:

http://www.diac.ae/idias/resource/DIAC%20Flyer.pdf

https://u.ae/en/information-and-services/justice-safety-and-the-law/litigation-procedures/alternative-methods-to-settle-disputes-/key-arbitration-institutions

http://www.diac.ae/idias/services/diac/advantages/#:~:text=Hearings%20at%20the%20DIAC%20are,details%20of%20an%20arbitration%20case.&text=Arbitration%20is%20inexpensive%20in%20comparison%20to%20litigation

http://www.adccac.ae/English/AboutUs/Pages/OverView.aspx

Le mariage civil a récemment été instauré dans tous les Émirats arabes unis suite au décret-loi fédéral No. 41 du 3 octobre 2022. Ce dernier est actuellement dans l’attente de règlements d’application correspondants et entrera en vigueur en Février 2023.

Ce décret-loi explique en détail les procédures de formation d’un mariage civil et définit les principales exigences légales ainsi que les documents requis pour sa conclusion. Elle traite en outre des questions relatives au divorce, à la garde, aux testaments et aux tribunaux compétents; plus généralement, il réglemente les questions relatives au statut personnel des ressortissants non musulmans locaux et étrangers. Parmi les multiples objectifs de cette loi figurent en premier lieu la garantie d’un mode flexible de règlement des différends pour les questions similaires.

Abou Dhabi fut un pionnier parmi les Emirats par sa promulgation, l’année dernière, de la Loi n° 14 de 2021 relative au droit de la famille pour les expatriés non musulmans à Abu Dhabi, en vertu duquel le mariage civil y a été autorisé pour la première fois pour les non-musulmans.

L’équipe d’avocats compétents et expérimentés d’Khalifa Al Sada Advocates & Legal Consultants fournit tous les services légaux relatifs au statut personnel, qu’il s’agisse de mariage, testaments, divorces ou autres, en gérant pour votre compte toutes les formalités requises. Veuillez nous contacter par e-mail à contact@thelawyers.ae ou par téléphone au +971 50 310 9835 pour en savoir davantage.

The Federal Decretal Law No. 41 of 2022 established in October 2022 the civil marriage all across UAE. Its implementation is still under process.

The law sets out in detail the procedures for forming a civil marriage and defines the key legal requirements for its establishment in addition to the documents needed. It further deals with matters related to divorce, custody, wills and the related competent courts. It regulates more generally personal status matters for Non-Muslims nationals and foreigners. Among the multiple goals of this law are the guarantee of a flexible dispute resolution method for Personal Status matters related to non-Muslims nationals and foreigners.

Abu Dhabi was a pioneer among the Emirates when it promulgated last year Law No. 14 of 2021 regarding Family Law for Non-Muslim Expatriates in Abu Dhabi, pursuant to which civil marriage was allowed for the first time in Abu Dhabi for non-Muslims.

We at Khalifa Al Sada Advocates & Legal Consultants are ready to simplify the process for you and willing to save your precious time by handling the formalities on your behalf. Please reach out to us by email on contact@thelawyers.ae  or by phone on +971 50 310 9835 to discuss further.

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