Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum on Sunday issued a new draft law to create a committee to combat commercial fraud.
He said the UAE will continue to develop legislation and laws to protect the community and markets from various types of crimes and fraud, in accordance with the best systems and international standards.
The committee will study reports of fraud and deceit referred to it by competent authorities and take the necessary decisions, news agency WAM reported.
The new draft law, which was endorsed during a Cabinet meeting, also seeks to protect consumers, WAM said.
Sheikh Mohammed, also the UAE's vice president and prime minister, said the legal move was "in accordance with the directives of the government to build transparent and professional markets in which sellers and consumers enjoy full rights and duties".
"The consumer protection consolidates the principle of transparency and impartiality in the business sector," he said.
The general provisions of the new federal bill include several articles covering all types of commercial fraud, such as the sale, display or possession of counterfeit goods in addition to provisions related to the prohibition of misleading advertisements.
The bill also tightens punishments for breaches of regulations relating to food, drugs and medicines, WAM said without giving further details.
It also lays down a mechanism to deal with counterfeit or rotten goods. The bill obliges importers to return these goods to their source of origin within a specified period, or to destroy them.