Dubai retailers
face an up to AED10,000 fine if caught charging fees on credit card purchases
during Ramadan, the emirate’s consumer protection agency warned Sunday.
Stores were
told in June to stop imposing surcharges on credit card transactions as
commission and will come under increased scrutiny during the holy month, when
retail sales typically soar.
Credit card fees are sprung on the consumer at the point of
payment and are purportedly used to cover the cost to the retailer of
processing the transaction.
Spot checks
are scheduled for supermarkets Carrefour and Union Cooperative Society as early
as next week, the consumer protection arm of Dubai’s Department of Economic
Development said.
Deputy CEO Mohammed Lootah, said the campaign was not an
attempt to “make life difficult for retailers… [or] favour consumers”, but to ensure
a healthy trading environment in Ramadan.
The monitoring campaign is the latest in a number of
measures aimed at protecting consumers in the UAE from rising global food
prices, amid a wave of political instability in the Arab world.
The Gulf state said in June it would fix the price of 400
basic food and household items across 70 retail outlets in the Gulf state. The
scheme was backed by Carrefour, Lulu, and a number of cooperative societies
that together hold 75 percent of the UAE’s retail market.
In the run up to Ramadan – which traditionally spurs a jump
in food sales – stores have also been asked to slash the costs of basic
commodities by 20-50 percent.
Retailers face legal action and fines of up to AED20,000 if
they raise the price of essential items fixed by the economy ministry during
the Holy month.
According to the World Bank, staple foodstuffs have seen the
largest price increases this year since the 2007 food crisis. Key increases
this year compared to 2010 include maize (up 74 percent), wheat (up 69
percent), soybeans (36 percent) and sugar (21 percent).
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