(MENAFN- Khaleej Times) The Ministry of Economy has fined two trading firms, one operating in Dubai and the other in Ras Al Khaimah, after they were found manipulating customers by increasing prices through bogus offers.
The two companies allegedly increased the prices of the products before a sale was announced.The ministry has warned sales outlets and trading firms against exploiting customers through offers.
Dr Hashim Saeed Al Nueimi, Director of the Consumer Protection Department at the Ministry of Economy, said: "The department received complaints from consumers regarding manipulation in prices by a trading company of a famous brand name operating in garments, women's handbags and accessories in Dubai." After verifying the authenticity of the complaints, the company was slapped with a fine of Dh50,000, he added. Another company dealing with furniture in RAK was fined Dh100,000.
In the case of the first company, the ministry received the complaint over the 'Consumer's Line' initiative. The customer claimed that he/she had bought a handbag for Dh130 from the sales outlet of a company belonging to a famous brand. Two weeks later, the company put the same bag for display as part of summer sales for Dh189. The complainant claimed that the price of the handbag before the sale was quoted as Dh269.
The ministry ordered the company to rectify their prices and re-offer the products at the price sold before the sale. The furniture company was fined Dh100,000 because it had rigged the furniture prices and offered the items for a price higher than its original prices.
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