MCI Clarifies the Situation about Closing some of " Extra" Shops Because of Making Misleading Sales to the Consumers

23 Nov 2014
MCI would like to explain the reasons for closing some shops of the United Electronics Company "Extra", after the Ministry had received several complaints from consumers that "Extra" organized Sale Festival at high exaggerated rates of discount and that they had already bought these goods at the same price before the start of the Sale Festival . 

Accordingly, MCI has verified the complaints and stands on the company's branches in different cities of the kingdom to view the sale, and the following has been found out: 

1-That most of the items have been overstated in the discount rates to the consumer, where they put high price before the sale, while the company sold the item at a lower price in the three months preceding the sale festival, after verification of the sales invoices from the accounting system of the company, where it had been turned out that the price had been raised   to a higher level before a short time of the sale to amplify the discount rates and to delude the consumers with false sale.

2-The company had hidden the information of most of the goods in the sale license, where the company had applied for 208 items only, and submitted the bills for review, and then exploited the license to make the sale on 2,400 items without disclosing the bills to the Ministry to verify that the sale is true.

3-There is more than one price tag on some goods at different prices, and there are untrue discount tags. 

4-The company offered, through its promotion, discounts on goods, where the price after the sale is higher than the price before the sale in the shop, as well as in the e-mail, where the price appears higher after the sale than that before the sale.  

5-Offering goods without price tags at more than one branch.

Accordingly, the officers of controlling the commercial fraud at MCI, had detected such violations and the company was given a notice regarding that, with the closure of two branches, and the company was given a corrective chance to avoid that during the next day, but the control rounds carried by the Ministry`s inspectors resulted in the detection of violations in other six branches in different parts of Kingdom, which necessitated the closure of such shops. Therefore, the company is requested to provide the Ministry with the correct and the actual discount lists as soon as possible. MCI is following up the company's commitment to Commercial Fraud Combating System and the Implementing Regulations for making sales as per the official licenses granted to it, and the completion of the statutory procedures regarding such violations.
Last Modified 26 Dec 2018