Egypt’s Parliament approves draft law to toughen penalties for hoarding strategic goods

CAIRO – 26 February 2024: The Egyptian House of Representatives approved on Monday a draft law aimed at imposing stricter penalties, including hefty fines and prison terms, for hoarding commodities amidst the surging prices of essential goods in local markets.

The Cabinet submitted the draft law, which introduces amendments to the Consumer Protection Law 181/2018, with a focus on ensuring the continuous availability of strategic goods at fair prices.

According to the amendments to Article 71 of the law, individuals found hoarding commodities will face a fine ranging from LE 250,000 to 3 million or a fine equivalent to the value of the seized goods, whichever is higher.

These amendments raise the minimum and maximum limits of the fine from LE 100,000 to LE 2 million or a value equivalent to the seized goods, as per the previous version of the law.

The amendments also grant authorities the power to revoke the license of vendors who violate Article 8 of the law by hoarding strategic items.

The law maintains a minimum prison penalty of one year for violators.

Repeat offenders will face double the minimum and maximum limits of the fine and will be sentenced to imprisonment for a period of 2-5 years.

Under the amendments, the seized items will be confiscated, and the retailer will be temporarily closed for a maximum of six months.

The Consumer Protection Law also obliges producers, sellers, and distributors to inform the relevant supply and internal trade directorates about the type and quantities of stored items that are not intended for personal use.

Last December, Egypt's Prime Minister, Mostafa Madbouly, issued a decision designating mixed cooking oil, fava beans, rice, milk, sugar, pasta, and white cheese as strategic products under the Consumer Protection Law.

The decision aims to ensure market regulation and the availability of these essential commodities at regulated prices and discourage monopolistic practices.