Could the discount you are about to announce cost your store a fine?
📢 The sales season is one of the strongest tools you have for winning customers and lifting sales — and the same offer can turn into a liability. Announcing a discount without an official discount license exposes you to fines and damages the trust your customers place in your prices. In this guide, you'll learn what the electronic discounts system is, the rules that govern a sale, how to issue your license, and what a violation actually looks like.
Before you announce any discount, you must hold a discount license issued through the Ministry of Commerce's electronic discounts system. The license is mandatory for every commercial establishment and online store, it has to be displayed with its barcode, and running a sale without one is a violation.
📌 Article overview
- What the electronic discounts system is
- Why you must license your discounts
- The rules that govern a sale
- How to issue your discount license
- Real cases, and what they cost
- Frequently asked questions
What is the electronic discounts system?
The electronic discounts system is a service launched by the Ministry of Commerce that lets businesses issue official discount permits electronically. It exists to organize the market, prevent commercial fraud, and protect consumer rights.
✅ Why you must license your discounts
- It is mandatory for every commercial establishment and every online store.
- It protects you from fines and violations that can go as far as suspending your store or damaging its reputation.
- It strengthens your credibility with customers and gives them confidence in the prices you advertise.
✅ The rules that govern a sale
1. Obtain the license in advance, before you announce any discount.
2. Display the license prominently in your shop or on your website, with the barcode available so anyone can verify it.
3. Apply real discounts. No price manipulation and no fake offers.
4. State the discount range precisely (from – to).
5. Show the price before and after the discount on every product.
6. Set out your exchange and return policy for the offer period.
7. Honor the manufacturers' warranties on the products included in the sale.
8. Leave consumers free to choose products without forcing them into the promotional offer.
9. Follow the electronic advertising rules, so nothing you publish is misleading.
📌 How to issue your discount license
Follow the steps set out on the official service page from the Ministry of Commerce.
🔸 You can apply ahead of any sales season, in a few quick online steps.
🔸 Keep the barcode you receive once the license is issued, and put it on your store page for the duration of the sale.
🛒 Real cases, and what they cost
🔸 An unlicensed discount is a straight violation
One store announced 50% off ahead of Eid without obtaining a license. The next day it received a violation notice and a substantial fine.
🔸 A misleading discount rate doubles the problem
An online store advertised a cut from SAR 300 to SAR 150, when the original price had never been higher than SAR 180. The violation was picked up immediately and treated as price manipulation.
🔸 A valid, visible license buys protection and trust
A merchant obtained the license and placed it on the sale page with a clear barcode. The result: strong sales, customer confidence, and no legal questions to answer.
🎯 What this means for online stores
The Ministry of Commerce requires every online store to issue the electronic discount license before the sale starts, in order to avoid penalties and fines.
You can issue the license through the official service platform.
📝 Important notes
- The electronic discounts system is run by the Ministry of Commerce in Saudi Arabia and applies to businesses operating there. If you sell into another market, check the local rules on discount advertising before you launch.
- The license must be in hand before the announcement, not after the sale has started.
- The discount you advertise has to be measured against the price you were genuinely selling at.
❓ Frequently asked questions
Does an online store need a discount license, or is it only for physical shops?
Both. The license is mandatory for every commercial establishment and every online store.
When should I apply?
Before you announce anything. Apply ahead of the sales season, since the license has to be in place before the first offer goes live.
What do I do with the barcode?
Keep it, and display it on your store page throughout the sale. It is what lets customers and inspectors verify that your discount is licensed.
What counts as a misleading discount?
Advertising a reduction from a price you were never actually selling at. Announcing a cut from SAR 300 to SAR 150 when the product had never sold above SAR 180 is treated as price manipulation.
What happens if I run a sale without a license?
It is a direct violation. Stores have received a violation notice and a substantial fine within a day of launching, and penalties can extend to suspending the store and damaging its reputation.
📌 Complying with the electronic discounts system means more trust and higher sales.
Keep your offers clear, compliant, and licensed, and you earn your customers' confidence through plain transparency.
⚠️ Do not launch an offer before the discount license is issued. Save your store the fines and start your campaign from a position of strength.