Law No. 23 of 2010 regarding Commercial Activity 

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Book Eleven Competition and Protection of the Consumer 

Section One Competition 

Chapter One General Provisions 

Article 1282 

Objectives 

This Section treats the definition or provisions applied to freedom of prices, putting an end to the monopoly, organisation of commercial competition and definition of the rules of their protection for development of the economic activity and ensuring transparency and honesty in transactions and respecting the rules of commercial sincerity.

Article 1283 

Scope of Application 

The provisions of this Section apply to all the commercial activities which shall be practiced by natural or moral persons. Its provisions shall apply also to any economic activity to be executed outside Great Jamahiriya and shall result in effects inside Great Jamahiriya. 

Article 1284 

Fixing of Prices 

The prices of goods and services shall be fixed according to competition principles with exception of the following: 

Prices of goods and services which shall be fixed by a resolution of the Competent Secretary.

Prices of goods and services which shall be fixed by a resolution of the General Peopleís Committee in a temporary manner in order to face an emergency case or a natural disaster, provided that these measures shall be revised within a period not exceeding (6) six months for the beginning of their application.

In the both previous cases the resolutions issued for fixing the prices of those goods and services should include the rules related to them and determination of the penalties established for their violation. 

Chapter Two Illegal Competition 

Article 1285 

Acts and Practices in Violation of Competition 

In compliance with provision of the previous article, all the explicit and implicit acts and agreements aiming at prejudicing the competition principles shall be prohibited under provisions of this Law. The market rules shall be applied or suspended or influenced particularly: 

Agreements or works which aim at or lead to fixation of goods and services prices. Or representing a prejudice to the rules of supply and demand either by increasing or decreasing the prices. 

Prevention or hindrance of practicing the commercial activity within the market to put an end to the entry or exit of other practitioners. 

Sharing the markets or sources of goods and services or clients on geographical, or quantitative or seasonal basis. 

Rejection of sale and purchase or restricting thereof by additional restrictions or suspending thereof on conditions not related to goods and services object of dealing. 

Connivance in submission of offers, tenders, bids and public auctions or in drawing up conditions of unjustified acceptance. 

Exclusivity in concession contracts and commercial agency except in exceptional cases which shall be authorized by the Competent Secretary following the opinion of the competition council.

Dumping by selling the imported goods (similar to goods produced locally or having the same specifications), at a price less than their sale price on national market of the exporting country or at a price less than the actual cost in such a manner that causing damage or threatening therewith or remarkably hindering production of such goods on local market. 

The agreements which are to be concluded in violation of provisions of this section shall be considered null and void. 

Article 1286 

Illegal Competition in Intellectual Property Field 

The following competition acts are illegal: 

1. Falsification and imitation of the registered trademarks 
2. Infringement upon the trade name and motto registered in the Commercial Register. 
3. Utilization of others achievements and procuring the undisclosed information by illegal ways such as espionage, theft and fraud. 
4. Non-respecting the rules organizing the registered drawings and industrial samples. 
5. Infringement on authorís rights, adjacent rights, sound compilations and broadcasting programs as well as infringement upon information systems (electronic) and piracy, attempt to breakthrough their coding system and attempt to inflict damage to the information programs (electronic). 

Article 1287 

Control and Domination over the Market 

The Commercial project shall be considered on control or domination position when taking exclusive possession of the relative market share exceeding the percentage to be fixed by a resolution of the Competent Secretary, provided that such percentage shall not exceed, in all the cases, (30%) thirty percent of that market. 

The control may be measured through the following bases:

Article 1288 

Prohibition of Control Aspects 

All the practitioners of the commercial activities who are in positions allowing them to influence or having influence on the market activity and control over the abuse of those positions to perform acts for prejudicing or suspending or preventing the competition particularly the following acts: 

Fixing the prices of sale and purchase of the goods and services in a manner contrary to the market rules and leading to violation of the competition principles. 

Abstention from selling or purchasing or concealing or monopolizing the goods or services or abstention from trading therein inasmuch as creating untrue abundance or shortage therein in view of manipulation and influence on prices. 

Rejection of dealing with one of the commercial activity practitioners or imposition of discriminative conditions of unequal performance. 

Utilization of the economic subordination position for imposing dealing conditions which are in their nature to suspend the competition principles. 

Interference in any form whatsoever to suspend the process of production, manufacturing, development and distribution of goods and service or to suspend their entry to the market.

Article 1289 

Economic Blocs 

All the practitioners of the commercial activities are prohibited from constitution of blocs which shall lead to influencing and controlling the market activity inasmuch as to exceed the percentage to the fixed by the resolution of the Competent Secretary, provided that such percentage shall not exceed, in all the cases, (30%) thirty percent. They shall be prohibited also from sharing the markets or the clients or sources of the raw materials or supplies on bases contrary to the competition principles, with exception of the following acts: 

1. Acts contributing to creation of technical or economic progress and leading to reduction of costs or improvement of production and distribution conditions in a manner which shall result in realization of the public interest and bring about a fair interest to consumers. 
2. Acts which are in their nature to allow for improvement of the competitive position to some small units with engage in an economic activity. 

In all the cases, for obtaining an exception, it is stipulated than an application shall be submitted to the Competent Secretary for consideration. The submission of the application and the method of its consideration shall be shown by the regulation of procedures. 

Article 1290 

Commercial Concentration Operation 

The competent Secretary shall present to the Competition Council each plan of concentration of the commercial projects that in their nature to prejudice the competition, particularly creation or enhancement of a position that controlling or dominating the market. 

Article 1291 

Sale at Less than the Cost Price 

All the practitioners of the economic activities shall be prohibited from sale of goods and services at prices less than their cost with exception of: 

Goods which are subject to damage or threatened by easy deterioration. Seasonal goods and services.

Chapter Three The Competition Council 

Article 1292 

Establishment of the Council 

Under this Law, a Council enjoying legal personality and independent financial obligation to be called (the Competition Council) shall be established and shall operate under supervision of the General Peopleís Committee. 

Article 1293 

Constitution of the Council 

The Council shall be composed of: 

1. The Chairman and his deputy shall work full time for (4) four years renewable for one time. 
2. The Council includes also (6) six members experience in the legal or economic fields, provided that one of them shall be at least advisor in the Court of appeal and shall be nominated for nonrenewable (3) three years. 

The Council includes also three members engaging in production activity or distribution or provision of services to be nominated by the general union of the Chambers of Commerce, Industry, Agriculture and Trades 

The Chairman, his deputy and members of the Council and their financial remunerations shall be fixed by a resolution to be issued by the General Peopleís Committee upon proposal of the competent Secretary.

Article 1294 

Powers of the Council 

The Council shall be concerned with following: 

Article 1295 

Necessity of Consultation 

The Competition Council shall be necessarily consulted by the General Peopleís Committee in any bill or organizational provision related to creation of a new system or modification of an existing system aiming at: 

Article 1296 

Implementation of the Council Resolutions 

The Competent Secretary shall take the action necessary for execution of resolutions of the Competition Council issued against the violators particularly the orders directed for putting an end to the practices violating the competition and the temporary closing at the shops object of the committed violation. 

Article 1297 

Immunity 

The cases other than flagrante delicto the lawsuit may not be brought against the Chairman, his deputy and members of the Council or investigation with them in connection with their acts in the Council except after permission therefor of the General Peopleís Committee. 

Article 1298 

Cases of Dismissal 

The Chairman or his deputy or members of the Council shall not be dismissed during their tenure except in the following cases 

1. Permanent disability to perform their duties.
2. Repeated negligence in performing their functions. 
3. Abuse of their positions. 
4. Issuance of a judgment against them in a crime or felony violating the honour or faith or security. 
5. Issuance of a judgment of bankruptcy against them. 

Article 1299 

Authorities which may bring a Complaint to the Council 

All the practitioners of the commercial activities may resort to the Council for complaining in respect of acts related to prejudice to competition principles. 

The under-mentioned authorities may notify also of the prohibited practices under provisions of this Law and bringing of complaints in their respect. 

1. The Competent Secretary upon a report recommending thereof by the concerned department after having conducted the primary investigations confirming commitment of one of the acts or practices violating the competition principles. 
2. Chambers of Commerce, Industry, Agriculture and their General Union. 
3. Consumerís protection societies which engage in their activity according to the applicable legislations. 
4. Professional societies, associations, syndicates, occupational and specific unions. 
5. Any group of at least (25) twenty-five consumers 

Internal System of the Council 

 The Council shall have the sufficient number of staff for performing its duties. The Chairman of the Council shall assume their nomination and shall have the authority of the managing director over them. 

 The organizational structure of the Council shall be formed by a resolution to be issued by the General Peopleís Committee upon proposal of the Council.

 The Council shall assume drawing up of its internal system and organization of progress of its jobs. 

Chapter Four Penalties 

Article 1301 

Penalties Resulting from Acts and Practices Violating the Competition 

The legal person who commits one of the practices provided for in Article (1285) of this law shall be amerced by a fine not less than (LD 1,000) one thousand Libyan Dinars and not more than (LD 5,000) five thousand Libyan Dinars. 

The natural persons who have taken the prohibited resolutions may be judged by imprisonment for a period not less than (6) six months. 

Article 1302 

Penalties Resulting from Control Prohibition 

The legal person who commits one of the practices provided for in Article (1288) of this Law shall be amerced by a fine not less than (LD 5,000) one thousand Libyan Dinars and not more than (LD 15,000) five thousand Libyan Dinars. 

The natural persons who have taken prohibited resolutions may be judged by imprisonment for a period not exceeding one year. 

Article 1303 

Penalties Resulting from Economic Blocs 

Anyone who constituted a prohibited block or involved therein according to provisions of Article (1289) shall be amerced by a fine not exceeding (3%) three percent of the size of the annual dealing of the concerned projects. The natural persons who have taken prohibited resolutions may be judged by imprisonment for a period not less than one year.

Article 1304 

Suspension or Withdrawal of Licenses 

In addition to the penalties set out in the previous Article ñ The judgment may be passed by suspension of licenses of practicing the commercial activity for a period not exceeding (6) six months and in case of recidivism. 

Chapter Five Final Provisions 

Article 1305 

Capacity of the Judicial Officers 

The Officer who their nomination shall be by a resolution to be issued by the General Peopleís Committee shall have the capacity of the judicial officers to verify the violations provided for in this section. 

Article 1306 

Confidentiality of Documents 

The papers, documents and instruments to be seen during the investigation into the violation shall be considered confidential and their contents should not be disclosed to any authority or used for any other purposes contrary to the applicable legislations. 

Article 1307 

Executive Regulation 

The provisions organizing the competition shall be shown by a regulation provided that they shall contain the following: 

1. Procedures for bringing the complaints and submission of notifications about the practices violating the provisions of this section. 
2. Procedures of investigation and presentation of recommendations on the investigated violations. 
3. Procedures of appeal and complaint against resolutions of the Council.

Section Two Protection of Consumer 

Chapter One General Provisions 

Article 1308 

Objections 

The provisions set out in this section shall show the protection of the consumer rights and guarantee the honesty of the economic transactions, products safety, verification of their conformity with the approved standards and specifications. 

Article 1309 

Consumer Rights 

The rights of the consumer shall include everything related to his total interests and desires during his endeavour to satisfy his personal needs of goods and services, particularly the following: 

1. Health and safety on his usual use of goods and services. 
2. Procurement of complete and correct information and data about the products and services. 
3. Free voting on goods and services satisfying the conditions of quality and conformity with approved specifications. 
4. Procurement of any document confirming his purchase of any commodity or receiving any service showing therein the value and date of purchase, specifications, number and quantity of the commodity which has been purchased or the type and value of the service which has been received. 
5. Direct litigation or by consumer protection societies to protect his rights and compensation for damages which may fall on him due to using the products and services. 
6. Constitutions and joining the consumer protection societies.
7. Replacement or repair or recover the price of the goods when violating the approved specifications. 
8. Recover the fees paid for procuring the service in case of non-conformity with applicable specifications on use. 
9. His right to availability of announcement of the prices of the goods in a prominent place and with transparency. 
10. Providing him with advice and informing him of the cost of repair and maintenance of the goods prior to repairing process. 
11. Informing him of the goods prices and the services recompense. 
12. Goods distribution and flow of goods to him in a natural manner without impediments or obstacles.

Chapter Two Safety of Products 

Article 1310 

Abidance by Specifications and Standards 

Any natural or legal person manufactures, or produces or distributes or imports or exports a product or involves in its production or manufacture or sale or supply or distribution to his credit or to the credit or third parties should abide by its production, import, transport and supply according to the approved national and international specifications and standards, and shall abide by conducting the necessary analyses in respect of goods and services at the competent Control Authorities and their approval before marketing. 

Article 1311 

Prohibition of Circulation Some Products 

Without prejudice to the conditions of safety and health provide for in Articles (1310 & 1316) of this Section, Circulation of Some Products may be prohibited or submitted to special conditions for their distribution or marketing either for considerations related to the public order or due to danger on application.

The prohibited goods shall be determined by a resolution to be issued by the competent Secretary stating the reasons inasmuch as not contradict with commercial competition conditions. 

Article 1312 

The Cross or the Forthcoming Danger 

In case of occurrence of a gross of forthcoming danger the competent Secretary shall temporarily suspend import or export or supply of a commodity on the market free of charge or against a fee or withdraw or destroy it if the destruction is the only means to prevent the danger. He may issue also warnings or attentions or precautions in respect of the goods. In case of suspicion about existence of a danger from consumption or use of goods offered on the market he may obligate the concerned parties to submit the goods for examination and testing at a competent authority. 

Article 1313 

Abidance by Awareness 

In cases where the use of a commodity may result in damage to health and safety of the consumer, the producer shall undertake to show the proper way of using the product, method of preventing the possible damages and the method of their remedy in case of their occurrence. 

Article 1314 

Defects of the Commodity or the Service 

If it is appeared that the commodity or the service which has been offered under circulation contains one defect or more which in its nature to harm the safety or the health of the consumer or forms a danger to him, the distributor should take the following actions immediately: 

1. Notify the competent authorities and inform the public by the various means of information of such defects and warning them of the risks which shall result therefrom. 
2. Withdraw the commodity from the market. 
3. Recover the sold or leased commodity and returning the paid price. Disposal of this commodity in a safe way not harmful to the environment.

Article 1315 

Final Responsibility of the Professional 

The distributor of the goods or services shall be responsible for the damage to be fallen to the consumer due to their use even if the identification of his supplier is confirmed. 

In all the cases, no agreement shall be made on release or limitation of the distributor responsibility in this regard. 

Chapter Three Honesty of the Economic Transactions and Prevention of Deception 

Article 1316 

Definition of fraud

Any demonstration or attempt to demonstrate a commodity or a service in a manner other than its true appearance shall be considered as a deception either by incorporation of the deception in the product itself or by manufacturing or possession or use of tools or machines or methods contributing to deception in order to generate a return or financial gain. 

The following shall be considered as acts of deception: 

1. Manufacture or production or supply or circulation or transport or import or possession of a commodity for trading in with knowledge that it is deceived or damaged or toxic or invalid or violating the approved standard specifications. 
2. Use of unapproved scales or dry measures or measures or tools or machines defrauding the goods and services. 
3. Delivery or use of a quality certificate with intention of deception. 
4. Description of goods or services or misleading in their description or declaration or offering them in a manner involving false or deceptive data.
5. Deceiving the consumer in making the goods and services available on the contractual dates and in modes of sale and payment. 
6. Deception in the amount of the goods either in weight or dry measure or measure or number or capacity or caliber or use of methods or means which in their nature to make thereof incorrect. 
7. Deception in the source of the goods or method of their manufacture or preparation. 
8. Deception in the essence of the goods and series or their nature or nationality or types or elements or their essential specification. 

Article 1317 

False Propaganda 

Any declaration of goods or services including untrue allegations or insignias or which in their nature to provide an error shall be prevented especially when related to the below elements: 

1. Existence of the goods or their nature or composition or essential specifications or quantity of their active elements or type or source or quantity or method of their manufacture or date. 
2. Specifications, price and conditions of sale of the goods and service object of declaration. 
3. Conditions of use and the expected results. 
4. Methods and ways of sale of the goods and services. 
5. Identification or capacity or competency of the declarer. 

Chapter Four Consumerís Information 

Article 1318 

Extent of Abidance by Information 

The distributor shall abide by insertion in the goods and services, the information which define their nature, type, essential specifications,composition of their elements, precaution ought to be taken on their use, source, origin, date of manufacture and the maximum date of consumption or use, method of use, name and address of the producer and their price shall be declared in a prominent place during their presentation. 

The information shall be written in Arabic language. The same may be written in more than one language, provided that the Arabic language shall be one of them in a manner which their removal shall become difficult. 

Article 1319 

Information of Right to Recourse 

The distributor must inform the consumer of his right to recourse within (10) ten days from the date of conclusion of the contract as regards the contracts to be concluded in informatics ways (electronic) or the sale which shall be effected through offering in domiciles or workplaces. 

Article 1320 

Confirmation of the Dealing 

Each distributor of a commodity or service shall abide by submission of account statement upon request of the consumer confirming dealing or contracting with him in respect of the product, provided that it shall contain his name, name of his shop, date of dealing, place, price, type of product, specifications condition, quantity, date of delivery and to be sealed and signed by him. 

Article 1321 

Consumerís Right to avail of the Reductions 

In case the country decided reductions in taxes and fees which are incorporated into elements of the cost of the commodity or services. These reductions should be reflected at the level of his sale prices. 

In case the prices are reduced by the producer or a whole State merchant in exceptional or temporary manner during the occasions and seasons, the end consumer should avail of the value of such reduction whatever the product price system.

Chapter Five Guarantee of Goods and Services 

Article 1322 

Quality Insurance 

Taking into consideration what is to be decided by the general rules, the distributor shall be considered as a guarantor of the goods and services which he shall provide. In case of defective goods he shall ensure repairing or replacement of the goods or repayment of their price at the consumerís option. The right to guarantee shall remain existing even if the commodity is transferred to a third party. 

Any agreement for cancellation or reduction of such guarantee shall be considered null and void 

Article 1323 

Certificate of Guarantee 

The Competent Secretary may submit some goods and services to conditions or submission of a certificate of guarantee to the purchaser with definition of the statements which should be included in such certificate. 

Article 1324 

Distributorís Responsibility 

Any condition ñ wherever set out ñ which in its nature to relieve the distributer from his civil responsibility or reduces thereof towards the consumer shall be considered null and void. 

Article 1325 

Concealment of Goods and Imposition of Restrictions 

Any distributor may not conceal any commodity or service or abstain from is sale or impose purchasing of another commodity or receive a price higher than its declared price. 

Article 1326 

Penalties 

Without prejudice to any aggravating penalty provided for in the Penal Code or any other Law, anyone who violates the provisions of Articles (1310, 1311, 1312, 1313, 1314, 1315, 1316, 1317) shall be penalized by imprisonment for not less than one year and a fine not less than (LD 500) five hundred Libyan Dinars and no more than (LD 1,000) one thousand Libyan Dinars or by one of these penalties. The penalty shall be doubled in case or recidivism or if the deception acts are related to products dangerous to public health or medicament substances. 

The shop may be closed by a judgment and prevention from engaging in the activity temporarily or final as per the cases. 

The damaged or degraded or deceived or invalid materials or products as well as equipment and machine prepared for falsification and deception of the products, the forged scales, and measurers, dry measures shall be confiscated by a judgment and shall be destroyed at the expenses of the convict. 

In case of commitment of one of the crimes provided for in this section in favour of a legal person the shop shall be closed and prevented from engaging in its activity temporarily or finally. The legal person shall bear the responsibility of payment of the penalties jointly with crime author. 

Article 1327 

Judicial Officers 

A resolution shall be issued by the General Peopleís Committee in respect of determination of the judicial officers for implementation of provisions of this section. The judicial officers shall have the right of access to the shops, factories, workshops, warehouses and place where various products shall be supplied or offered for sale or manufacture. They shall have the right also to see the documents, papers, records, statements of account and all the documents related to production, manufacturing, circulation and distribution of various products. They may also take samples for analysis; take the precautionary measures required by the public interest, health protection and general safety of consumers.