The Palestinian Finance Ministry decided Tuesday to indict four merchants who violated the boycotted on products made in West Bank settlements.
The four Palestinians are expected to face harsh penalties.
The law that prompted the boycott, co-initiated by Palestinian Prime Minister Salam Fayyad, rules that "anyone who trades in settlements products or cooperates or assists in their sale or import shall be imprisoned for 2-5 years and pay a fine of 10,000 Jordanian dinar (roughly $14,000)."
Moreover, the law states that Palestinians caught selling settlement products may have their license revoked and vehicle impouned.
Despite this, Fayyad's counterpart in Gaza, Ismail Haniyeh, said he believes the Palestinian Authority is not being firm enough with Israel.
Hamas unimpressedHaniyeh has inveighed against the West Bank government for prohibiting the use of amplifiers in mosques located near settlements before the fast-breaking meal of the Ramadan, which he claims was done at Israel's request.
In addition, the Hamas prime minister accused the largely secular Palestinian Authority of targeting Islamic charity funds and of prohibiting certain Muslim clerics from speaking at mosques.
"This is a war against religion on the path to implementing an American-Zionist conspiracy," he said at a religious ceremony in Gaza.
Accusing the Palestinian government of "attempts at religious normalization" with Israel, Haniyeh added that "they want clerics to enter the al-Aqsa mosque while the Israeli flag waves next to it and as Israel stamps their passports, all the while prohibiting residents of Jerusalem from entering the mosques."