The government of Abu Dhabi has issued a directive requiring all emirate-licensed firms to adhere to certain regulations concerning collaborations with social media personalities.
UAE-licensed businesses
Authorities in Abu Dhabi are urging all licensed businesses in the emirate to strictly adhere to guidelines regarding their partnerships with social media influencers. Failure to comply could lead to severe penalties, ranging from closure to fines starting at Dh3,000 and escalating up to Dh10,000, as outlined by the Department of Economic Development (ADDED).
Social media influencers
In a circular issued today, June 20, ADDED specified three critical areas of compliance that economic establishments must follow:
Before they may advertise their services on websites, social media influencers need to have a license from ADDED. In order to run ads, marketing campaigns, or any other kind of promotional activity, businesses need to get a permit from ADDED. Before signing contracts with social media influencers or influencer marketing firms, businesses should check that they have a current license from ADDED.
The regulations stem from directives established by the National Media Council (NMC) in 2018, which mandated that social media influencers earning income from promoting brands and businesses obtain a media license. This requirement was reiterated in 2019, with authorities warning unlicensed influencers of fines amounting to Dh5,000. The NMC actively monitors illicit activities on social media and other digital platforms through a dedicated enforcement team.
The field of social media influencing has burgeoned into a lucrative industry, with influencers commanding substantial fees for promoting brands on platforms like Instagram and TikTok, where they maintain large followings. It's important to note that individuals who share personal content with their followers without financial compensation are exempt from these licensing requirements and regulatory oversight.
Furthermore, the regulations extend to encompass news websites, electronic publishing outlets, and on-demand printing services conducting commercial activities through social media within the UAE. These entities are also obligated to obtain an NMC license to operate legally in the country. Additionally, individuals leveraging social media platforms for brand endorsements and business transactions must secure a media license issued by the NMC to comply with these regulations.
The ADDED's latest circular underscores the importance of adhering to regulatory frameworks to maintain transparency and accountability in digital marketing practices. By requiring licenses and permits for advertising and influencer collaborations, authorities aim to safeguard consumer interests and ensure fair business practices within the burgeoning digital economy.
Businesses operating in Abu Dhabi are encouraged to verify their compliance status with ADDED and NMC regulations to avoid penalties and potential disruptions to their operations. Timely adherence to these guidelines not only protects businesses from legal ramifications but also fosters a trustworthy environment for consumers engaging with digital content and online advertisements.
The regulatory measures implemented by ADDED and NMC are pivotal in addressing the evolving landscape of digital marketing and social media influence. These efforts are crucial in combating fraudulent practices and maintaining the integrity of advertising practices in the UAE's digital marketplace.