Abu Dhabi firms warned against illegal contracts with social media influencers

Abu Dhabi

Abu Dhabi Authorities Issue Warnings and Fines for Illegal Contracts with Social Media Influencers

Abu Dhabi's Department of Economic Development (ADDED) has issued a stern warning to all licensed economic establishments in the emirate regarding compliance with regulations related to partnerships with social media influencers. Failure to adhere to these guidelines could result in severe penalties, including the closure of businesses and fines ranging from Dh3,000 to Dh10,000.

The recent circular emphasizes three key areas of compliance that economic establishments must follow:

1.  Licensing for Social Media Influencers : Influencers must secure a license from the relevant department before engaging in advertising services through websites or social media platforms. This licensing requirement is crucial to ensure that all promotional activities are regulated and meet the established standards.

2. Permits for Advertising Activities : Economic establishments must obtain a permit from ADDED for any advertising activity, which includes advertisements, marketing campaigns, or other promotional activities. This step ensures that all marketing efforts are authorized and conducted within the legal framework set by the department.

3. Valid Licenses for Contracting : When contracting with influencers and social networking sites, economic establishments must verify that they have a valid license issued by ADDED. This requirement aims to prevent unauthorized collaborations that could lead to misleading or unregulated advertisements.

This move by ADDED aligns with the rules established by the National Media Council in 2018, which mandated that social media influencers register and obtain a license to operate legally. The council's regulations were designed to bring more accountability and transparency to the growing influence of social media personalities in advertising and marketing sectors.

ADDED's recent circular underscores the importance of these regulations and the consequences of non-compliance. Economic establishments and social media influencers are both subject to these rules to ensure that all promotional activities are conducted legally and ethically.

The increasing role of social media influencers in marketing has prompted authorities to tighten regulations and enforce compliance more strictly. Influencers often have significant reach and impact, making it essential to ensure that their activities are monitored and regulated to protect consumers and maintain the integrity of the advertising industry.

In response to these guidelines, businesses in Abu Dhabi are urged to take the necessary steps to ensure compliance. This includes verifying the licensing status of any influencers they plan to work with, obtaining the required permits for advertising activities, and maintaining up-to-date licenses for all promotional engagements.

Failure to adhere to these regulations not only risks financial penalties but also the potential closure of businesses. ADDED's proactive stance highlights the government's commitment to fostering a regulated and transparent economic environment where businesses can operate fairly and responsibly.

For social media influencers, obtaining the necessary licenses is now a critical part of their professional responsibilities. This measure ensures that they are recognized as legitimate advertising entities and that their promotional activities are in line with legal standards.

As the digital landscape continues to evolve, the collaboration between economic establishments and social media influencers will likely grow. Therefore, adherence to these guidelines is essential for maintaining trust and credibility in the marketplace.

In conclusion, the recent directive from ADDED serves as a reminder to all economic establishments and social media influencers in Abu Dhabi about the importance of regulatory compliance. By following the outlined guidelines, businesses can avoid significant penalties and contribute to a fair and transparent advertising ecosystem. The enforcement of these regulations is a step towards ensuring that all promotional activities are conducted ethically, protecting consumers, and upholding the integrity of the advertising industry in Abu Dhabi.