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Abu Dhabi Imposes Up to AED 10,000 Fine for Illegal Social Media Influencer Contracts

In a significant development shaking up Abu Dhabi's business community, the Department of Economic Development (ADDED) has introduced stringent new regulations affecting social media influencers and economic enterprises. Whether you're a burgeoning startup, a thriving corporation, or an influencer aiming for digital success, these guidelines are poised to reshape how businesses engage in social media marketing.

The latest circular from ADDED mandates that every economic entity in Abu Dhabi must adhere strictly to regulations when collaborating with social media influencers. Gone are the days of spontaneous paid posts and impromptu partnerships. Now, obtaining official approval from ADDED is imperative before launching any promotional campaign.

For influencers, the requirement is clear: they must obtain a license from ADDED to endorse products or services on their social media platforms. Without this endorsement, they are prohibited from engaging in promotional activities. Meanwhile, businesses must ensure they secure permits from ADDED for every promotional campaign, advertisement, or flash sale advertised on platforms like Snapchat or TikTok. Moreover, when partnering with influencers, businesses must verify that the influencer holds a valid ADDED license.

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ADDED has underscored the seriousness of these regulations with a structured penalty system. Violators face fines ranging from Dh3,000 to Dh10,000, depending on the severity of the offense. This punitive approach underscores ADDED's commitment to maintaining fairness and transparency in the digital marketing landscape.

In summary, compliance with ADDED's new guidelines isn't merely about avoiding financial penalties; it's about aligning with regulatory standards to ensure sustainable business practices. By adhering to these rules, businesses can navigate the evolving digital environment with confidence, leveraging social media effectively while upholding legal standards set forth by ADDED.

June 21, 2024 10:52 a.m. 511

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