Abu Dhabi’s New Social Media Influencer Ad Ban: $2,700 Fines and Licence Application Details

Abu Dhabi’s Department of Economic Development (ADDED) has currently launched a new regulation that aims to annul the licenses of those social media influencers and any licenced economic establishments who wish to exercise the advertising services. This new rule is going to be implemented from the financial year 2019-20, considering that the first quarter of the financial year will start from the first of July.

ADDED was keen to point out that the penalties for not obeying will also commence from early July. Such violations may lead to fines up to AED10,000 ($2,700) and business shutdowns, should those businesses fail to follow the requirements of the new law.

Outlay and Procedure applicable towards Acquisition of Licence

For anyone to legally advertise services, individual commercial entities need to use the services for AED 1250 ($ 340) while business entities need to pay AED 5000 ($ 1360) for the same. This is done by the single integrated online platform of TAMM for issuing and managing the application. This ADDED Services can be accessed by applying the licence request by the business and influencers and the selecting of the advertising activities on e-platforms.

It should also be noted that the foreign individuals who are permanently staying in a country other than UAE can also apply for a licence if they have an Emirates ID card or UAE Unified Number.

The participation of the government and other non-local individuals and corporations.

However, the about acronym ADDED clarified that government companies were not exempt from this requirement. -business establishments existing in the emirate and branches of companies registered in other areas, need to secure permits from ADDED.

Permision from the UAE Media Council does not necessarily remove the need for influencers to acquire a licence from ADDED for offering advertising services through electronic channels.

Nowadays Licences and Anticipated Co-Operation

At the moment, licence for practice of advertising services in electronics media and social applications is available in Abu Dhabi and there are 543 such licences available. However, with the advent of a new regulation in this area, this number is expected to increase sharply.

As for the new requirements, it is worth noting that ADDED called on all economic establishments and social media influencers to adhere to the current guidelines in order to prevent fines and other penalties from being imposed on them. Companies that do not adhere to the new regulation during the hiring of influencers will be liable for fines of between AED 3,000 ($817) and AED 10,000 ($2,720) and might be shut down for ignoring the directives of the ADDED.

This decision is beneficial in improving the economic climate in Abu Dhabi as it seeks to promote order and subsequently ban the practicing of influencer advertising with out consideration of the customers’ interests.