Federal Decree-Law No. (14) of 2024 Regarding the Regulation of Traffic Rules
October 29, 2024
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ME-ALLIANCE BUSINESS INSIGHTS
Fines for Violating Social Media Influencer Contracting Terms
Social media influencers leverage their online presence and large follower base on platforms like Instagram, TikTok, and YouTube to engage with and influence their audience. They collaborate with brands to promote products, leveraging their credibility to shape consumer behaviour across diverse interests such as fashion, beauty, lifestyle, travel, technology, and entrepreneurship.
Accordingly, ADDED called upon all licensed economic establishments in the Emirate of Abu Dhabi to adhere to the following:
1. Social media influencers must obtain a licence from the ADDED before they can advertise services on websites.
2. Economic establishments must obtain a permit from ADDED whenever they do any advertising, like ads, marketing, or other promotions.
3. Economic establishments must ensure that they have a valid licence issued by ADDED when contracting with influencers and social networking sites.
4. Social media influencers must obtain separate licenses from ADDED for advertising via electronic platforms, even if they have a permit from the UAE Media Council for their activities.
If businesses do not follow these rules, they could face closure or fines ranging from Dh3,000 to Dh10,000, as stated by the Department of Economic Development (ADDED) table of violations. according to the decision, there are no exceptions for government companies, which are included among the entities operating in the emirate and benefit from or practise advertising services via electronic platforms.
The updated Closure, fines for unlicensed influencer collaborations supports Abu Dhabi’s economic development objectives by:
• Fair Business Practices:
Ensuring economic establishments obtain permits for all advertising activities promotes fair competition and transparency within the advertising and marketing sectors.
• Enhanced Regulation and Control:
By requiring social media influencers to obtain licenses from ADDED, Abu Dhabi ensures that all advertising activities are properly regulated, reducing the risk of misleading or unethical promotions.
• Economic Stability:
Mandating that businesses have valid licenses when contracting with influencers and social networking sites helps maintain a stable and reliable advertising ecosystem, benefiting both consumers and businesses.
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