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UAE Tightens Grip on Influencer Marketing: Licensing Mandate Enforced
In a move to bring order and accountability to the burgeoning influencer marketing landscape, the United Arab Emirates (UAE) will enforce a new regulation requiring social media influencers to obtain licenses to engage in advertising activities, effective July 1. Failure to comply with this mandate will result in hefty financial penalties.
According to a statement from the Abu Dhabi Department of Economic Development (ADDED), this decision, which also applies to companies, stipulates the imposition of fines that can reach up to 10,000 Emirati dirhams (approximately $2,700) and potentially lead to the closure of the business.
The licensing fees are set at 1,250 Emirati dirhams (around $340) for individual businesses and 5,000 Emirati dirhams (approximately $1,360) for companies. ADDED emphasized that this decision aligns with efforts to strengthen and create an ideal business environment in Abu Dhabi while regulating the influencer sector and safeguarding consumer rights.
Non-compliance with the rules and requirements when entering into contracts with social media influencers will expose these individuals to penalties and sanctions ranging from 3,000 to 10,000 Emirati dirhams and may also subject the company to potential closure.
Notably, possessing authorization from the UAE Media Council does not exempt influencers from the obligation to obtain the necessary licenses and permits from ADDED to engage in online promotional and advertising activities, thus avoiding fines and sanctions imposed on violators.
The Abu Dhabi Department of Economic Development has urged all companies and social media influencers to comply with the requirement to obtain a license from ADDED to legally conduct online promotional and advertising activities.
As the influencer marketing industry continues to flourish, the UAE's proactive stance in implementing a licensing regime underscores the nation's commitment to fostering a transparent and regulated environment for this rapidly evolving sector. By mandating influencers to obtain licenses, the authorities aim to establish accountability, protect consumer interests, and create a level playing field for businesses operating in the digital advertising realm.