Abu Dhabi Cracks Down on Influencer Advertising: New Compliance Rules and Penalties

Authorities in Abu Dhabi have issued a stern warning to licensed businesses about the importance of complying with regulations when engaging with social media influencers. The Department of Economic Development (ADDED) has stated that firms violating these guidelines could face closure or fines ranging from Dh3,000 to Dh10,000.

In a circular released on June 20, ADDED outlined three key compliance requirements for businesses:

1. Licensing for Influencers: Social media influencers must obtain a license from the relevant department before advertising any services through websites.
2. Advertising Permits for Businesses: Economic establishments must secure a permit from ADDED when conducting any form of advertising, marketing, or promotional activities.
3. Valid Licenses for Contracts: When contracting with influencers and social networking sites, businesses must ensure they possess a valid license issued by ADDED.

The National Media Council (NMC) initially implemented rules in 2018, requiring social media influencers who earn money by promoting brands and businesses to obtain a media license. A similar reminder was issued in 2019, warning that unlicensed paid influencers must either secure a license or face a fine of Dh5,000. The NMC continues to monitor illegal activities on social media and other online platforms.

Social media influencing has grown into a highly profitable industry, with influencers on platforms like Instagram and TikTok charging substantial fees to promote brands. However, individuals who simply share everyday content with their followers without financial compensation do not need a license. For example, recommending a restaurant is permissible as long as the influencer is not paid for it.

The regulations also extend to news websites, electronic publishing outlets, and on-demand printing services, requiring them to obtain a license from the NMC to operate within the UAE. Those using social media to promote brands and businesses for financial gain must also secure a media license from the NMC.