Starting July the Department of Economic Development (DED) in Abu Dhabi will enforce strict new licensing rules for social media influencers and companies engaged in advertising. This move aims to bring order and professionalism to the rapidly growing sector of social media marketing. Here’s everything you need to know about the new rules and regulations.
What is an Influencer?
An influencer is someone with a substantial and active social media following, capable of shaping the opinions, behaviors, and purchasing decisions of their audience. Often viewed as trendsetters, influencers’ recommendations and endorsements can significantly affect the businesses and brands they support.
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New Licensing Rules and Fees For Influencers
The DED mandates that all social media influencers and advertising companies must obtain a license to operate legally. Here are the specifics:
1- Licensing Rules For Individuals
The license fee for individual influencers is set at Dh1,250.
2- Licensing Rules For Companies:
Advertising companies are required to pay a license fee of Dh5,000.
Licenses can be easily obtained through the Tamm platform by accessing the ‘Department of Economic Development Services’. The process is streamlined to ensure ease of access for both residents and foreigners. Foreign nationals can also apply for a license provided they possess an Emirates ID card or a unified number.
Penalties for Non-Compliance
The DED has outlined significant penalties for those who fail to comply with the new regulations:
Fines
Non-compliance can result in fines starting from Dh3,000 and going up to Dh10,000.
Business Closure
In severe cases, non-compliant businesses may face closure.
These penalties apply to both individual influencers and advertising companies. The enforcement of these penalties is aimed at ensuring that all parties involved in advertising activities operate within the legal framework.
Government Company Compliance
The regulations are not limited to private enterprises. Government companies are also required to obtain the necessary licenses for engaging in advertising activities. This ensures a uniform standard of compliance across all sectors.
Additional Requirements for Influencers
Even if social media influencers have permits from the Emirates Media Council, they are still required to obtain a government license from the DED. This additional layer of regulation underscores the importance of adhering to local laws and maintaining the integrity of advertising practices in Abu Dhabi.
Guidelines for Licensed Businesses
All licensed businesses in the emirate must follow specific guidelines when partnering with social media influencers. These guidelines are designed to ensure transparency and accountability in advertising practices. Violations of these guidelines will expose businesses to the same penalties, including fines and potential closure.
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How to Stay Compliant
To avoid penalties and ensure smooth operation, businesses and influencers should:
- Obtain the Necessary License: Visit the Tamm platform and complete the licensing process through the ‘Department of Economic Development Services’.
- Understand the Guidelines: Familiarize yourself with the guidelines set forth by the DED for partnerships with social media influencers.
- Maintain Documentation: Keep records of all advertising activities and partnerships to demonstrate compliance if inspected.
- Regularly Review Regulations: Stay updated with any changes in the regulations to ensure ongoing compliance.
Conclusion
The new regulations introduced by the DED in Abu Dhabi reflect the emirate’s commitment to regulating and professionalizing the advertising industry. By requiring licenses and setting clear guidelines, Abu Dhabi aims to create a fair and transparent environment for all participants in the advertising sector. Compliance with these rules is crucial for avoiding hefty penalties and ensuring the longevity of your business operations.
Stay informed and stay compliant to thrive in Abu Dhabi’s dynamic advertising landscape.
