Is Your Influencer Marketing in Abu Dhabi Legal?

Influencer marketing in Abu Dhabi is booming, from fashion to finance! But with this growing power comes a need for clear rules. The government wants to make sure everyone is playing fair, so they are introducing new influencer marketing regulations.

The new rules will start on July 1st, 2024, and both influencers and businesses need to understand them. Breaking these rules could lead to a hefty fine of up to Dh10,000!

This blog post is like your guidebook for the new influencer marketing rules in Abu Dhabi.  It’s for anyone making a name for themselves online (influencers) or businesses that want to partner with influencers.

Who Needs An Influencer Marketing License?

Anyone promoting stuff on social media for money in Abu Dhabi needs a new permit. So, if this sounds like you, here is what you need to know:

Social Media Influencers:

Even if you have a small following, promoting products or services on social media requires a license from the Abu Dhabi Department of Economic Development (ADDED). This rule applies regardless of the size of your audience, ensuring that all influencers operate within a legal framework.

Businesses Collaborating with Influencers:

Any business that works with influencers for marketing—like sponsored posts, product reviews, or brand endorsements needs a license from ADDED. It will make sure businesses advertise legally on social media.

Government-owned and external companies

Even companies owned by the government need these licenses, showing these new rules apply to everyone. Moreover, if your company is from outside Abu Dhabi and wants to advertise here, you also need a permit from ADDED.

Why Regulations are Reshaping Social Media Marketing?

While influencing itself isn’t banned, more and more places are now demanding that influencers and the companies they work with get licensed. This shift raises the question: why the sudden call for rules?

Consumer Protection:

As you scroll through social media and see someone you follow recommending a new face cream, it may seem appealing. But without a special permit, you can’t be certain if they truly know about the cream or if they’re just being paid to promote it.

This can be confusing, especially for younger people who tend to trust everything influencers say. That’s why the Abu Dhabi Department of Economic Development is now making influencers get licenses. It’s a way to make sure they understand the rules of advertising and legally promote products.

Taxation:

Influencers, who generate significant income may be liable for taxes. Licensing can help governments track these earnings and ensure they are paying their fair share.

Combating False Advertising:

Fake endorsements are a big issue. Some influencers might make up stuff to sell products, but licenses could make them be honest about who’s paying them. In this way, you’ll know if someone truly likes a product or is just getting paid to say so.

Protecting Brands:

Brands want to team up with honest influencers who match their image. These licenses help make sure of that, so brands don’t accidentally partner with someone misleading or fake.

Avoid Big Fines and Maintain Trust

Working with social media stars (influencers) is a great way to sell stuff, but there are new rules in some areas. If you skip these rules, you could get in BIG trouble!

Fines Up To Dh10,000

Just like getting a speeding ticket, influencers and businesses who don’t follow the licensing rules can get fined a lot of money. In Abu Dhabi, the fine is Dh10,000! Ouch! Some businesses might even get shut down entirely!

Lose Trust 

If you don’t have a license, people might not believe you. They might think you’re not a real influencer or that you’re not following the rules. This can hurt your reputation and make it hard to find businesses to work with.

No More Posting 

Social media platforms like Instagram and YouTube might stop you from posting if you don’t have a license. This means you can’t connect with your followers or promote products anymore!

How to Obtain an Influencer License?

Obtaining a social media influencer license is a simple process ensuring compliance with local regulations and enhancing credibility.

Influencer License Categories

License Category	Applicant Type
Category 1	Independent social media influencers
Category 2	Groups of influencers forming companies for collaborative ventures
Category 3	Influencers affiliating with licensed agencies managing multiple influencers under one license.

Online Application:  

Head to the Tamm platform and navigate to the “Department of Economic Development Services” section.  Then, select the activities you’ll be involved in, including “advertising services on e-platforms.

Fees and Eligibility:  

The license fee depends on your situation.  Solo influencers pay Dh1,250, while companies shell out Dh5,000.  The good news is that even foreign influencers can apply,  provided they have a valid Emirates ID or UAE Unified Number.

The End Line

The new rules may seem inconvenient, but they’re a good thing for influencer marketing in Abu Dhabi. By July 1st, make sure both you and any influencers you collaborate with have the right licenses to avoid penalties. Share this with other influencers and businesses who might need to know!