The Abu Dhabi Department of Economic Development (ADDED) has announced a significant regulatory change requiring all licensed economic establishments and social media influencers to obtain a specific licence for engaging in advertising services. This new regulation aims to streamline advertising activities and protect consumer rights within the emirate.
Key Details of the New Regulation:
1. Effective Date and Penalties:
o The regulation will come into effect in early July 2024.
o Non-compliance will attract fines ranging from AED 3,000 ($817) to AED 10,000 ($2,720).
o Severe breaches could result in the closure of businesses.
2. Licensing Fees:
o Individual establishments must pay a licence fee of AED 1,250 ($340).
o Businesses are required to pay AED 5,000 ($1,360) for the licence.
3. Application Process:
o Licences can be obtained via the unified digital platform TAMM.
o Applicants need to select the desired activities, including advertising services on electronic platforms.
4. Eligibility for Foreigners:
o Foreign nationals can apply for a licence provided they have an Emirates ID card or a UAE Unified Number.
5. Inclusivity of Regulation:
o All entities, including government companies, must comply.
o Branches of companies from outside Abu Dhabi must also obtain the necessary permits from ADDED.
o Social media influencers with permits from the UAE Media Council are still required to obtain an additional licence from ADDED.
Regulatory Goals and Compliance:
ADDED underscores that this initiative is part of a broader effort to foster a robust and transparent economic environment in Abu Dhabi. By regulating the sector, ADDED aims to ensure fair practices and protect consumer rights in the digital advertising domain.
Currently, there are 543 active licences for advertising services on electronic platforms and social media within the emirate. ADDED anticipates a significant increase in this number following the new mandate.
Compliance and Consequences:
ADDED urges all economic establishments and social media influencers to adhere to these new requirements. Failure to comply not only results in fines but may also lead to the suspension or closure of businesses. This strict enforcement highlights ADDED’s commitment to regulating the advertising landscape and maintaining high standards of consumer protection.
