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Ensuring an Ideal Economic Environment
Companies now face substantial fines of up to $2,720 if they collaborate with influencers without proper licensing. The Abu Dhabi Department of Economic Development (ADDED) has issued a clear warning to all licensed businesses: adhere to the relevant controls and conditions when working with social media influencers or face serious repercussions.
This initiative is part of ADDED’s continuous efforts to create an optimal economic environment for business growth and sustainability in Abu Dhabi. While ADDED recognizes the important roles that companies play in the emirate’s booming economy, it also places a strong emphasis on adherence to set rules in order to uphold high standards.
Mandatory Licensing for Influencers and Advertisers
Social media influencers must now secure a license from ADDED to legally advertise services online. This measure ensures that all promotional activities are regulated. Additionally, businesses must obtain a permit from ADDED for any form of advertising, whether promotional or marketing.
Maintaining Transparency and Accountability
This step is essential for maintaining transparency and accountability in advertising. When contracting with influencers or using social media platforms for advertising, businesses must ensure the influencers hold a valid license issued by ADDED. This requirement aims to create a structured and lawful advertising environment.
Strict Penalties for Violations
Non-compliance with these guidelines can lead to severe penalties. Fines for violations start at Dhs3,000 ($817) and can go up to Dhs10,000 ($2,720), with the risk of business closure for repeated failures to adhere to the regulations. ADDED has emphasized that penalties will be strictly enforced.
ADDED’s stringent measures are designed to protect the integrity of Abu Dhabi’s economic activities and ensure a level playing field for all businesses. While these regulations may seem daunting, compliance will help businesses and influencers avoid big fines.
In conclusion, it’s critical for companies to be cautious, abide by the rules to succeed in Abu Dhabi’s market. Adhering to these requirements is crucial for evading penalties and guaranteeing seamless operations within it’s competitive economic environment.
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