UAE imposes fine of up to Dh500,000 for false advertising that misleads residents

A stern warning has been issued against misleading consumers through false advertisements and promotions in the UAE.

Offenders who break the law could face prison terms and fines of up to Dh500,000 under Article 48 of Federal Decree-Law No. 34 of 2021 on the Fight against Rumors and Cybercrimes.

He UAE Prosecutor’s Office highlighted the consequences faced by people who mislead consumers through a video shared on their social media channels.

The law states that persons who use information networks, information technology solutions or online platforms to spread misleading information about products or services may be subject to imprisonment and fines ranging from Dh20,000 to Dh500,000, or both.

According to the authority, the punitive measure also applies to anyone who promotes goods or services through misleading advertising or using false data. In addition, it addresses activities such as advertising, promotion, intermediation or negotiation of virtual or digital currencies without proper authorization from the relevant authorities.

This serves as a deterrent against people who use technology to spread misleading information about goods or services.

Advertising rules in the UAE

The Emirates also implemented advertising guidelines in October 2018, aiming to protect the public from marketing fraud and fake news, promote economic development, and uphold public morality.

The guide covers content from all media platforms in the UAE and applies to the entire advertising sector, from print, audiovisual and visual media organizations to online businesses and licensed social media influencers.

What the guide says:

• Individuals and companies must not harm the state’s economic system.
• You should not spread rumors or biased and misleading news.
• You should not publish images or words that violate public morality.
• You must respect intellectual property rights.
• They must maintain ethical codes of conduct; and must maintain standards of honesty

The guide also highlighted that advertisements should not be vague or ambiguous; must not contain false or misleading statements; You must not use falsified images; must not exaggerate the product or service being advertised; must not give rise to confusion with other names, products or activities; should not support criminal activity; and must not violate existing standards for media content and classification.

On social networks, blogs.

Advertisements on social networks, websites and blogs must be clearly identified. They must also appear independent of editorial and informative content. Any payments for online advertising, whether in cash or in kind, must be disclosed.

However, according to the guidance, several social media activities are exempt from licensing. This includes charitable activities and free, non-commercial advertising, among others.

A fine of Dh5,000 will be imposed on violators. The amount will be doubled if the violation is repeated within one year from the date of the previous violation.

News Source: Khaleej Times