Business

New social media marketing rule 'aimed at regulating' influencers’

 
Muscat: The recent rule to regulate marketing and promotions on social media and on the Internet will only impact individuals, according to a legal expert.

As the Ministry of Commerce, Industry and Investment Promotion (MoCIIP) recently issued a decision 619/2022 regulating the practice of marketing and promotion activity on social media, several individuals and organisations contacted the Observer for clarity on the matter.

'I have my page on social media, which I use to promote local news and updates. I am anxious to know these regulations will affect people like me,' said a freelancer.

'The regulation appears to target influencers who promote goods and services on a for-profit basis. It does not apply to a person who has a home-made business, or who owns any business, who uses social media to promote their goods and services,' said Riyadh al Balushi, co-founder of decree.om and a lawyer.

He clarified that if a person is on social media and does not promote goods and services by other people for money, then they are not required to be licensed, and they do not need to take any legal action to continue their social media activities.

'If a person is an influencer who is paid to promote goods and services, then they are required to conduct their business through a company. They need to register their own company or have their activity fall under a company they are associated with, and they need to apply for a licence.'

He added, 'In my opinion, this regulation is necessary to protect consumers, and we will have to see if it will be effectively enforced.'

MoCIIP regulation gives the concerned parties six months from its enforcement date to obtain a licence.

Those excluded from obtaining the licence are persons who practice non-profit activities such as charitable and voluntary work and the activities carried out by the merchant for the commodity or service that he sells or provides himself, provided that the merchant adheres to the other provisions contained in these regulations.

It also calls for not spreading malicious or misleading rumours and news, respecting the national identity of the Sultanate of Oman, not broadcasting any data or information that offends individuals or any social groups and incites hatred and violence, not infringing on intellectual property rights, and not to market and promote tobacco and smoke of all kinds and methods of consumption.

The regulation specified the imposition of penalties for violators of its provisions, and it includes several penalties - a warning, an administrative fine not exceeding RO 1,000, suspension of the licence for a period not exceeding one year, and complete licence revocation.

The decision stipulated an applicant's request may be finalised within 15 days from the date the authorised department receives the necessary documents. In case the licence application is approved, the authorised department issues a 3-year licence, renewable, to enable the applicant for e-marketing and promotion activities.