Dubai launches e-Trader licences in fight against fake goods sold via social networks

Ibrahim Behzad, director of intellectual property rights management at the Dubai Department of Economic Development, looks at a pile of counterfeit products scheduled for destruction last month. AntonShow more

Dubai has launched a licensing scheme for business done over social networks hard on the heels of a crackdown on the sales of counterfeit goods over such channels.

The Dubai Department of Economic Development (DED) revealed its “e-Trader” scheme yesterday – but it will only be open to Emiratis and GCC nationals of ages 18 and over.

It was not immediately clear how business activities conducted over social networks by non-GCC residents will be affected.

Those holding a licence will not be permitted to open a physical store or issue visas and will bear sole responsibility for any dispute, according to a statement carried by the Wam news agency.

The DED’s business registration and licensing (BRL) department will launch an awareness campaign about the new scheme, with a view to signing up 3,000 participants by the end of the year. The pricing of the licences has not been disclosed.

The scheme will have “a significant role in promoting consumer confidence in shopping for products and services on social networking sites”, said Omar Bushahab, the chief executive of the DED’s BRL department.

“Through this initiative, we aim to promote and facilitate doing business in Dubai and introduce new solutions capable of contributing to economic development in Dubai, and the UAE in general.” The announcement comes less than a week after the DED revealed the closure of nearly 9,000 social media accounts for selling counterfeit goods in 2016, treble the number of those shut down the previous year.

Instagram accounted for 80 per cent of the offending accounts, the DED said.

“Licensing a business activity enhances consumer confidence on one hand and on the other, it removes the risk of infringement on a reserved trade name or other intellectual property,” said Mr Bushahab.

“A licence guarantees the rights of everyone concerned and defines the legal accountability of the merchant.”

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