The Rise of Social Media Shopping — and Its Risks

Buying products through Instagram and Facebook ads has become part of everyday life in the UAE.

With a few taps, consumers can discover brands, place orders, and make payments, often without ever visiting a physical store or even a formal website.

But as convenience has increased, so too have complaints.

A growing number of consumers report a similar experience:

• a product is purchased through an ad
• payment is made online
• communication stops shortly after
• the product never arrives

In many cases, the “business” behind the ad becomes impossible to trace.

What Actually Happens When It Goes Wrong?

When a transaction fails in a traditional retail setting, the path forward is usually clear.

There is:

• a registered company
• a physical presence
• a customer service channel

In contrast, social media transactions can involve:

• unverified sellers
• cross-border operations
• accounts with limited traceability

This creates a fundamental problem:

Who are you actually buying from?

Are These Businesses Even Licensed in the UAE?

One of the key risks in social media commerce is the absence of clear verification.

Many accounts advertising products appear to present themselves as UAE-based businesses. However, in practice:

• there is no visible trade license
• no confirmed business registration
• no indication of regulatory oversight

This raises an important issue under UAE law, where commercial activity is generally expected to be conducted through properly licensed entities.

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What Protection Does UAE Law Offer?

From a legal standpoint, consumers in the UAE are protected under frameworks such as consumer protection laws and general principles of fraud and misrepresentation.

In theory, where a seller:

• misrepresents a product
• fails to deliver after payment
• engages in deceptive conduct

they may be exposed to legal consequences.

However, enforcement depends on one critical factor:

The ability to identify and locate the seller

Where the seller operates anonymously or from outside the UAE, practical enforcement becomes significantly more difficult.

The Real Challenge: Enforcement, Not Law

The issue is not that the UAE lacks consumer protection laws.

The issue is that social media commerce often operates across:

• jurisdictions
• payment channels
• digital identities

This makes it challenging to:

• trace the responsible party
• initiate legal action
• recover funds

In many cases, consumers are left with limited practical recourse.

Should Social Media Platforms Be Liable for Scam Ads in the UAE?

This is where the discussion becomes more complex.

Social media platforms such as Meta and TikTok provide the infrastructure through which these advertisements are delivered.

However, they are not, in the traditional sense, the sellers of the products.

This raises a broader legal question:

To what extent should social media platforms be responsible for verifying advertisers?

At present, platforms generally operate as intermediaries rather than regulated sellers.

But as social media increasingly functions as a commercial marketplace, the distinction between:

• advertising platform
• marketplace operator

is becoming less clear.

A Growing Regulatory Gap

What emerges is a gap between:

• rapid growth in digital commerce
  and
• the pace of regulatory adaptation

Traditional commerce in the UAE requires:

• licensing
• compliance
• regulatory oversight

Yet, social media commerce can bypass many of these checks.

This creates an uneven environment where:

• compliant businesses operate within regulatory frameworks
• unverified sellers may operate without the same constraints

What Should Consumers Do?

Until clearer regulatory mechanisms are introduced, consumers should exercise caution when purchasing through social media ads.

Practical steps include:

• verifying whether the seller has a registered UAE business
• checking for a legitimate website and contact details
• avoiding upfront payments where possible
• using payment methods that offer some level of protection

These steps do not eliminate risk, but they can reduce exposure.

How Al Kabban & Associates Can Assist

Al Kabban & Associates advises clients on consumer protection, fraud-related matters, and regulatory issues in the UAE.

Our services include:

• advisory on consumer rights and legal recourse
• assistance with fraud-related complaints
• guidance on regulatory compliance for businesses
• legal support in disputes arising from online transactions

Conclusion

Social media has transformed the way consumers shop, but it has also introduced new risks.

While the legal framework provides protection in principle, the practical realities of digital commerce can make enforcement difficult.

As the line between advertising and marketplace continues to blur, the question of responsibility is likely to become increasingly important. For now, awareness remains the first line of defence.

Al Kabban & Associates, with over 30 years of experience in UAE law and recognition by Legal 500, stands ready to help corporations build resilience against legal risks while ensuring compliance with local and international standards.

For more information or to schedule a consultation, contact us at +971 4 453 9090 or visit www.alkabban.com. You can also follow us on social media for more updates on everything law related in the UAE: @Alkabban_Law

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