In a bid to implement a tighter mechanism and control, the government of the UAE has put into place new regulations on telemarketing through phone calls. Coming into force in August 2024, violators of the new implementation may face several administrative penalties, including warnings and fines of up to AED 150,000.
The Ministry of Economy, along with the Telecommunication and Digital Government Regulatory Authority (TDRA) has revealed a series of procedures and controls that will drastically change the telemarketing methods. These implementations are believed to serve as a blessing for the common public who wish not to get harassed by unnecessary promotions and calls from companies or brands they are not interested in.
The move has also been coordinated with the Central Bank of the UAE, the Securities and Commodities Authority, and local licensing authorities to ensure fair implementation of the new provision.
Purpose of New Regulations
The new regulations have been put into place to establish strict guidelines that companies need to follow in terms of maintaining appropriate time and channels to market their products and services.
The new implantation will put an end to unsolicited marketing and promotional phone calls, which, in turn, will contribute to eliminating customer harassment. In the process, the privacy of customers will be safeguarded, and their comfort will be enhanced.
Overview of New Regulations
Cabinet Resolution No. 56 of 2024 Regulating Marketing via Telephone Calls and Cabinet Resolution No. 57 of 2024 Concerning Violations and Administrative Penalties help safeguard the privacy of consumers. They also ensure marketing calls are taking place in compliance with the established legal and ethical standards.
As per the new regulation, marketing calls can be made only between 9:00 AM to 6:00 PM. Furthermore, marketing executives are prohibited from contacting a customer about their products or services who has denied interest in the initial contact.
Consumers can’t be contacted more than once a day, and in the event of a consumer terminating a call or not answering a call, marketing executives can only attempt to reach them twice a week.
The new regulation also requires marketing executives to seek the consent of the consumer at the beginning of the call by letting them know that they are going to advertise and promote their products and services.
The regulation permits the use of an automated dialing system for advertising and promoting products and services. Companies must also obtain prior approval for their telemarketing activities from the Competent Authority and ensure their marketers are trained on professional conduct and the Do Not Call Registry (DNCR). In May 2024, the cabinet also approved the decision to regulate cold calls.
Key Provisions for Companies
With the implementation of the new rule, companies have to adhere to certain provisions to avoid penalties. Companies are required to:
- Obtain prior approval to practice phone marketing activity from the Competent Authority.
- Provide comprehensive training to marketers on ethics and DNCR use.
- Use local phone numbers issued by licensed telecommunications companies and registered under their commercial license.
- Create a communication channel for interested consumers and market only to these individuals.
- Avoid calling consumers listed on the DNCR.
- Maintain and record marketing call data in the prescribed format, retaining records for the period specified by the Competent Authority.
- Inform consumers at the start of the call that it is for marketing purposes.
- Submit periodic reports as required by the Competent Authority.
- Sign a code of professional conduct if deemed necessary.
- Comply with specified call times and identify the company and call purpose.
- Disclose the source of consumer phone numbers upon request.
- Avoid using unregistered phone numbers.
The privacy and comfort of the consumers must be maintained. Companies should also steer away from any deceptive practices and limit their marketing calls to specific hours and frequencies.
In addition, companies must maintain the records of their marketing calls in a prescribed format that they may have to disclose to authorities at any given time. Although an automated dialing system is permitted, it should be done using only authorized local phone numbers and after obtaining approval.
Complaint Mechanisms
Companies must maintain a code of conduct of identifying themselves to the consumers and disclosing their data sources. Before marketing their products or services, they need to obtain the consent of the consumers.
Consumers have the right to lodge complaints about unwanted and unauthorized marketing calls. Once the complaint is registered, concerned authorities will take necessary steps through established procedures.
You can even get in touch with our registered law firm to get assistance about how to go about the right way in handling such situations. Our legal professionals will assist you in following the right procedure.
Violations and Penalties
Violations of the newly-formed regulation will lead to severe legal consequences for companies. Corporate violations may entail fines that can range from AED 10,000 to AED 150,000, depending on the severity of the situation. Stricter penalties are put in place for repeat offenders.
Individual violations concern an individual making unauthorized marketing calls. This may lead to a fine of AED 5,000 to AED 50,000. Severe charges may also lead to a ban or disconnection of telecom services.
Failure to obtain prior approval can lead to a fine of AED 75,000 on the first instance, AED 100,000 on the second instance, and AED 150,000 on the third instance. If any marketing call is made to a consumer on the ‘Do Not Call Registry’ (DNCR) list, it may lead to a fine of AED 150,000.
Misleading, false, or deceptive marketing can lead to a fine of AED 25,000 to AED 75,000, while marketing with unregistered numbers can lead to a fine of AED 75,000.
To Conclude
The new telemarketing resolution implemented by the UAE government has been hailed as a significant measure. It will enhance consumer experience by minimizing the harassment they face from unwanted marketing and promotional calls. This will lead to the creation of a more consumer-friendly and transparent market environment.