UAE tightens telemarketing regulations: what you need to know

The UAE government has introduced transformative legislation to regulate telemarketing practices through Cabinet Resolutions No. 56 and No. 57 of 2024. Effective from 27 August 2024, these rules aim to protect consumers from unwanted marketing calls while ensuring businesses operate transparently and ethically.

Key Provisions of Cabinet Resolution No. 56 of 2024

1. Objective and Scope

The new regulations seek to balance consumer privacy with business needs by controlling the marketing of products and services via phone calls. Applicable to all licensed companies in the UAE, including those in free zones, the rules prohibit natural persons from making marketing calls using personal phone numbers.

2. Obligations for Companies

• Approval and Training: Companies must obtain prior approval from the Telecommunication and Digital Governance Regulatory Authority (TDRA) before engaging in telemarketing. They are also required to train their marketers on professional ethics and the use of the Do Not Call Registry (DNCR).
• Local Numbers: All marketing calls must be made using local phone numbers registered under the company’s commercial licence.
• Record-Keeping and Reporting: Companies are required to maintain detailed records of all marketing calls and submit regular reports to the relevant authorities.
• Call Controls: Marketing calls are restricted to between 9.00am and 6.00pm. Companies must avoid deceptive practices and undue pressure tactics. If a consumer rejects a product or service, the company must not call them again. Furthermore, companies can call consumers no more than once a day and twice a week if the call goes unanswered.

3. Consumer Protection

Consumers can register their phone numbers in the DNCR to avoid unsolicited marketing calls. Should they continue to receive unwanted calls, they can file a complaint with the TDRA, which will investigate and take action against the offending company.

Penalties Under Cabinet Resolution No. 57 of 2024

1. Strict Penalties for Non-Compliance

Cabinet Resolution No. 57 outlines strict penalties for companies and natural persons that violate the telemarketing regulations. The penalties for businesses that contact consumers on the DNCR include:

• First Violation: AED 50,000 fine
• Second Violation: AED 75,000 fine
• Third and Subsequent Violations: AED 150,000 fine

Additional sanctions may include warnings, suspension of telemarketing activities, and even the cancellation of business licences, depending on the severity and frequency of the violations. For individuals, penalties include fines and interruptions of phone services, escalating with repeated violations.

2. Grievance Mechanism

Companies and individuals can file grievances against penalties within 15 days, and the relevant authority must decide on the grievance within 30 days, ensuring a fair and transparent process.

Impact on Business Practices

These regulations necessitate significant changes in the way businesses operate. Companies must train staff, update systems, and modify practices to comply with the new rules. Government-led awareness campaigns will play a crucial role in ensuring businesses and consumers understand their rights and obligations.

In summary, the UAE’s new telemarketing regulations represent a robust effort to protect consumer privacy and enforce ethical business practices. By implementing these rules, the government aims to create a respectful and transparent telemarketing environment that prioritises consumer interests.

If your company currently uses telemarketing for advertising and marketing, it is crucial to ensure compliance with the new regulations to avoid hefty fines and operational disruptions. Senior lawyer, Damian Wright, from our Regulatory & Investigations team recently discussed these new cold-calling regulations on the Dubai Eye 103.8 Breakfast Show. 

Get in touch with Rebecca Kelly, Alexandra Lester or Damian Wright to guide you through these changes and help you adhere to the new rules. Together, we can safeguard your business interests while respecting consumer privacy and upholding ethical standards in telemarketing.