Introduction
The UAE Government recently passed new regulations to monitor telemarketing activities. These regulations are contained in Cabinet Resolutions Nos. 56 and No. 57 of 2024. They go into effect on August 27, 2024, and are designed to safeguard customers from unsolicited marketing calls while ensuring companies conduct themselves honestly and morally.
The Ministry of Economy will supervise the execution of these resolutions in coordination with other agencies. It is important to get permission before engaging in telemarketing, forbid unsanctioned marketing calls, and establish stringent behaviour and openness rules.
An Overview of New Telemarketing Regulations in UAE
Obligations Set for Companies
Approval and Training: Before conducting any telemarketing, businesses should get official approval from the Telecommunication and Digital Governance Regulatory Authority (TDRA). Additionally, they must instruct their marketers on using the Do Not Call Registry and professional ethics (DNCR).
- Local Phone Numbers: Local phone numbers listed under the business’s commercial license must be used for all marketing calls.
- Record-Keeping and Reporting: Businesses must keep thorough records of every marketing call and provide periodic reports to the appropriate authorities.
- Call Controls: Marketing calls are only accepted from 9:00 a.m. to 6:00 p.m. Businesses must avoid misleading methods of connecting with customers to sell products or services. They must also refrain from contacting the customer again if they reject a good or service.
The Objective of the Regulation
The latest UAE regulation for telemarketing companies restricts them from marketing goods and services unethically. The regulations, which apply to all UAE-licensed businesses, including those in free zones, forbid natural individuals from using their phone lines for marketing purposes when making phone calls.
Consumer Protection
Customers who find regular telemarketing calls harassment or want to prevent unsolicited marketing calls can register their phone numbers with DNCR. If consumers get unsolicited calls in the future, they can report it to the TDRA, and the organisation will look into it and deal with the offending corporation.
What are the Penalties Under Cabinet Resolution No.57 of 2024?
The Cabinet Resolution No.57 of 2024 has the complete right to impose fines on telemarketing companies for breaking any of the aforementioned rules. These fines may include warnings, fines, license suspension or cancellation, removal from the commercial register, and termination of communications services.
Corporate Violations: Penalties for repeat offenders are harsher and can range from AED 10,000 to AED 150,000 in fines.
Individual Violations: Repeat offenders may face disconnection and restrictions in telecom service, as well as fines ranging from AED 5,000 to AED 50,000 for making unsanctioned marketing calls.
Overview of Penalties for Violations
1. Failure to Obtain Prior Approval:
– First Instance: AED 75,000
– Second Instance: AED 100,000
– Third Instance: AED 150,000
2. Marketing to Consumers on DNCR List: Up to AED 150,000
3. Deception and Misleading Marketing: AED 25,000 – AED 75,000
4. Marketing with Unregistered Numbers: Up to AED 75,000
5. Other Violations: AED 10,000 – AED 150,000
Final Words
The new UAE telecommunication regulations were released on June 28, 2024, and will become operative sixty days after they are published in the Official Gazette, which is on August 27, 2024. The new telemarketing resolutions in the UAE are a big step in the right direction towards protecting consumer rights and promoting ethical marketing.
