The UAE government has introduced transformative legislation to regulate telemarketing practices through Cabinet Resolutions No. 56 and No. 57 of 2024. Effective from August 27, 2024, these rules aim to protect consumers from unwanted marketing calls while ensuring businesses operate transparently and ethically.
Scope and Applicability
The new regulations apply to all licensed companies in the UAE, including those in free zones, that engage in telemarketing activities. They also prohibit natural persons from making marketing calls using personal phone numbers.
Key Provisions
The regulations establish a “Do Not Call Registry” (DNCR) managed by the Telecommunications and Digital Government Regulatory Authority (TDRA). Consumers can register their phone numbers on the DNCR to avoid unsolicited marketing calls. Companies are prohibited from contacting consumers listed on the DNCR and must respect consumer preferences regarding marketing communications.
Obligations for Telemarketers
Companies engaging in telemarketing must:
- Obtain prior approval from the competent authority to conduct telemarketing activities.
- Provide training to their telemarketing staff on ethical conduct and the use of the DNCR.
- Use local phone numbers registered under their commercial license for telemarketing purposes.
- Maintain records of all marketing calls made, using the form provided by the competent authority.
- Respect designated calling hours (from 9:00 am to 6:00 pm).
- Disclose their identity and the purpose of the call at the beginning of each marketing call.
- Obtain explicit consent from consumers before proceeding with marketing communications.
Penalties for Non-Compliance
Cabinet Resolution No. 57 outlines strict penalties for companies and natural persons that violate the telemarketing regulations. Fines range from Dh10,000 to Dh150,000, depending on the severity of the violation. Additional sanctions may include warnings, suspension of telemarketing activities, and even the cancellation of business licenses.For individuals, penalties include fines and interruptions of phone services, escalating with repeated violations. 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.
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 prioritizes consumer interests. Companies must ensure compliance to avoid hefty fines and operational disruptions.