UAE Unveils New Telemarketing Rules: What Businesses Need to Know

New telemarketing regulations in the UAE emphasize consumer protection and ethical business practices, requiring companies to adhere to strict guidelines and penalties to ensure transparency and respect for consumer privacy.

By Giulia Interesse

The United Arab Emirates (UAE) introduced a set of new regulations to closely monitor telemarketing activities, as specified in Cabinet Resolutions Nos. 56 and 57 of 2024. Effective from August 27, 2024, these measures are designed to protect consumers from unsolicited marketing calls while ensuring that businesses adhere to principles of integrity and transparency.

Supervised by the Ministry of Economy in partnership with other agencies, the regulations underscore the necessity of obtaining consent before initiating telemarketing. Unauthorized marketing calls are strictly prohibited, with the new rules setting rigorous standards for conduct and transparency in these activities.

Non-compliance with these regulations carries severe penalties, including fines up to AED 150,000 (US$40,838) and the potential revocation of business licenses. The overarching aim is to safeguard consumer rights, enhance the business environment, and ensure that marketing practices respect privacy and consumer comfort.

In this article, we delve into the details of these regulations, their impact on businesses, and their expected role in transforming the telemarketing landscape in the UAE.

Scope of the new UAE telemarketing regulations

Under the new UAE regulations, telemarketing is broadly defined as any phone call made by a company or individual to a consumer for the purposes of marketing, advertising, or promoting products or services. This definition also extends to marketing text messages and promotional messages sent via social media platforms, whether through a landline or mobile number.

The new regulations are comprehensive, covering all businesses licensed in the UAE, including those operating within free zones, and apply stringent controls to ensure ethical and transparent telemarketing practices.

Key obligations for businesses

Cabinet Resolution No. 56 of 2024 sets forth several critical obligations that businesses must adhere to before engaging in telemarketing activities within the UAE, which include:

• Approval and training: Businesses are required to obtain official approval from the Telecommunications and Digital Government Regulatory Authority (TDRA) prior to conducting any telemarketing activities. Additionally, they must train their telemarketing staff on ethical conduct and the proper use of the “Do Not Call” Registry.
• Local phone numbers: All marketing calls must be made using local phone numbers that are registered under the company’s commercial license with a licensed telecommunications provider. This ensures transparency and accountability in telemarketing practices.
• Record-keeping and reporting: Companies must maintain detailed records of all marketing calls. These records are to be regularly submitted to the relevant authorities for monitoring purposes. Additionally, businesses must inform consumers at the beginning of the call that it is being recorded and must respect consumer privacy and preferences throughout the interaction.
• Call controls: Telemarketing calls are restricted to the hours between 9:00 a.m. and 6:00 p.m. Companies must avoid misleading or coercive practices and must respect consumers’ decisions if they choose to reject a product or service. Moreover, businesses are required to cease contact if a consumer declines further communication.
• Transparency in communication: Businesses must clearly identify themselves and the purpose of their communication during telemarketing calls. They are also obliged to disclose the source of the consumer’s contact information if requested and to confirm whether the consumer wishes to proceed with the call.

Consumer protection

The regulatory framework is part of the UAE government’s broader efforts to enhance consumer rights and privacy. Key initiatives include:

• Do Not Call Registry (DNCR): Introduced in September 2022, the DNCR allows consumers to opt-out of receiving telemarketing calls, thus protecting their privacy. Businesses must refrain from contacting individuals who are registered on the DNCR.
• Kashif service: Launched by the TDRA in January 2022, this service enables consumers to identify the origin of incoming calls, helping them distinguish between legitimate and potentially fraudulent calls. By the end of 2022, all private companies were required to register their phone numbers with Kashif.

Consumers also have the right to grant or withhold consent for the use of their personal data for marketing purposes.

These measures ensure that consumer privacy is respected and that unwanted marketing communications are minimized.

Penalties for non-compliance

Cabinet Resolution No. 57 specifies stringent penalties for companies and individuals who breach the telemarketing regulations. Businesses that contact consumers listed on the DNCR face the following fines:

• First violation: AED 50,000 (US$13,613.04) fine
• Second violation: AED 75,000 (US$20,419.5) fine
• Third and subsequent violations: AED 150,000 (US$ 40,839.11) fine

Additional penalties may include warnings, suspension of telemarketing activities, and even the revocation of business licenses, depending on the severity and frequency of the violations.

Individuals who use personal phone numbers for telemarketing can face a fine of AED 5,000 (US$1,361.30) and have all their numbers suspended until the fine is paid. If a repeat offense occurs within 30 days, the penalties become more severe, including a AED 50,000 (US$13,613.04) fine and a one-year ban on services from licensed telecommunications providers.

Implications of the new regulations for UAE companies

The new UAE telemarketing regulations impose significant obligations on companies operating within the country, including those in free zones. Businesses must now ensure compliance by securing prior approval from the relevant authorities, training their marketers on ethical practices, and using only local phone numbers registered under their commercial license. Additionally, they are required to maintain detailed records of all telemarketing activities and restrict calls to the hours between 9 a.m. and 6 p.m.

Companies will need to reassess and possibly overhaul their telemarketing strategies to meet these new standards, ensuring both legal compliance and consumer trust. Specifically, telemarketers must now obtain consent from individuals before making promotional calls and are advised not to contact numbers listed in the DNCR without prior approval.

Conclusion

All in all, the UAE’s updated telemarketing regulations reflect a strong commitment to safeguarding consumer privacy and promoting ethical business practices. These new rules represent a significant step toward enhancing consumer protection by setting clear guidelines and enforcing strict penalties for non-compliance. The government’s goal is to establish a transparent and respectful telemarketing environment that prioritizes consumer interests.

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