Regulations on Telemarketing Activities in UAE

28 September 2024

Glory Sony

The United Arab Emirates (UAE) has taken a strong stance in protecting consumer rights and regulating telemarketing activities. With the rapid development and advancement of technology and the sudden growth and expansion of digital communication channels, telemarketing has become a common method for businesses to reach potential customers. However, the UAE government, through its various regulatory bodies, has introduced regulations to ensure that these practice does not violate privacy, security, or consumer rights.

Regulatory Bodies

1. Telecommunications and Digital Government Regulatory Authority (TDRA): this body regulates the telecommunications sector in the United Arab Emirates. It is primarily responsible for regulating the rules that telemarketing companies must follow, particularly as they relate to the use of telecom services for marketing.

2. National Media Council (NMC): regulates media coverage on various topics, including telemarketing. They set content standards and the ads send through telemarketing must adhere to them.

3. Ministry of Economy: This department enforces consumer protection laws on a number of issues, including telemarketing practices, and ensures that consumer rights are respected in all business activities.

Telemarketing regulatory laws

1. Opt-In Consent: UAE laws require companies to obtain consent from individuals before sending them marketing communications. This includes telemarketing phone calls, SMS marketing, and email marketing. Companies cannot contact customers randomly without their consent.

2. National Do Not Call Registry: TDRA introduced the National Do Not Call Registry to empower consumers that who can call them. People can register their numbers on this list, which means they don't want to receive unsolicited calls. Telemarketing companies must consult this registry at all times so that they do not contact registered individuals.

3. Penalties for Non-Compliance: Companies that violate the telemarketing laws in the UAE face significant penalties. This can range from heavy fines to suspension of business licenses. Repeat violations may result in more severe consequences such as criminal liability or permanent suspension of operations.

4. Data Protection Laws: The UAE takes data protection very seriously. According to the Federal Data Protection Act (PDPL), businesses involved in telemarketing must ensure that personal data is handled lawfully, securely and transparently. Personal data collected for telemarketing purposes cannot be shared with third parties without their consent and must be handled according to the highest data security standards.

5. Advertising Content Regulations: telemarketing content must comply with UAE Advertising Laws. This includes preventing false advertising, ensuring that claims are substantiated, and avoiding content that is considered harmful or inappropriate in the cultural and social context of the UAE.

 6. Ramadan and Public Holidays Restrictions: Telemarketing companies should follow certain guidelines when contacting customers during religious holidays such as Ramadan or holidays. The nature of conversations and messages should respect the subject and companies are encouraged to limit their marketing activities to these times.

 Consumer Rights and Protections

The UAE has a strong consumer protection framework with a strong focus on protecting consumers from fraud. In relation to telemarketing, consumers have a number of rights, including:

•       Right to privacy: Consumers have the right to expect that their personal information will not be used for marketing purposes. Unwanted calls, unless they give their consent.

•       Clarity and transparency: Telemarketing communications must clearly state the purpose of the call and provide accurate information about the product or service being offered.

•       Right to Opt Out: Customers can request to be removed from the marketing lists at any time, and companies must approve this request.

•       Right to complain: If consumers believe that a company has violated telemarketing laws, they can file a complaint with the relevant body which regulates it, such as the TDRA or the Ministry of Economy.

Applicability:

The rules apply to all companies licensed in the UAE, including companies engaged in telemarketing in free zones. Individuals cannot make marketing calls using their numbers or numbers licensed by UAE telecommunications companies.

Prior Approval and Compliance:

Companies must obtain prior approval from the relevant authority to engage in telemarketing activities. Employees involved in telemarketing should be trained in ethical behavior and the principles of using the do not call register. Marketing communications should be customer oriented. Calls must be made from local phone numbers registered with authorized phone providers. Telephone marketing communications should be recorded and customers informed of the recording at the beginning of the conversation. Companies must keep records of marketing contacts and submit regular reports to the authorities. Respect the privacy and wishes of the customer, avoid contacting those peoples registered in “Do Not Call Registry” or peoples decline the calls.

Timings and Penalties:

Telemarketers can call customers only 09.00 am to 6 pm in the evening. When a customer rejects a service or product on the first call, they cannot be contacted again the same day. Violators face administrative penalties, including a warning and a fine of up to 150,000 dirhams.

The UAE government has introduced the Cabinet Resolution no.56 & 57 of 2024. It came into effective from 27 August 2024, it aim to protect consumers from unwanted marketing contacts and ensure that businesses operate transparently.

Key Provisions of Cabinet Resolution No. 56 of 2024

Objective and Scope

The new rules aim to strike a balance between consumer privacy and business needs by facilitating the marketing of products and services by phone calls. These rules apply to all companies licensed in the United Arab Emirates, including those in free zones, this rule prohibits individuals from making marketing calls using a personal phone number.

Obligations for companies

Approval and Training: Companies must obtain prior approval from the Telecommunications and Digital Governance Regulatory Authority (TDRA) before engaging in telemarketing. They are also required to educate and train their marketers on professional etiquette and the use of the Do Not Call Registry (DNCR).

Local Number: All calls relating to the marketing must be made using local phone numbers registered under the company’s commercial license.

Record-Keeping and reporting: Companies must maintain detailed records of all marketing calls and submit regular reports to the concerned authorities.

Call Controls: Marketing calls are restricted to between 9.00am and 6.00pm. Companies must avoid misunderstanding and unnecessary pressure tactics. If the consumer rejects a product or service, the company should not contact them again. In addition, companies can call customers no more than once a day and twice a week if the call goes unanswered.

Consumer Protection

Consumers can register their phone numbers with the DNCR to avoid unwanted commercial calls. But if they continue to receive unwanted calls, they can lodge a complaint with the TDRA to investigate and take action against the offending company.

Penalties under Cabinet Resolution No. 57 of 2024

1. Penalties for non-Compliance

The resolution provides some strict penalties for companies and individuals who violates the laws of telemarketing.  Fines amounts are mentioned in the cabinet resolution no. (57) Concerning the Administrative Violations and Penalties Imposed on Companies that Violate the Provisions of Cabinet Resolution No. (56) Of 2024. 4, 5 and 6 and its clauses mentions the fine amount.

Depending on the severity and frequency of violations, other penalties may include warnings, bans on telemarketing, and even revocation of business licenses. For individuals, penalties include fines and disconnection of phone service, increasing with the number of violations.

2. Grievance

 Grievances can be made against penalties within 15 days by the companies and individuals, and the relevant authority must decide on the grievance within 30 days, ensuring a fair and transparent process.

Conclusion

The UAE's Cabinet Decision No. 56/2024 represents a significant step towards protecting consumers from unsolicited telemarketing calls. By establishing clear rules and regulations, the UAE aims to create a more balanced and fair marketplace for both businesses and consumers.