UAE Tightens Telemarketing Rules To Protect Consumers And Enhance Privacy

The Ministry of Economy and the Telecommunications and Digital Government Regulatory Authority (TDRA) have jointly announced new resolutions aimed at regulating marketing through phone calls in the UAE. These resolutions apply to all licensed companies operating in the country, including free zone companies, that engage in marketing products and services through phone calls or text messages. The Ministry of Economy will oversee the implementation of these resolutions in coordination with various relevant entities and authorities.

Under the new resolutions, companies are required to obtain prior approval from the competent authority to legally practice telemarketing. This authority refers to the federal or local government entity responsible for licensing or regulating economic activities. Natural persons (individuals) are prohibited from making marketing phone calls for their own products or services using their personal landline or mobile phone numbers registered with telecommunications companies in the UAE.

Image Courtesy: Berkeley Communications/Unsplash

The main purpose of these resolutions is to regulate telemarketing practices in order to maintain economic and social stability. They aim to ensure that companies adhere to the designated channels and times for marketing their products and services and to reduce unwanted marketing phone calls, thus protecting consumers' privacy and comfort. The resolutions also require companies to exercise due care and diligence in their marketing efforts, adhering to the highest standards of transparency, credibility, and integrity.

Companies engaging in phone marketing must follow certain requirements outlined in the resolutions. They should avoid using marketing means that place pressure on consumers or resort to deception and misleading tactics. Marketing phone calls should only be made between 9:00 am and 6:00 pm, and companies must not call consumers again if they refuse the product or service during the first call. Additionally, companies are not permitted to call consumers more than once a day or more than twice a week if they do not answer or end the call.

The resolutions also allow the use of automated dialling systems for marketing and advertising purposes, but only after obtaining the consumer's consent. Companies must also comply with any additional regulations issued by the Minister of Economy in coordination with the competent authority and relevant entities.

To ensure compliance, the resolutions include detailed controls applicable to licensed companies conducting marketing phone calls. These controls include obtaining prior approval from the competent authority, providing comprehensive training on professional conduct ethics for marketers, using only local phone numbers issued by authorized telecommunications companies, and providing a communication channel for consumers interested in receiving marketing information. Companies are required to maintain records of all marketing phone calls, submit periodic reports, and sign a code of professional conduct if deemed necessary by the competent authority.

The resolutions also address consumer protection by prohibiting the disclosure of personal data without consent and giving consumers the right to register in the DNCR (Do Not Call Registry) to stop receiving marketing phone calls. Consumers can file complaints regarding unwanted marketing phone calls, and the competent authority will set regulations and procedures for receiving and deciding on these complaints.

Violations of the resolutions can result in various administrative penalties. These penalties include warnings, administrative fines, suspension of activity, cancellation of licenses, and removal from the commercial register. The severity of the penalties depends on the nature and repetition of the violation. The resolutions also allow the Telecommunications and Digital Government Regulatory Authority and the Central Bank to impose penalties on natural persons and financial institutions, respectively, for violations related to marketing phone calls.

The Ministry of Economy and the Telecommunications and Digital Government Regulatory Authority have introduced new resolutions to regulate marketing practices through phone calls in the UAE. These resolutions aim to protect consumers, maintain economic stability, and ensure transparency and integrity in telemarketing activities. Companies are required to obtain prior approval, exercise due care and diligence, and adhere to specific requirements and controls outlined in the resolutions. Violations of the resolutions can result in various administrative penalties.