UAE Sets New Regulatory Standards For Telemarketing Companies

The Ministry of Economy (MoEc) recently held a media briefing to discuss the UAE's new regulations on telephone marketing. The session detailed Cabinet Resolution No.56 of 2024, which governs telephone marketing practices, and Cabinet Resolution No.57 of 2024, outlining violations and penalties for non-compliance.

Cabinet Resolution No.56 of 2024 sets out several commitments for licensed companies engaging in telemarketing. These include obtaining prior approval from the competent authority, providing comprehensive training on professional ethics, and using local telephone numbers issued by licensed telecommunications companies. Companies must also maintain records of all marketing calls and notify consumers if calls are being recorded.

Additionally, companies are required to adhere to specific call times, from 9 am to 6 pm, and must disclose their identity and the purpose of the call at the beginning. They are prohibited from contacting consumers whose numbers are registered in the Do Not Contact Register (DNCR) and must not use unregistered or unauthorised phone numbers.

Cabinet Resolution No.57 of 2024 identifies 18 types of administrative violations with penalties ranging from AED10,000 to AED150,000 based on the nature of the violation. For instance, natural persons making unauthorised marketing calls face fines starting at AED5,000, with penalties increasing for repeated offences within specified timeframes.

The resolution also stipulates that any individual making marketing calls through a licensed number will be fined AED5,000 initially. If the same violation occurs within 30 days, the fine increases to AED20,000 along with a three-month suspension of all registered phone numbers. A third violation within another 30 days results in a AED50,000 fine and a one-year denial of services from licensed telecommunications companies.

Oversight and Implementation

The Ministry of Economy will oversee the implementation of these resolutions and provide regular updates to the Cabinet. The Telecommunications and Digital Government Regulatory Authority (TDRA) manages the DNCR and collaborates with relevant organisations to establish guidelines and enhance public awareness.

The Central Bank of the UAE oversees telephone marketing related to financial services, while the Securities and Commodities Authority (SCA) handles matters related to securities and commodities trading services. Licensing authorities in mainland and free zones manage telemarketing regulations within their respective jurisdictions.

Commitment to Ethical Practices

Safeya Hashem Al Safi, Acting Assistant Undersecretary for Commercial Control at MoEc, emphasised that these measures aim to foster sound business practices and protect consumer rights. "The UAE remains committed to establishing a business environment that boasts economic and social stability," she stated.

Dr. Maryam Butti Al Suwaidi, CEO of SCA, highlighted that SCA will supervise promotional phone calls made by authorised companies during direct marketing activities. SCA will also monitor companies providing marketing services on behalf of authorised firms to ensure compliance with regulations.

Consumer Protection Measures

SCA has issued a circular requiring businesses to obtain approval before engaging in telemarketing activities. This helps identify approved companies authorised for telemarketing and aids in monitoring adherence to standards.

Eng. Mohammed Al Ramsi, Deputy Director-General at TDRA, noted that clear boundaries have been established for telemarketing activities through these resolutions. "We have launched the ‘Do Not Call Register’ initiative introduced as ‘DNCR’, empowering recipients with the right to opt out," he said.

The new regulations aim to create a balanced approach between promoting business activities and protecting consumer rights in the UAE's evolving market landscape.

With inputs from WAM