The UAE has introduced new regulations to control telemarketing practices, which will be effective from mid-August 2024. The UAE’s Ministry of Economy, in coordination with the Telecommunication and Digital Government Regulatory Authority (TDRA), has established specific rules, penalties, and procedures which telemarketing firms and consumers must know. The new law is aimed at reducing unwanted marketing calls and protecting consumer privacy.
Purpose of the New Telemarketing Regulations:
These new sets of regulations mainly focus on making companies abide by defined channels and timings for marketing their products and services. This will help in reducing unwanted marketing phone calls, saving consumer privacy, and increasing their comfort.
Telemarketing – Permissible Hours:
The new rules imply that telemarketing calls will only be allowed between 9 am and 6 pm. This will prevent consumers from having disruptions outside these hours, allowing them to enjoy some form of privacy.
Rules on Repeated Calls:
If consumers say no to a certain service or product in the first call, then this decision needs to be respected by the telemarketers. The rules do not allow more than one call to the same consumer on the same day. In case the call is not answered or the consumer hangs up, the calling telemarketing team can call once a day and no more than twice a week.
Consent to Continue the Call:
Telemarketers must immediately ask the consumer if they would like to continue with the call before beginning their marketing or advertising pitch. This allows the consumer to choose whether or not to continue with marketing calls before they even start. Automated dialing systems for marketing can be used, but this consent requirement does not exclude them from this rule.
Consumer Rights to File Complaints:
Consumers have the right to file complaints when receiving unwanted marketing calls. Complaints must be filed with the competent authority, detailing the complainant’s name and phone number, the telemarketer’s name, the telephone number that actually called the complainant, and documentation evidencing receipt of the call.
Right to Stop Receiving Marketing Calls:
The Do Not Call Registry (DNCR) allows consumers to apply for registration in order to avoid receiving marketing calls. They may also complain against any company for violating this regulation.
Prohibition Against Coercing Customers:
Telemarketing executives cannot use high-pressure tactics to convince consumers to buy a particular product or service. The executives also cannot deceive or mislead the consumer in any form regarding the products or services that they are marketing.
Coverage of the Law:
The new legislation applies to those organizations that market their products and services through calls, whether these are made by the employees of the company or the company itself. They also include marketing from landline and mobile numbers, as well as marketing text messages and social media applications.
Use of Company-Registered Phones Only:
Telemarketing calls are to be made only from local numbers issued to licensed and authorized telecommunication companies, and such numbers shall be registered in the name of the licensed company’s commercial license. The firm shall provide interested consumers with the means of communication and maintain a register of all marketing calls according to the form presented by the competent authority.
Penalties Imposed Upon Individuals for Violation:
The rule bars individuals from making marketing calls from phone numbers from which a complaint has been lodged and established to be registered in their name. The violators will be fined Dh5,000 in addition to the disconnection of all their registered numbers pending the payment of the fine. However, repeat offenders face more stringent penalties: a fine of Dh20,000 and a three-month disconnection for a second violation, and a Dh50,000 fine plus a one-year stoppage of service from licensed telecommunication firms in the country for a third violation within 30 days.
Fines for Telemarketing Companies:
The new laws enumerate 18 types of violations and fines, including administrative fines starting from Dh10,000 up to Dh150,000. The penalties cover a wide range of violations, including failure to get prior approval for phone marketing, using unregistered numbers, and fraud.
Staff Training:
Telemarketing companies would be required to offer a comprehensive course of training to marketers regarding their responsibilities and code of conduct concerning marketing calls so that the marketers could follow the new rules and maintain the rights of the consumers.
Possible Cancellation of License in Case of Violation:
In respect of infringement, firms can be liable to various sanctions, such as warnings, administrative fines, suspension of activity, cancellation of licenses, and removal from the commercial register. If the infringement is committed within six months, the competent authority can apply the maximum penalty without gradation.
Prohibition on Selling Customer Data:
Disclosing and selling consumers’ personal information without proper consent has a strict prohibition. Thus, it will avoid any misuse of consumer data by reprocessing.
Exemptions and Approvals:
Calls originated or initiated at the customer’s request will exempt the punishment for telemarketing firms. Permission or approval in advance is required by the firm to conduct the telemarketing business from the concerned federal or local government agencies.
Applicability to Mainland and Free Zone Companies:
The law, once revised, shall affect all licensed companies in the UAE, including those working in free zones, to make telemarketing regulated across the board.
Record Keeping and Monitoring:
The telemarketing companies must record all marketing calls and are bound to present periodical reports to the concerned authority. Records of marketing calls cannot be destroyed before the concerned period. All calls related to banking and insurance products would come within the purview of the Central Bank of the UAE.
Monitoring and Enforcement:
The regulations in their various applications shall be monitored by the Ministry of Economy, in coordination with TDRA, the Central Bank of the UAE, the Securities and Commodities Authority, and the respective local licensing authorities.
How HHS Lawyers in Dubai Can Help
The new regulations on telemarketing in the UAE aim to achieve consumer privacy, reduce unwanted calls, and ensure ethics and transparency in marketing. These new regulations at times become burdensome for companies to follow. Professional legal consultation and assistance provided by HHS Lawyers in Dubai will help your company abide by these regulations, avoid penalties, and ensure good relations with the consumer. Feel free to reach out to us today and learn how we can help you with all of your telemarketing compliance needs in the UAE.
