The UAE government will implement new rules to tighten telemarketing regulations starting August 27, with fines of up to AED150,000 for violators, aiming to protect consumers from unwanted and deceptive calls.
Last June, the UAE announced the Cabinet Resolution Nos. 56 and 57 of 2024 detailing the obligations of companies and the penalties for violators. This applies to all licensed companies in the UAE, including those in free zones, whose employees advertise or promote their products and services through phone calls, including marketing text messages, and on social media.
The resolutions stipulate that companies must obtain prior approval from the competent authority before engaging in telemarketing activities.
The Telecommunications and Digital Government Regulatory Authority, the Central Bank of the UAE, the Securities and Commodities Authority, local licensing authorities, and relevant entities, each according to its jurisdiction, were tasked to oversee the implementation of the new regulation.
It also prohibits conducting marketing calls through an employee’s personal number, which should be made only through the phone number registered under the company.
To ensure the customers’ comfort and privacy, telemarketing calls can only be made from 9:00 AM to 6:00 PM.
Marketing calls must be initiated only after the consumer has been asked if they wish to continue. If unanswered, calls should not be made more than once a day or twice a week, and customers should not be called again if they declined the product or service the first time it was offered.
Consumers can register with the DNCR (Do Not Call Registry) to stop receiving marketing calls and file complaints according to the relevant legislation and procedures.
Moreover, companies must practice transparency when engaging in telemarketing activities, such as refraining from misleading and deceptive promotion, and identifying the company and the purpose of the call in the beginning of the conversation.
The resolutions outline 18 violations and penalties for companies, including:
- Fines from AED75,000 to AED150,000 for not obtaining approval for phone marketing.
- Fines up to AED150,000 for marketing to numbers on the DNCR.
- Fines from AED25,000 to AED75,000 for deceptive marketing.
- Fines up to AED75,000 for using unregistered numbers for marketing.
For individuals:
- AED5,000 fine and disconnection of phone lines for first violations.
- AED20,000 fine and three-month disconnection for repeated violations.
- AED50,000 fine and a 12-month ban on telecom services for further violations.
