Navigating the New UAE Telemarketing Regulations: A Comprehe

Introduction

The landscape of telemarketing in the UAE has been transformed with the introduction of Cabinet Resolution No. (56) of 2024 and Cabinet Resolution No. (57) of 2024. These regulations, which shall be effective from 27th August 2024, mark a significant evolution in the legal framework governing telemarketing practices. They have a clear focus on enhancing consumer protection, promoting transparency, and enforcing ethical standards in marketing communications.

Understanding the New UAE Telemarketing Regulations

These regulations govern all aspects of telemarketing activities within the UAE. It applies to all companies, including those operating within free zones, that engage in marketing through phone calls, text messages, or social media platforms.

Detailed Obligations for Companies

Under the new regulation, companies engaging in telemarketing must adhere to a range of obligations designed to promote transparency, accountability, and ethical conduct.

Obtain Necessary Approvals: Before engaging in any telemarketing activities, companies must secure approval from the relevant Competent Authority. This approval process is a critical control mechanism that allows the government to monitor and regulate telemarketing activities across the country. Without this approval, companies cannot legally engage in telemarketing.
Comprehensive Training for Marketers: Companies are required to provide their telemarketing staff with thorough training that covers the ethical aspects of telemarketing, including how to interact with consumers respectfully and the correct use of the Do Not Connect Register (DNCR). The emphasis on training reflects the government's commitment to ensuring that telemarketing is conducted professionally and in accordance with the highest ethical standards.
Use of Registered Local Numbers: All telemarketing communications must be conducted using local phone numbers that are registered under the company's commercial license. This requirement not only ensures transparency but also facilitates regulatory oversight, as it allows authorities to track and verify the source of marketing communications.
Record Keeping and Reporting: Companies must maintain detailed records of all marketing calls and submit regular reports to the Competent Authority. These records must include specific information as outlined by the authority and be preserved for a period specified by the regulation. This requirement ensures that there is a clear audit trail for all telemarketing activities, which is essential for regulatory enforcement and consumer protection.
Respecting Consumer Preferences and the DNCR: One of the most significant provisions of the regulation is the mandatory use of the DNCR. Companies are prohibited from making marketing calls to any consumer listed on the DNCR. Additionally, companies must inform consumers if their calls are being recorded and must obtain their consent before proceeding with any marketing pitch. This provision is crucial for ensuring that consumers have control over their interactions with marketers.

Specific Controls on Telemarketing Practices

The regulation imposes stringent controls on how telemarketing calls should be conducted, reflecting a commitment to protecting consumers from intrusive or unethical practices.

Timing Restrictions on Calls: Telemarketing calls are restricted to between 9:00 AM and 6:00 PM. This limitation is designed to prevent disturbances outside of normal business hours and ensures that marketing activities do not infringe on personal time. Companies must strictly adhere to this timeframe to avoid penalties.
Limitations on Repeated Calls: The regulation prohibits companies from repeatedly contacting consumers who have declined an offer or failed to respond to a call. Specifically, a company cannot call a consumer more than once a day or more than twice a week if the consumer does not answer or ends the call.
Transparency and Consumer Consent: At the beginning of every marketing call, companies must clearly identify themselves, state the purpose of the call, and ask the consumer whether they wish to continue the conversation. Additionally, companies must disclose the source of the consumer's contact information if requested by the Competent Authority.

Key Administrative Penalties for Companies

Administrative penalties under this resolution are categorised based on the severity of the violation and whether it is a repeated offence. The penalties include:

Warnings: For minor infractions, a warning may be issued to the offending company. This serves as a formal notice that the company’s practices are not in compliance and must be corrected.
Fines: Fines are the most common form of penalty and vary depending on the nature of the violation:
1. First Offence:Companies are given an opportunity to correct their practices with a financial penalty that serves as a deterrent.
2. Second Offence: If the same violation occurs again, the fines increase significantly, reflecting the company’s failure to address the initial warning.
3. Third Offence: Persistent non-compliance results in the highest fines, emphasizing the seriousness of adhering to the regulations.
Suspension of Activities:For more severe or repeated violations, the resolution allows for the suspension of a company’s telemarketing activities. This can last from 7 days to 90 days, depending on the nature and frequency of the violations. A suspension not only impacts revenue but also affects the company’s relationship with its clients and customers.
Cancellation of License: In extreme cases, where a company continuously flouts the regulations, the Competent Authority may cancel the company’s telemarketing license altogether. This is the most severe penalty and effectively shuts down the company’s ability to conduct telemarketing in the UAE.
Cutting Communication Services:Additionally, the resolution allows for the cutting off of communication services, such as telephone numbers used for telemarketing, especially in cases of serious violations. This measure is intended to prevent further unauthorized telemarketing activities.
Penalties for Natural Persons:Individuals who engage in unauthorized telemarketing activities can also face penalties, including fines and the suspension of their phone services. In cases of repeated violations, individuals may be banned from accessing telecommunication services for a specified period.
Appeal Process:The resolution provides a mechanism for companies and individuals to appeal against penalties. Appeals must be filed within 15 days of receiving the penalty notice, and the Competent Authority is required to respond within 30 days.

Violation Description	First Time Penalty (AED)	Second Time Penalty (AED)	Third Time Penalty (AED)
Failure to obtain prior approval to practice telemarketing activities from the Competent Authority	75,000	100,000	150,000
No provision of comprehensive training to marketers on ethical conduct and DNCR use	10,000	25,000	50,000
Using phone numbers not registered under the company's commercial license	25,000	50,000	75,000
Calling consumers whose numbers are on the DNCR	50,000	75,000	150,000
Failure to keep a register of all marketing phone calls	10,000	25,000	50,000
Failure to record marketing phone calls	10,000	25,000	50,000
Failure to notify the consumer of call recording at the start of the call	10,000	20,000	30,000
Failure to provide periodic reports to the Competent Authority	10,000	20,000	30,000
No identification of the company and purpose of the call at the beginning of the marketing call	10,000	20,000	30,000
Failure to disclose the source of consumer phone numbers and data when requested by the Competent Authority	25,000	50,000	75,000
Using marketing methods that exert unreasonable pressure on the consumer	10,000	25,000	50,000
Using deception or misleading tactics in telemarketing	25,000	50,000	75,000
Making telemarketing calls outside the designated period (9:00 AM to 6:00 PM)	10,000	25,000	50,000
Calling back after the consumer rejects the product or service on the first call	10,000	25,000	50,000
Calling back more than once a day or twice a week if the consumer does not answer or ends the call	10,000	25,000	50,000
Using automatic calling systems in violation of the regulation	10,000	25,000	50,000
Failing to ask the consumer’s permission to continue the call before marketing	10,000	20,000	30,000
Disclosing or trading consumer personal data without consent	50,000	75,000	150,000

Practical Steps for Compliance

To ensure compliance with these new regulations, companies should take several proactive steps:

Conduct an Internal Audit: Companies should review their current telemarketing practices to identify any areas that may not comply with the new regulations. This audit should include a thorough examination of how consumer data is managed, how marketing calls are conducted, and whether the company's record-keeping practices meet the regulatory requirements.
Implement Comprehensive Training Programs: Training is essential for ensuring that all employees involved in telemarketing understand the regulations and know how to comply with them. This training should cover the ethical aspects of telemarketing, the importance of respecting consumer preferences, and the specific procedures for using the DNCR.
Establish Internal Controls: Companies should establish internal controls to monitor compliance with the regulations. This might include regular reviews of marketing call records, periodic audits of training programs, and the implementation of systems to ensure that all marketing calls are made within the permitted hours and in accordance with the consumer's preferences.
Engage with Regulatory Authorities: Companies should maintain open communication with the relevant regulatory authorities to ensure they stay informed about any updates to the regulations and to seek guidance on compliance issues. Engaging with the authorities can also help companies anticipate potential challenges and address them proactively.

Conclusion

The new telemarketing regulations introduced by Cabinet Resolutions No. (56) and No. (57) of 2024 represent a significant shift in how telemarketing is conducted in the UAE. These regulations are designed to protect consumer rights, promote ethical business practices, and ensure that telemarketing contributes positively to the broader economic and social stability of the country.

For companies, compliance with these regulations is not just a legal obligation—it is an opportunity to build trust with consumers and to demonstrate a commitment to ethical marketing practices. By understanding the requirements of the regulations and implementing the necessary compliance measures, companies can continue to use telemarketing as a valuable tool for reaching customers while also respecting their rights and preferences.