UAE introduces stringent regulations and fines for telemarketers, aiming to protect residents from aggressive cold calling.
The UAE’s new telemarketing regulations will take effect on August 27, 2024, according to the UAE Government. These regulations, announced in early June, impose specific restrictions on telemarketers to protect residents from unwanted and aggressive sales tactics.
Under the new rules, telemarketers are allowed to call customers only between 9 am and 6 pm. If a resident declines a service or product during the initial call, the telemarketer is prohibited from calling them again on the same day. Telemarketers are also forbidden from using persuasive tactics to pressure customers into purchasing products or services.
Violators of these regulations face significant financial penalties, ranging from Dh5,000 to Dh150,000, depending on the severity and frequency of the offenses. The fines increase substantially with each repeated violation, as outlined under Cabinet Resolution No. (57) of 2024.
Key Penalties and Fines:
- Unapproved Telemarketing Activities: Companies that do not obtain prior approval to conduct telemarketing activities will face fines of Dh75,000 for the first offense, Dh100,000 for the second, and Dh150,000 for the third.
- Failure to Train Marketers: Companies that do not provide comprehensive training on the code of conduct for marketers will be fined between Dh10,000 and Dh50,000.
- Unregistered Numbers: Using numbers not registered under a company’s commercial license will result in fines ranging from Dh25,000 to Dh75,000. Companies must also maintain a log of all marketing calls, with failure to do so potentially leading to penalties up to Dh50,000 for repeat offenses.
- Calling Numbers on the Do Not Call Registry (DNCR): Telemarketers who call numbers listed on the DNCR for marketing purposes could be fined up to Dh150,000.
- Recording of Calls: It is mandatory for companies to inform consumers at the start of a call if it is being recorded. Failure to comply could result in fines between Dh10,000 and Dh30,000. Not recording marketing calls with consumers can lead to penalties between Dh10,000 and Dh50,000.
- Monthly Reporting Requirements: Companies must provide periodic reports to the competent authority about marketing calls made within a month of the report date. Non-compliance could result in a fine of up to Dh30,000.
- Call Identification: Telemarketers must identify the company and the purpose of the call at the beginning. Failing to do so could lead to penalties up to Dh30,000 for repeated offenses.
- Source Disclosure: Companies must disclose the source of consumers’ phone numbers and data upon request, with fines up to Dh75,000 for failing to do so.
- Pressuring Consumers: Penalties up to Dh50,000 may be imposed for pressuring consumers, with higher fines for repeat offenses.
- Fraud and Misrepresentation: Engaging in fraud or misrepresentation during telemarketing can lead to fines between Dh25,000 and Dh75,000.
- Calling Outside Permitted Hours: Calls made outside the permitted hours of 9 am to 6 pm could result in fines starting at Dh10,000, increasing to Dh50,000 for repeat offenses.
- Repeated Calls: Repeated calls to a consumer who has already refused the product or service will incur fines ranging from Dh10,000 to Dh50,000.
- Excessive Calling Attempts: Calling back more than once a day or more than twice a week without response can lead to fines up to Dh50,000 for repeat offenses.
- Unauthorized Data Use: Disclosing or trading consumers’ personal data without consent for marketing purposes can result in a fine of Dh50,000 for the first offense and up to Dh150,000 for subsequent violations.
- Unauthorized Telemarketing Services: Using telemarketing services in violation of the new resolution will attract fines up to Dh50,000.
- Personal Number Misuse: If an individual makes a marketing call using a phone number licensed under their name, a fine of Dh5,000 will be imposed, and all numbers registered under their name may be cut off until payment for the first offense. Subsequent violations could lead to a Dh20,000 fine and a three-month suspension of all numbers under the individual’s name, escalating to a Dh50,000 fine and a 12-month service ban for a third offense within 30 days.
These measures are part of the UAE government’s initiative to ensure residents are not overwhelmed by cold calls, addressing frequent complaints about intrusive telemarketing practices.
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