The UAE’s Ministry of Economy (MoE) held a media briefing to explain the country’s efforts in regulating the telemarketing of products and services. The session presented an overview of Cabinet Resolution No. 56 of 2024, which focuses on the regulation of telephone marketing, and Cabinet Resolution No. 57 of 2024, which outlines the violations and administrative penalties for actions that breach the provisions laid out.
The UAE reaffirmed its commitment to establishing a business environment that boasts economic and social stability. This includes fostering sound business practices, safeguarding consumer rights, and promoting a marketing culture that follows best practices within the corporate sector.
“Improving the working environment for companies that market their products and services over the phone is integral to supporting the UAE’s commitment to safeguarding consumer rights and protecting their privacy,” stated Safeya Hashem Al Safi, acting assistant undersecretary for the commercial control and governance sector at the Ministry of Economy.
The two cabinet decisions are a significant step in boosting the ministry’s efforts to oversee and regulate telemarketing across the UAE. The decisions aim to deter companies and individuals who contravene the rules and regulations, and facilitate the sharing of information and statistics concerning unwanted marketing calls.
Cabinet Resolution No. 56 of 2024
The Cabinet Resolution No. 56 of 2024, which pertains to the regulation of marketing through telephone calls, has clearly outlined the responsibilities of the relevant authorities. The Ministry of Economy will oversee the implementation of this decision and related ones, providing regular updates to the cabinet.
Meanwhile, the Telecommunications and Digital Government Regulatory Authority (TDRA) is in charge of managing the ‘Do Not Contact Registry’ (DNCR). The authority will work closely with relevant organizations to establish guidelines and mechanisms, share data, and enhance public awareness, as well as supervise and regulate individuals.
The Central Bank of the UAE will take charge of telemarketing for services of banks, establishments, other financial institutions, insurance companies, and other similar institutions.
On the other hand, the Securities and Commodities Authority specializes in all matters related to telemarketing calls regarding securities and commodities trading services in the UAE.
Licensing authorities in the mainland and free zones are also responsible in their respective emirates, in all matters relating to the telephone marketing of products or services in the country, except those falling under the jurisdiction of the Central Bank and the Securities and Commodities Authority.
Regulation for UAE telemarketing companies
The cabinet resolution regulates the mechanisms for the operation of companies that use telemarketing in the UAE by establishing several regulations that marketers must follow, namely:
- Do not use any marketing means that constitute unjustified pressure on the consumer to persuade them to buy the product or service offered.
- Refrain from deception and misleading calls when marketing the product or service.
- Make phone calls only between 9 am to 6 pm.
- Do not re-contact the consumer if they refuse the product or service in the first call, or if they do not reply to the call or terminate the call more than once a day, up to a maximum of twice a week.
- Automated communication systems are possibly used to market, publicize, and promote products or services provided by the company, in accordance with the provisions of this resolution.
- Companies must ask consumers whether they want to complete the phone call before starting marketing, publicity, and promoting the product or service.
Violations and penalties
The decision on administrative violations and penalties identifies 18 types of administrative violations and penalties that range in value from AED10,000 to AED150,000 depending on the type and nature of the violation.
According to the resolution, TDRA may impose administrative violations, penalties and financial fines on individuals. The resolution stipulates that any individual in the UAE who makes telemarketing calls for products or services in his name or the name of his client through a fixed or mobile phone that is licensed in the name of such will be subject to a fine of AED5,000. In addition, they will face suspending all numbers that are under the natural person’s name until the payment of the outstanding fine amount.
The penalty can reach up to AED20,000, in addition to disconnecting all numbers for three months in case such a person commits the same violation within 30 days from the date of signing of the first administrative penalty.
The penalty will rise to AED50,000 and any service from the telecommunications companies that are licensed in the state will be denied for 12 months in case this person commits the same violation within the next 30 days.
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