The Ministry of Economy and the Telecommunications and Digital Government Regulatory Authority (TDRA) have announced a new resolution regulating telemarketing practices in the country.
The new rules, coming into effect from mid-August, stipulate that companies should obtain prior approval from the competent authority to legally practice telemarketing.
The resolution also prohibits individuals from initiating marketing phone calls for products or services they offer in their name or on behalf of their clients, using a landline or mobile phone number registered under their names at telecommunications companies in the UAE.
The provisions apply to all licensed companies in the UAE, including free zones companies, engaging in marketing products and services through marketing phone calls initiated by the company or its employees to the consumer for marketing, advertising, or promoting products or services they offer or on behalf of their clients, using a landline or mobile phone number. This includes marketing text messages and marketing messages through social media applications.
What does the resolution state?
- The resolution requires companies and authorised employees to refrain from using any marketing means that place pressure on the consumer.
- Marketing calls should not deceive or mislead the consumer.
- Marketing calls can only be made between 9am and 6pm
- If the consumer refuses the product or service in the first call, he should not be called again.
- A consumer should not be called more than once a day and no more than twice a week if they do not answer the call or end it.
What does the resolution allow?
The resolution allows the use of automated dialling systems for marketing and advertising products or services. It also requires asking the consumer if they wish to continue the phone call before starting the marketing and advertising for the offered product or service.
What should licensed companies do?
Licensed companies should obtain prior approval from the competent authority to engage in phone marketing.
Moreover, they should provide comprehensive training for the company’s marketers on professional conduct ethics of marketing calls.
Companies should only use local phone numbers issued by authorised telecommunications companies in the country and registered under the licensed company’s commercial licence in the country.
Resolutions also include providing a communication channel for consumers interested in receiving marketing information, making marketing calls only to those consumers, not calling to market products or services to consumers whose numbers are listed in the DNCR (do not call registry), and keeping a record of all marketing phone calls of the company, based on the record form provided by the competent authority.
The regulations also require that licensed companies provide data and information about their marketing activities conducted through marketing phone calls and not destroy them before the end of the period specified by the competent authority, recording marketing phone calls while notifying the consumer of this recording at the beginning of the call.
What are the fines?
The resolution specifies 18 types of violations and administrative penalties imposed on companies violating the provisions of the issued resolutions.
Fines for violations such as not obtaining prior approval to engage in phone marketing from the competent authority range from AED75,000 ($20,400) for the first instance to AED100,000 for the second, and AED150,000 for the third.
There is a fine of up to AED150,000 for marketing services or products to consumers whose numbers are listed in the DNCR.
The fine for engaging in deception and misleading when marketing services or products via phone calls to the consumer range from AED25,000 to AED75,000.
The resolutions also stipulate a fine of up to AED75,000 for marketing products and services via phone calls using numbers not registered under the licensed company’s commercial licence in the country, in addition to a range of other fines ranging from AED10,000 to AED150,000 for any violation of these resolutions’ provisions.
Moreover, if an individual makes marketing phone calls for products or services in their name or on behalf of their clients, using a landline or mobile phone number licensed in their name, they will be subject to a financial fine of AED5,000 and disconnection of all landline or mobile phone numbers registered in their name until the fine is paid.
The penalty escalates to AED20,000 and disconnection of all landline or mobile phone numbers registered in their name for three months if the same violation is committed within 30 days from the date of imposing the first administrative penalty, and AED50,000 and a ban on obtaining any services from licensed telecommunications companies in the country for 12 months if the same violation is committed within 30 days from the date of imposing the second administrative penalty.
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