Cabinet Resolutions: No. 56 and No. 57 of 2024 For Telemarketing
The UAE Ministry of Economy has taken steps to regulate products and services telemarketing.
Based on two Cabinet resolutions: No. 56 of 2024 regarding the regulation of telemarketing, and No. 57 of 2024 regarding administrative violations and penalties related to actions contrary to the provisions of Cabinet Resolution No. 56 of 2024.
What are the New Telemarketing Guidelines ?
Safia Hashem Al Safi, the Acting Assistant Undersecretary for Commercial Control and Governance at the Ministry of Economy, clarified the guidelines for companies engaged in products and services telemarketing within the country.
These guidelines include:
Prior Approval: Companies must obtain prior approval from the relevant authority to engage in marketing activities.
Comprehensive Training:
Marketers should receive comprehensive training on professional conduct ethics during marketing calls.
Including adherence to the “Do Not Call Registry” (DNCR) principles.
Use of Local Phone Numbers:
Companies must use local phone numbers issued by licensed telecommunications companies in the UAE.
These numbers should be registered under the company’s trade license.
Targeted Communication: Marketing calls should only be made to consumers who have expressed interest in receiving marketing information.
Compliance with DNCR: Companies must not call numbers listed in the DNCR for marketing purposes.
Record Keeping:
All telemarketing operations should be documented according to a template provided by the relevant authority.
Records must be maintained to ensure minimal data about marketing activities conducted via phone calls.
Call Recording: Marketing calls should be recorded, and consumers should be notified of this recording at the beginning of the call.
Code of Professional Conduct:
Companies must adhere to a code of professional conduct, as specified by the relevant authority (if issued), ensuring ethical practices in their telemarketing activities.
Telemarketing Timings: Marketing calls should occur between 9:00 AM and 6:00 PM.
Caller Identification: Companies must identify themselves and state the purpose of the call at the beginning of marketing calls.
Source Disclosure: Companies should disclose the source of obtaining consumer phone numbers and data if requested by authorities.
Use of Registered Numbers: Companies must not use unregistered or unauthorized phone numbers for marketing calls.
Penalties
The newly introduced regulations in the UAE aim to curb the intrusive nature of telemarketing and protect consumers’ privacy.
Here are the penalties for violating these guidelines:
- Fines: Companies that violate the provisions of the issued resolutions can face fines of up to Dh150,000.
These fines escalate based on the severity of the violation.
For instance:- First instance: Administrative fine of Dh75,000.
- Second instance: Administrative fine of Dh100,000.
- Third instance: Administrative fine of up to Dh150,000.
- Additionally, there’s a fine for marketing services or products to consumers whose phone numbers are in the “Do Not Call Registry” (DNCR) list.
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- Warnings: Companies may receive warnings as an initial response to violations.
- Suspension of Activities: In more serious cases, companies could face partial or total suspension of their activities.
This suspension can last from a minimum of seven days up to a maximum of ninety days. - License Cancellation: The authorities have the power to cancel a company’s license if it repeatedly violates the regulations.
- Denial of Telecommunication Services: Companies may be denied telecommunication services within the UAE for up to one year.
These measures underscore the UAE’s commitment to maintaining economic stability, ensuring transparent marketing practices, and respecting consumers’ comfort and privacy.
So, companies engaged in telemarketing should exercise due care and adhere to the highest standards of integrity and transparency.
