The United Arab Emirates has introduced new telemarketing regulations to safeguard consumers and establish ethical standards for the industry. Cabinet Decision No. 56/2024, which took effect on August 27, 2024, outlines the rules for telemarketing activities. Additionally, Cabinet Decision No. 57/2024 specifies penalties for non-compliance with these regulations. Here is a summary of the key points and penalties
Key Provisions of Cabinet Decision No. 56/2024
1. Definition of Telemarketing:
- Telemarketing includes phone calls, marketing SMS, and social media messages promoting products or services (Article 1).
- Establishment of the “Do Not Call Register (DNCR) ” to protect consumers from unsolicited communications.
2. Regulation Goals:
- Organize telemarketing activities.
- Enhance consumer privacy by reducing unwanted calls (Article 2).
3. Licensing and Applicability:
- Applicable to all UAE-licensed companies, including those in free zones.
- Individuals must not conduct telemarketing without proper licensing (Article 3).
4. Obligations of Companies:
- Obtain prior approval for telemarketing activities.
- Use locally registered phone numbers.
- Maintain records of telemarketing calls.
- Respect the DNCR and provide ethical marketing training to employees (Article 4).
5. Telemarketing Controls:
- Ban on misleading or high-pressure tactics.
- Restrict calls to between 9:00 AM and 6:00 PM.
- Prohibit calls to numbers listed in the DNCR (Article 5).
6. Consumer Protection:
- Consumers can register in the DNCR, file complaints, and expect their data to remain confidential (Article 6).
7. Penalties for Violations:
- Penalties range from warnings to the cancellation of licenses, depending on the severity (Article 7).
8. Enforcement and Cooperation:
- Authorities will collaborate to enforce the regulations and educate consumers and companies (Article 8).
9. Oversight by Relevant Authorities:
- The Ministry, Central Bank, and other local authorities are responsible for overseeing telemarketing activities (Article 9).
10. Additional Regulations:
- The Minister may issue additional decisions to prevent avoidance of these regulations (Article 10).
Administrative Penalties Under Cabinet Decision No. 57/2024
1. Failure to Obtain Approval:
- Fines start at AED 75,000 for the first offence and rise to AED 150,000 for repeat offences (Article 4/1).
2. Inadequate Training:
- Fines begin at AED 10,000 for the first violation, escalating to AED 50,000 (Article 4/2).
3. Unregistered Numbers:
- Using unregistered phone numbers incurs fines ranging from AED 25,000 to AED 75,000 (Article 4/3).
4. Contacting DNCR-Listed Numbers:
- Fines range from AED 50,000 for the first violation to AED 150,000 for subsequent violations (Article 4/5).
5. Record-Keeping Failures:
- Failure to maintain records leads to fines from AED 10,000 to AED 50,000. Similar penalties apply for not recording or notifying about calls (Articles 4/6, 4/7, and 4/8).
6. Failure to Disclose Information:
- Not introducing the company or the source of phone numbers incurs fines starting at AED 10,000, escalating to AED 30,000 (Articles 4/11 and 4/12).
7. Unethical Marketing Practices:
- Aggressive tactics, deception, or calling outside allowed hours result in fines between AED 10,000 and AED 75,000 (Articles 5/1 to 5/6).
8. Excessive Follow-up Calls:
- Excessive or improper follow-ups incur fines from AED 10,000 to AED 50,000 (Articles 5/4 and 5/5).
9. Unauthorized Disclosure of Data:
- Disclosing consumer data without consent leads to fines ranging from AED 50,000 to AED 150,000 (Article 6/4).
10. Individual Penalties:
- First-time offenders face AED 5,000 fines and phone suspension. Repeat offences escalate to AED 50,000 fines and restrictions on obtaining telecom services (Article 3/2).
These new regulations aim to modernize telemarketing practices in the UAE, protect consumer rights, and ensure compliance through strict enforcement measures and penalties.
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