The Ministry of Economy and the Telecommunications and Digital Government Regulatory Authority (TDRA) have jointly introduced new resolutions governing marketing practices via phone calls. These resolutions, effective mid-August 2024 also outline violations and administrative penalties related to telemarketing activities.
These provisions apply to all licenced companies operating in the UAE, including those in free zones. They cover marketing activities conducted through phone calls, including text messages and social media platforms, aimed at promoting products or services.
Implementation of these resolutions will be overseen by the Ministry of Economy in collaboration with the TDRA, the Central Bank of the UAE, the Securities and Commodities Authority, local licencing authorities, and other relevant entities, each within its respective jurisdiction.
What Are The New Regulations
- Companies must obtain prior approval from the relevant authority to engage in telemarketing activities, with the authority being either federal or local government entities responsible for licencing or regulating economic activities.
- Individuals are prohibited from making marketing phone calls for products or services, whether in their name or on behalf of clients, using landline or mobile phone numbers registered under their names with UAE telecommunications companies.
- The resolutions aim to regulate telemarketing to uphold economic and social stability, ensure compliance with designated channels and times for marketing, and reduce unwanted marketing calls to protect consumer comfort and privacy.
- Companies engaging in telemarketing must exercise care to avoid disturbing consumers and adhere to high standards of transparency, credibility, and integrity in their marketing practices.
What About The Timings And Call Back Options
- Marketing methods should not involve pressuring consumers or employing deceptive tactics.
- Marketing phone calls are permitted only between 9am to 6pm.
- Companies must refrain from calling consumers repeatedly if they decline the product or service.
- No more than one call per day and twice a week should be made if the consumer doesn't answer or ends the call.
- Automated dialling systems can be used for marketing purposes.
- Consumers must be asked if they wish to continue the call before marketing the product or service.
- Compliance with any additional regulations set forth by the Minister of Economy after coordination with relevant authorities is mandatory.
Things Companies Should Keep In Mind
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Licenced companies must obtain prior approval from authorities to conduct marketing phone calls.
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Employees involved in marketing must undergo training on ethical conduct.
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Companies should use only local phone numbers registered under their commercial licence.
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Marketing activities data should be preserved and not destroyed prematurely.
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Consumers must be informed of call recordings at the beginning of the conversation.
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Periodic reports on marketing calls should be submitted as per authorities' specifications.
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Companies may be required to sign a code of professional conduct to ensure ethical practices.
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Marketing calls should be made during appropriate times, and callers must identify the company and purpose of the call.
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Companies must disclose the source of consumer phone numbers if requested and refrain from using unregistered numbers.
How Does This Protect The Consumers
The resolutions outline procedures to protect consumers from unwanted marketing calls, except those initiated at the consumer's request.
Consumers can lodge complaints with the relevant authority regarding unwanted marketing calls, providing necessary details and supporting documents.
The competent authority will establish rules and procedures for receiving and resolving complaints and may conduct investigations into unwanted marketing calls.
Personal data disclosure without consent or for resale by companies for marketing purposes is strictly prohibited.
Consumers have the right to register in the Do Not Call Registry (DNCR) to cease receiving marketing calls and can file complaints as per existing laws and procedures.
What About The Penalties
The TDRA, along with authorised telecommunications companies, may impose administrative penalties on individuals violating the resolution's provisions regarding marketing phone calls.
The Central Bank oversees matters related to marketing phone calls for banking, financial, and insurance services, as per regulations issued by the bank.
The resolutions specify 18 types of violations and administrative penalties imposed on companies violating the provisions of the issued resolutions, including not obtaining prior approval to engage in phone marketing from the competent authority, with administrative fines ranging from Dhs 75,000 for the first instance to Dhs 100,000 for the second, and Dhs 150,000 for the third, and a fine of up to Dhs 150,000 for marketing services or products to consumers whose numbers are listed in the DNCR, and fines ranging from Dhs 25,000 to Dhs 75,000 for engaging in deception and misleading when marketing services or products via phone calls to the consumer.
The resolutions also specify a fine of up to Dhs 75,000 for marketing products and services via phone calls using numbers not registered under the licenced company's commercial licence in the country, in addition to a range of other fines ranging from Dhs 10,000 to Dhs 150,000 for any violation of these resolutions' provisions.
What Are The Penalties For Individuals
Penalties for individuals making marketing calls include fines of Dhs 5,000 for the first violation, escalating to Dhs 20,000 and then Dhs 50,000 for subsequent violations within 30 days, along with disconnection of phone numbers and service bans.