New Telemarketing Regulations in the UAE: Detailed Breakdown of Fines and Compliance Requirements

New Telemarketing Regulations in the UAE: Detailed Breakdown of Fines and Compliance Requirements

The UAE government has introduced stringent new telemarketing regulations effective from August 27, 2024, aimed at protecting consumers from intrusive marketing practices. These laws, under Cabinet Resolution No. (57) of 2024, outlines strict guidelines and hefty fines to ensure companies adhere to ethical telemarketing practices. Businesses in the UAE must comply with these regulations or face severe financial penalties.

Key Provisions and Fines:

  1. Approval Requirement:
    • Penalties:
      • 1st Violation: AED 75,000
      • 2nd Violation: AED 100,000
      • 3rd Violation: AED 150,000
    • Details: Companies must secure prior approval before conducting telemarketing activities. Failing to do so can result in escalating fines.
  2. Training Requirements:
    • Penalties:
      • AED 10,000 to AED 50,000
    • Details: Companies must provide comprehensive training to telemarketers on the code of conduct. Non-compliance attracts substantial penalties.
  3. Use of Unregistered Numbers:
    • Penalties:
      • AED 25,000 to AED 75,000
    • Details: Telemarketers using numbers not registered under the company’s commercial license will face significant fines.
  4. Do Not Call Registry (DNCR) Violations:
    • Penalties:
      • Up to AED 150,000
    • Details: Calling numbers listed in the DNCR for marketing purposes is strictly prohibited and heavily penalized.
  5. Recording and Reporting Requirements:
    • Penalties:
      • AED 10,000 to AED 50,000
    • Details: Companies must notify consumers if calls are recorded and keep a detailed record of marketing calls. Failure to comply results in penalties.
  6. Consumer Consent and Call Timing:
    • Penalties:
      • AED 10,000 to AED 50,000
    • Details: Telemarketing calls can only be made between 9 am and 6 pm. Repeated calls after a consumer has declined a service or product are also penalized.
  7. Personal Data Protection:
    • Penalties:
      • 1st Violation: AED 50,000
      • 3rd Violation: AED 150,000
    • Details: Unauthorized sharing or trading of personal data for marketing purposes is strictly forbidden.
  8. Telemarketer Conduct:
    • Penalties:
      • AED 10,000 to AED 30,000
    • Details: Telemarketers must clearly identify themselves, the company, and the purpose of the call. Failure to adhere to these guidelines can lead to penalties.
  9. Natural Person Violations:
    • Penalties:
      • 1st Violation: AED 5,000
      • 2nd Violation: AED 20,000
      • 3rd Violation: AED 50,000
    • Details: Individuals making marketing calls using their own numbers without proper registration will face fines, disconnection of services, and potential bans.

Compliance Strategy:

Businesses should immediately audit their telemarketing practices to ensure compliance with these new regulations. Regular training, transparent data management, and adherence to approved calling times are essential to avoid hefty fines.

For more detailed information, refer to the official UAE government resources and legal advisors to navigate these regulations effectively.

Sources & Further Reading:

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