New UAE telemarketing rules to ensure businesses operate with transparency and integrity

New UAE Cabinet Resolution No. (56) of 2024 Concerning the Telemarketing Regulations will come into effect on 27 August. 

The telemarketing regulations aim to better manage telemarketing activities and protect consumers from unwanted marketing calls.

Martin Hayward, technology law expert at Pinsent Masons, said: “UAE companies should be familiar with some of these obligations from similar decisions, policies and initiatives issued by the Telecommunications and Digital Government Regulatory Authority (TDRA) including the Kashif initiative which allows recipients of calls to see who is contacting them before answering the calls as it reveals the caller’s information.”

Telemarketing is broadly defined under the new regulations as “phone calls made by a company or natural person to a consumer for marketing, advertising, or promoting the products of services they provide or on behalf of their representative, through a landline or mobile number, including marketing text messages and marketing messages through social media applications”.

“It is currently unclear how the telemarketing regulations will interplay with existing regulations on unsolicited communications including Administrative Decision No. 17/2022 on the approval of the policy of mobile spam marketing text messages,” said Alexandra Bertz of Pinsent Masons.

Some obligations under the telemarketing regulations include requiring businesses to obtain prior approval for telemarketing from the competent authority; providing training to company marketers including on the use of the do not call registry (DNCR) function; using local phone numbers registered under the commercial licence of the company; and maintaining and storing a record of marketing phone calls.

UAE telemarketers must only call customers between 9am and 6pm; get confirmation from customers on whether they want to continue the phone call or not before starting to promote the product or service provided; and not put unjustified pressure on the consumers to convince them to purchase the products or services.

Consumers can grant consent, and refrain from granting consent, to the disclosure of their personal data and can register on the DNCR to avoid receiving marketing phone calls. 

Companies failing to comply with the telemarketing regulations could face fines of up to Dh150,000 (US$40,840). Other administrative penalties include warnings; complete or partial suspension of telemarketing activity for a period of time; and potentially the revocation of the license and cutting of communication services.

Further requirements covering telemarketing activities are expected when the executive resolutions to the telemarketing regulations are issued.