Revamping Telemarketing: UAE Unveils Stricter Telemarketing Regulations

Summary of New Resolutions on Telemarketing Regulation

The Ministry of Economy and the Telecommunications and Digital Government Regulatory Authority (TDRA) have enacted new resolutions to govern telemarketing practices via phone calls across the UAE. These regulations apply to all licensed entities, including those operating within free zones, and are designed to promote economic and social stability by regulating telemarketing activities. The implementation of these resolutions will be overseen by the Ministry of Economy, in coordination with the TDRA, the Central Bank of the UAE, the Securities and Commodities Authority, local licensing authorities, and other relevant entities, each within its respective jurisdiction.

Permitted Practices Under the Resolution include:

The resolution introduces specific allowances to modernize and streamline telemarketing practices while safeguarding consumer preferences and consent:

– Transparent Communication: The call must begin with clear identification of the caller, the organization they represent, and the purpose of the call. Only upon receiving affirmative consent from the consumer can the marketing or advertising message be relayed.

•  Mandatory Consumer Consent: These provisions are designed to balance effective marketing strategies with consumer rights to privacy and choice, ensuring that telemarketing practices adhere to high standards of transparency and integrity.
• Initial Consent Requirement: Before proceeding with any marketing or advertising content during a call, companies must first ask consumers if they wish to continue. This ensures that the communication is consensual, respecting the consumer’s choice and time.

– Use of Automated Dialling Systems: Companies are permitted to employ automated dialling systems for the purpose of marketing and advertising their products or services. This technology enables businesses to reach a larger audience efficiently but must be used responsibly to avoid inundating consumers with unwanted communications.

Mandated Changes for Licensed Companies Engaging in Phone Marketing

To comply with the new Resolution regulating telemarketing, licensed companies must implement several significant changes to their operations. These are aimed at ensuring ethical practices, protecting consumer privacy, and enhancing the overall transparency of their telemarketing activities.

• Obtain Necessary Approvals: Companies must secure prior approval from the competent authority before engaging in any phone marketing activities. This step ensures that all telemarketing practices are recognized and monitored under the regulatory framework.
• Training and Ethical Standards: Comprehensive training programs must be established for all marketing personnel. These should focus on the ethical conduct of marketing calls, including respect for consumer privacy, adherence to approved calling hours, and prohibition of deceptive practices.
• Use of Authorized Phone Numbers: Only local phone numbers issued by authorized telecommunications companies and registered under the company’s commercial license should be used for telemarketing. This requirement prevents misuse of unregistered or unauthorized numbers in marketing efforts.
• Establishment of Communication Channels: Companies must provide a dedicated communication channel for consumers who opt in to receive marketing information. Marketing calls should only target these consumers, respecting those who have not expressed interest or those listed in the DNCR.
• Record-Keeping: A meticulous record of all marketing phone calls must be maintained, adhering to the format provided by the competent authority. These records are crucial for compliance audits and must be preserved until the end of the period specified by the authority.
• Transparency in Communication: During each marketing call, companies must inform the consumer that the call is being recorded. This notification should occur at the beginning of the conversation to ensure transparency and consent.
• Data Protection: Information regarding marketing activities conducted through phone calls must be carefully managed and protected. Companies are prohibited from destroying this data before the expiry of the retention period set by the competent authority.

Administrative Penalties for Telemarketing Violations introduced by the Resolution:

The resolution delineates 18 categories of violations along with corresponding penalties for breaching the stipulations. Under the newly implemented resolutions regulating telemarketing practices, both companies and individuals are subject to stringent penalties for non-compliance. These penalties are designed to enforce adherence to the regulations and are graduated based on the severity and recurrence of the infractions.

1. Penalties for Companies
   • Fines:
     • First Violation: Companies failing to obtain prior approval for telemarketing activities face fines starting from AED 75,000.
     • Repeated Violations: Subsequent infractions can attract fines up to AED 100,000 for a second violation and AED 150,000 for the third.
     • Marketing to DNCR Listed Consumers: A fine of up to AED 150,000 for targeting consumers who have opted out via the Do Not Call Registry.
   • Operational Restrictions:
     • Suspension: For severe or repeated violations, companies may face a suspension of their telemarketing activities, ranging from a minimum of 7 days to a maximum of 90 days.
     • Cancellation: Continued non-compliance can lead to the cancellation of the telemarketing license and removal from the commercial register.
     • Telecommunications Restrictions: In cases of severe violations, telecommunications services may be disconnected, and the company’s registered phone numbers can be deactivated.
     • Additional Requirements: Companies are required to submit periodic reports and may need to adhere to a code of conduct specified by the competent authority.
2. Penalties for Individuals
   • Fines:
     •  Initial Fine: Individuals making unauthorized marketing calls face a fine of AED 5,000.
     • Subsequent Violations: If the same violation is repeated within 30 days, the fine increases to AED 20,000. A further repeat within 30 days escalates the fine to AED 50,000.
   • Service Restrictions:
     • Temporary Disconnection: After the first repeat violation, an individual’s telecommunications services may be disconnected for up to 3 months.
     • Extended Ban: For persistent violations, individuals may be banned from obtaining any telecommunications services for up to 12 months.
     • Compliance and Oversight: Individuals are required to comply with the same standards set for companies, including the prohibition of deceptive practices and adherence to the specified calling times.

These penalties reflect the serious commitment of the Ministry of Economy and TDRA to regulate and monitor telemarketing practices rigorously. They aim to balance the marketing interests of businesses with the privacy and rights of consumers, ensuring a respectful and lawful marketing environment.

Conclusion

The new regulations are set to enhance consumer protection, ensure transparency and integrity in telemarketing practices, and promote a balanced and regulated approach to marketing communications. The coordinated effort by multiple Regulatory bodies underscores the importance of these measures in safeguarding consumer interests while supporting legitimate business practices in the UAE’s dynamic market environment.