Ministry of Economy reviews regulatory legislation for telemarketing companies in UAE
The Ministry of Economy (MoEc) held a media briefing to explain the UAE’s efforts in regulating the telephone marketing of products and services in the country. The session presented an overview of Cabinet Resolution No.56 of 2024, which focuses on the regulation of telephone marketing, and Cabinet Resolution No.57 of 2024, which outlines the violations and administrative penalties for actions that breach the provisions laid out in Decision No.56.
The decision of administrative violations and penalties identifies 18 types of administrative violations and penalties that range in value from AED10,000 to 150,000 depending on the type and nature of the violation.
During the briefing, the Ministry of Economy reviewed the commitments set out in Resolution No. 56 of 2024 for licensed companies in the country when making marketing telephone calls, the most notable of which are:
• Obtaining prior approval for the conduct of marketing activity from the competent authority.
• Providing comprehensive training to the company’s marketers on professional ethics of conduct when making marketing calls with the consumer, which includes the basic principles of using a “do not contact register” (DNCR).
• Using local telephone numbers issued by licensed telecommunications companies in the country. These numbers must be registered under the licensed company in the country.
• Finding a channel of communication for consumers interested in receiving marketing information, and marketing contact should only be made with these consumers.
• Not contacting consumers whose numbers are registered in DNCR.
• Maintaining the record of all marketing telephone calls made, in accordance with the form prepared by the competent authority, to ensure that the minimum data and information on marketing activities carried out through telephone marketing are provided and are not destroyed until after the expiration of the period specified by the competent authority.
• Recording of marketing phone calls, with the need to notify the consumer of such registration at the start of the call.
• Companies’ adherence to the Code of Professional Conduct, in accordance with the model prepared by the competent authority in the event that they consider the issuance of this Code, in order to ensure minimum ethical practices in carrying out telemarketing activities.
• Adhering to the deadlines for making telephone calls – from 9 am to 6 pm.
• The Company’s commitment to define its identity its identity and the purpose of communication at the beginning of the marketing phone call.
• Disclosure of the source of telephone numbers and consumer data if requested by the competent authorities.
• Not using unregistered or owned numbers of the licensed company in the country when making marketing telephone calls.
The cabinet resolution regulates the mechanisms for the operation of companies whose products and services are marketed by telephone in the country by establishing several regulations that marketers must follow, namely:
• Do not use any marketing means that constitute unjustified pressure on the consumer to persuade him/her to buy the product or service offered.
• Refrain from deception and misleading calls when marketing the product or service.
• Making phone calls must be made between 9 am to 6 pm.
• Do not re-contact the consumer if he/she refuses the product or service in the first call, or if he does not reply to the call or terminate the call more than once a day, up to a maximum of twice a week.
• Automated communication systems are possibly used to market, publicize and promote products or services provided by the company, in accordance with the provisions of this resolution.
• Consumers must be asked whether they want to complete the phone call before starting marketing, publicity and promoting the product or service provided.
The Cabinet Resolution No.56 of 2024, which pertains to the regulation of marketing through telephone calls, has clearly outlined the responsibilities of the relevant authorities. The Ministry of Economy will oversee the implementation of this decision and related ones, providing regular updates to the Cabinet.
The Telecommunications and Digital Government Regulatory Authority (TDRA) is in charge of managing the ‘Do Not Contact Register’ (DNCR) and will work closely with relevant organizations to establish guidelines and mechanisms, share data, and enhance public awareness, as well as to supervise and regulate individuals.
The Central Bank of the UAE is concerned with all matters related to telephone marketing for the services of banks, establishments, other financial institutions, insurance companies and related occupations in the country.
On the other hand, the Securities and Commodities Authority specialises in all matters related to marketing calls regarding securities and commodities trading services in the country. Licensing authorities in the mainland and free zones are also responsible in their respective emirates, in all matters relating to the telephone marketing of products or services in the country except those falling under the jurisdiction of the Central Bank and the Securities and Commodities Authority.
Safeya Hashem Al Safi, Acting Assistant Undersecretary for the Commercial Control and Governance Sector at the Ministry of Economy, confirmed that the UAE, following its wise leadership’s directives, remains committed to establishing a business environment that boasts economic and social stability. These include fostering sound business practices, safeguarding consumer rights, and promoting a marketing culture in line with best practices within the corporate sector.
Al Safi explained that the provisions of the Cabinet Resolutions will apply to all licensed companies in the country including those in free zones, which market products and services through marketing phone calls or one of their employees. The provisions will also apply to individuals, where natural persons are prohibited from telemarketing of products or services provided in their name or on behalf of their clients, via a fixed or mobile telephone number licensed by the licensed telecommunications companies in the country.
Dr. Maryam Butti Al Suwaidi, CEO of SCA, highlighted that SCA will supervise promotional phone calls made by authorised companies during direct marketing of their services or products. Additionally, it will monitor the activities of companies that provide marketing services on behalf of these authorised companies, ensuring their compliance with the regulations outlined in the Cabinet Resolution through various oversight methods. SCA will also establish a platform for the general public, including investors and community members, to file complaints if they receive unsolicited marketing calls that violate the regulations set by the Cabinet Resolution or any other regulations issued by SCA.
She added that SCA has issued a circular to all businesses, highlighting the importance of obtaining its approval before marketing their own services or the services offered by their clients via telephone. This measure aims to identify a list of approved companies authorised to engage in telemarketing and aid SCA in monitoring their adherence to regulations and standards.
Eng. Mohammed Al Ramsi, Deputy Director-General of the Telecommunications Sector at TDRA, said, “Cabinet Resolutions have been issued to establish clear boundaries and regulations for companies engaged in telemarketing.
“At TDRA, we have launched the ‘Do Not Call Register’ initiative introduced as ‘DNCR’, which empowers recipients with the right to opt out of receiving marketing calls from specific sectors or all sectors.
According to the resolution, TDRA may impose administrative violations and penalties and financial fines on natural persons (individuals).
The resolution stipulates that any natural person who makes marketing phone calls for products or services in his name or the name of his client through a number of a fixed or mobile phone that is licensed in the name of such, will be subject to a fine of AED5,000 and in addition to suspending all numbers of fixed or mobile phones that are registered under the natural person’s name until the payment of the outstanding fine amount.
The penalty shall be increased to AED20,000, in addition to cutting all numbers of fixed or mobile phones that are registered under the natural person’s name for three months in case such person commits the same violation within 30 days from the date of signing of the first administrative penalty. It will become AED50,000 and any service from the telecommunications companies that are licensed in the State will be denied for 12 twelve months in case this person commits the same violation within the next 30 days.
Source: Wam.ae
