New Telemarketing Rules in UAE Full List of Fines Explained as Laws go into Effect from August 27
Penalties will increase substantially for each repeated violation
The UAE’s new telemarketing regulations are set to come into effect from August 27, as per the UAE Government.
The authority announced new laws for telemarketers in early June 2024, putting certain restrictions on them such as calling customers only from 9 am to 6 pm; not calling residents again the same day if he/she rejects the service or product in the first call; and preventing telemarketers from using any measures or tactics to persuade customers to buy products or services.
Cold callers and telemarketing firms will face financial penalties ranging between Dh5,000 and Dh150,000 for violating the laws.
The financial penalties increase if the violation is repeated. All the administrative penalties have been listed in three categories – first, second and third time. Penalties will increase substantially for repeating the violation each time, under Cabinet Resolution No. (57) of 2024.
Companies that fail to obtain prior approval to practice telemarketing activities will be fined Dh75,000 for the first time, Dh100,000 for the second time and Dh150,000 for the third time. Entities that fail to provide comprehensive training to marketers on the code of conduct will face a Dh10,000 to Dh50,000 penalty.
People who call through numbers that are not registered under the commercial licence of the company will be fined from Dh25,000 to Dh75,000. The companies will be required to keep a register for all marketing phone calls made, according to the form prepared by the authority, and failure to maintain it could result in a penalty of up to Dh50,000 for repeat violations.
These initiatives have been taken by the government to ensure that residents are not bombarded with cold calls, taking into consideration the complaints about telemarketing.
Individuals who call customers whose numbers are included in the DNCR (Do not call registry) for marketing purposes will face fines up to Dh150,000.
It is also mandatory for the company or individual to notify the consumer at the beginning if recording the call, and failure to follow these rules would result in a financial penalty between Dh10,000 to Dh30,000.
Additionally, those who fail to record marketing phone calls with consumers will face penalties ranging between Dh10,000 and Dh50,000.
The companies are also required to provide periodical reports to the competent authority concerning the marketing phone calls that were made within a month of the date of the report. For failure to comply with this rule, the company will face an administrative penalty of up to Dh30,000.
The caller is required to identify the company and the purpose of the call at the beginning and failure to do so could result in an administrative penalty of up to Dh30,000 for repeat violations.
In case of failure to disclose the source from which phone numbers and data of the consumer were obtained when requested, the authority could levy up to Dh75,000 financial penalty.
In addition, up to Dh50,000 fine will be levied for repeat violations for pressurising the consumer.
A penalty between Dh25,000 to Dh75,000 will be imposed for fraud and cheating while phone marketing the product or service to the consumer.
Since cold callers are required to make phone calls from 9 am to 6 pm only, violators could face a Dh10,000 fine, and up to Dh50,000 penalty for repeat violations.
The fine for repeated calls when the consumer refuses the product or service in the first call will range between Dh10,000 and Dh50,000.
Callers who ask no questions about the consumer’s desire to complete the phone call before starting their marketing services will be penalised with fines ranging between Dh10,000 and Dh30,000.
In addition, the authority will also penalise cold callers for calling back, when the customer does not answer, more than one time per day and more than two times per week. Cold callers could be fined up to Dh50,000 for repeat offences.
Companies disclosing the personal data of the consumer without consent, or trading such data for the purpose of reprocessing in order to be used in marketing phone calls will be fined Dh50,000 for the first time and as high as Dh150,000 for a third violation.
Callers who use telemarketing services provided by the company in violation of provisions of this resolution will face fines up to Dh50,000.
Finally, if a natural person makes a marketing phone call for products and services through a phone number that is licensed under his/her name, a fine of Dh5,000 will be imposed. All the numbers of fixed or mobile phones that are registered under his/her name will also be cut off until payment, for a first violation.
In addition, a second violation will lead to financial penalty of Dh20,000 in addition to cutting all numbers under his/her name for 3 months.
The penalty increases to Dh50,000 and he/she will be prevented from getting any service from the telecommunication companies in the UAE for 12 months in case the person commits the same violation for a third time within 30 days.
Source: Khaleejtimes
