Your Guide to Reporting Telemarketing Calls under UAE Regulations and Penalties

September 11, 2024by Fidha Anzar0

In a move to protect consumers from intrusive marketing practices, the UAE government has introduced stringent new telemarketing regulations effective August 27, 2024. This article delves into the key provisions, penalties, and features like the Do Not Call Registry (DNCR) and ‘Kashif’ caller ID that are shaping the future of telemarketing in the UAE. 

Understanding Telemarketing Regulations in the UAE 

In the UAE, telemarketing practices are strictly regulated. The UAE’s Ministry of Economy has introduced the Do Not Call Registry (DNCR) to protect residents from unsolicited telemarketing calls. This registry is a directory of phone numbers for consumers who wish to avoid such calls. During a recent media briefing, officials emphasized that licensed companies must adhere to the commitments outlined in Resolution No. 56 of 2024 which prohibits contacting consumers whose numbers are listed in the DNCR. 

The Telecommunications and Digital Government Regulatory Authority (TDRA), responsible for launching the DNCR, will collaborate with relevant organizations to establish guidelines, share data, and enhance public awareness about the registry. Mohammed Al Ramsi, TDRA’s deputy director-general for the telecommunications sector, highlighted that the initiative empowers individuals to opt out of receiving marketing calls from specific sectors or all sectors. Furthermore, UAE laws mandate comprehensive training for marketers on ethical conduct, which includes the principles of utilizing the DNCR effectively. 

The UAE government has introduced strict new regulations for telemarketing practices through Cabinet Resolution No. 56, effective August 27, 2024. Key restrictions include: 

Calling Hours: Telemarketers can only make calls between 9 AM and 6 PM. If a consumer rejects the offer in the first call, they cannot be called again that same day. 

Prohibited Tactics: Telemarketers are prohibited from using any means that place undue pressure on consumers to persuade them to buy products or services. Deception and misleading marketing practices are also forbidden. 

Personal Numbers Banned: Individuals are prohibited from making marketing calls using their personal fixed or mobile numbers, even if offering products or services they represent. Telemarketing calls are only allowed from local numbers registered under a company’s commercial license. 

Do Not Call Registry: Consumers can register their phone numbers in DNCR to avoid receiving unsolicited marketing calls. Companies are prohibited from contacting consumers listed in the DNCR. 

Obtaining Prior Approval: Companies licensed in the UAE must obtain prior approval from the Competent Authority to practice telemarketing activities.  

Maintaining Call Records: Companies are required to maintain records of all marketing phone calls made, following the form prepared by the Competent Authority, and not destroy them until after the expiry of the specified period .

Recording Phone Calls: Marketing phone calls must be recorded, with the necessity of informing the consumer of this recording when the call begins. 

Submitting Periodic Reports: Companies must submit periodic reports, as determined by the Competent Authority, concerning the marketing phone calls made within one month from the date the report is due.  

Signing a Code of Professional Conduct: Companies may be required to sign a code of professional conduct, in accordance with the form prepared by the Competent Authority, to ensure the minimum level of ethical business practices in their telemarketing activities. 

Disclosing the Source of Consumer Data: Companies must disclose the source of obtaining consumer phone numbers and data if requested by the Competent Authority. 

Penalties for Non-Compliance 

Penalties for Individuals 

    • Using unregistered numbers for telemarketing: AED 75,000 fine 
    • Using personal mobile numbers for telemarketing: 
    • 1st offense: AED 5,000 fine and potential service disconnection 
    • Repeat offenses: Fines up to AED 50,000, possible ban on obtaining telecom services 

Administrative Violations 

    • 18 types of violations with penalties ranging from AED 10,000 to AED 150,000, depending on the violation 

Penalties for Telemarketing Companies 

    • Violating cold callers and telemarketing firms: Fines from AED 5,000 to AED 150,000 
    • Failure to obtain prior approval to operate: 
    • 1st offense: AED75,000 fine 
    • 2nd offense: AED100,000 fine 
    • Subsequent offenses: AED150,000 fine 
    • Failure to provide adequate training on code of conduct for marketers: AED10,000 to AED50,000 penalty 

These penalties ensure compliance with the new telemarketing regulations and protect consumers from unwanted marketing calls in the UAE. 

How to report marketing calls from personal numbers  

If you receive an unsolicited marketing call from a personal mobile number in the UAE, you can easily report the violation by sending an SMS to 1012. Simply type “REPORT” followed by the 10-digit mobile number (e.g., “REPORT 05XXXXXXXX”) and send it to the designated number. 

This reporting mechanism is in line with the UAE’s new telemarketing regulations, outlined in Cabinet Resolution No. 56 of 2024. The resolution prohibits telemarketers from using personal numbers for sales calls and requires them to display a company name when contacting consumers. Residents who receive calls from unregistered numbers or without any company identification can promptly report the violation through this SMS-based system. 

The Ministry of Economy is responsible for overseeing the implementation of this resolution and providing regular updates to the Cabinet. By reporting violations, consumers contribute to enforcing these regulations and help create a more transparent and ethical telemarketing environment in the UAE. 

Understanding the ‘Kashif’ Caller ID Feature in the UAE 

When receiving calls, have you noticed company names appearing on your phone screen instead of regular phone numbers? This is thanks to the ‘Kashif’ feature introduced by the UAE’s Telecommunications and Digital Government Regulatory Authority (TDRA) in 2022. The ‘Kashif’ service automatically displays the name of the calling company and the number. This empowers consumers by allowing them to identify the caller and decide whether to answer the call or not. By minimizing anonymous or misleading calls, ‘Kashif’ enhances transparency and trust in telecom services. All private companies and institutions in the UAE must use the ‘Kashif’ feature when contacting customers. Initially implemented in the banking sector, it now applies to all registered private companies, enhancing transparency in telecom communications. The TDRA emphasizes that while ‘Kashif’ improves caller identification, customers should still be cautious and avoid sharing personal information over the phone. This initiative aims to enhance customer trust and satisfaction in telecom services throughout the UAE. 

Collaboration Among Regulatory Authorities 

Article 8 of Cabinet Resolution No. 56 of 2024 highlights the necessity for collaboration between the Ministry, the Telecommunications and Digital Government Regulatory Authority (TDRA), and relevant Competent Authorities in addressing unwanted marketing calls. It requires these entities to share information, data, and statistics regarding such calls while safeguarding personal data during these exchanges. The article also calls for establishing effective systems for the Do Not Call Registry (DNCR) and managing related complaints. Furthermore, the authorities are responsible for conducting joint educational campaigns to inform consumers about their rights and the ethical standards expected from telemarketing companies. This cooperative strategy is designed to strengthen regulatory enforcement and reduce the prevalence of unsolicited marketing calls. 

Competent Authority Responsibilities 

Article 9 of the Cabinet Resolution No. 56 of 2024 outlines the roles of different authorities in regulating telemarketing activities. The Ministry is responsible for overseeing the resolution’s enforcement and must provide periodic updates to the Cabinet. The Central Bank handles telemarketing related to banking and financial services, while the Securities and Commodities Authority (SCA) oversees calls regarding securities and commodities trading. Local authorities also play a crucial role by overseeing telemarketing practices that do not fall under the Central Bank or SCA’s jurisdiction. This clear allocation of responsibilities is designed to strengthen regulatory oversight and ensure the effective enforcement of telemarketing regulations throughout the UAE. 

These regulations necessitate significant changes in business practices. Companies must review their telemarketing operations, provide staff training, and implement systems to manage compliance. Failing to do so risks hefty fines and operational disruptions. The UAE aims to create a respectful and transparent telemarketing environment that prioritizes consumer interests by implementing these rules. As a business, ensuring full compliance with the new regulations is crucial to avoid penalties and maintain consumer trust.

Disclaimer

The opinions expressed in this blog are those of the respective authors. ATB Legal does not endorse these opinions. While we make every effort to ensure the factual accuracy of the information provided in our blogs, inaccuracies may occur due to changes in the legislative landscape or human errors. It is important to note that ATB Legal does not assume any responsibility for actions taken based on the information presented in these blogs. We strongly recommend verifying information from official sources and consulting with professional advisors to ensure its accuracy and relevance to your specific circumstances.

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Fidha Anzar

Fidha Anzar is a law student at Middlesex University in Dubai, who is passionately driven by her commitment to justice and social change. Fidha is actively engaged in researching and writing about legal topics, aiming to enrich the legal community with insightful discourse.

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