UAE Cold Calling Fines: Up to AED 500,000 Under Telemarketing

As of July 13, 2024, the UAE government will enforce new telemarketing laws to protect consumers from unwanted and intrusive marketing calls. These regulations come in response to numerous complaints from residents overwhelmed by persistent cold calls. The government has introduced strict guidelines that all telemarketers must follow to address these concerns. Failure to comply with these rules could result in significant financial penalties.

Understanding the New Telemarketing Rules

1. Permitted Calling Hours

Telemarketing calls are now strictly limited to the hours between 9 am and 6 pm. This time frame ensures that residents are not disturbed during inappropriate hours, allowing them to go about their day without being interrupted by unsolicited calls.
Any calls made outside this permitted time range will be subject to penalties, starting from AED 10,000 and potentially increasing to AED 50,000 for repeat offenses.

2. Single Call Limitation

If a consumer rejects a service or product during the first call, telemarketers are prohibited from calling them back on the same day. This rule is designed to prevent harassment and ensure that consumers feel respected and heard.
Violators of this rule will face fines starting from AED 10,000, with potential increases to AED 50,000 for repeated violations.

Detailed Fines and Penalties on Cold Calling

1. Fines for Unauthorized Telemarketing

Companies must obtain prior approval from the relevant authorities before engaging in telemarketing activities. Without this approval, companies will be fined AED 75,000 for the first offense. Subsequent violations will result in fines of AED 100,000 and AED 150,000 for the second and third offenses, respectively.
This requirement ensures that all telemarketing activities are monitored and regulated to protect consumer interests.

2. Penalties for Using Unregistered Numbers

Telemarketers required to use phone numbers that are registered under the company’s commercial license. Using unregistered or unauthorized numbers can lead to fines ranging from AED 25,000 to AED 75,000, depending on the frequency and severity of the violation.
This rule is intended to maintain transparency and accountability in telemarketing practices.

3. Record-Keeping Requirements

Companies engaged in telemarketing must maintain a detailed log of all marketing calls made. This log should include information such as the date, time, and purpose of each call. Failure to keep accurate records could result in fines of up to AED 50,000 for repeated offenses.
This requirement ensures that companies can provide evidence of compliance with the regulations if questioned by authorities.

Protecting Consumer Privacy

1. Mandatory Call Recording Notification

Telemarketers must inform consumers at the beginning of a call if the conversation is being recorded. This transparency is crucial for building trust with consumers. Failure to provide this notification can result in fines between AED 10,000 and AED 30,000.
By clearly stating the intent to record, companies can avoid potential legal issues and ensure they are respecting consumer rights.

2. Strict Data Protection Rules

The new regulations place a strong emphasis on the protection of consumer data. Companies are prohibited from disclosing personal data without the explicit consent of the consumer. Additionally, trading consumer data for marketing purposes without consent is strictly forbidden.
Violating these data protection rules can lead to significant fines, starting at AED 50,000 and escalating to AED 150,000 for repeated offenses. These penalties reflect the seriousness of data privacy and the UAE’s commitment to protecting its residents.

3. No Pressure Tactics Allowed

Telemarketers are prohibited from using high-pressure tactics to persuade consumers to buy products or services. This rule ensures that consumers can make informed decisions without feeling coerced. Companies that violate this rule can face fines up to AED 50,000 for repeat offenses.
Ethical telemarketing practices are essential for maintaining consumer trust and avoiding reputational damage.

Ensuring Ethical Telemarketing Practices

1. Caller Identification and Purpose Disclosure

At the start of every call, telemarketers must clearly identify themselves and the company they represent. They must also explain the purpose of the call. Failure to do so could result in an administrative penalty of up to AED 30,000 for repeated violations.
This rule ensures that consumers are fully informed and can make decisions about whether or not to continue the conversation.

2. Handling Do Not Call Requests

Telemarketers are required to respect the Do Not Call Registry (DNCR). If a consumer’s number is listed on the DNCR, companies are prohibited from calling them for marketing purposes. Violating this rule could result in fines up to AED 150,000.
The DNCR is a critical tool for protecting consumers from unwanted calls, and adherence to this rule is mandatory.

3. Reporting Obligations

Companies must provide periodic reports to the competent authority detailing the marketing calls made within a specific timeframe. Failure to submit these reports on time could result in a penalty of up to AED 30,000.
This reporting obligation ensures that authorities can monitor telemarketing activities and enforce the regulations effectively.

Additional Penalties for Non-Compliance

1. Fraud and Misrepresentation

Companies that engage in fraudulent activities or misrepresent products or services during marketing calls will face severe penalties. Fines for such offenses range from AED 25,000 to AED 75,000, depending on the nature and frequency of the violation.
Upholding honesty and integrity in telemarketing practices is crucial for maintaining consumer trust.

2. Consequences for Natural Persons

If an individual uses a phone number registered under their name for telemarketing purposes without proper authorization, they will be fined AED 5,000. In addition, all phone numbers registered under their name will be disconnected until the fine is paid.
A second violation will lead to a financial penalty of AED 20,000 and disconnection of all numbers under the individual’s name for three months. For a third violation within 30 days, the penalty increases to AED 50,000, and the individual will be banned from receiving any services from telecommunication companies in the UAE for 12 months.

FAQs on UAE’s New Telemarketing Laws

1. When do the new telemarketing rules come into effect?

2. What are the penalties for non-compliance with telemarketing regulations?

Penalties range from AED 5,000 to AED 150,000, depending on the severity and repetition of the violation.

3. Can I make multiple calls to a customer in a single day?

Additionally, you cannot make more than one follow-up call per day if the customer does not answer, and no more than two follow-up calls per week.

4. Do I need approval to conduct telemarketing activities?

Yes, obtaining prior approval from the relevant authority is mandatory before engaging in any telemarketing activities.

5. What happens if I use an unregistered phone number for telemarketing?

Using an unregistered or unauthorized phone number for telemarketing can result in fines ranging from AED 25,000 to AED 75,000.

UAE Telemarketing Laws: Comprehensive Guide to New Fines 2024