Telemarketing Regulations

Compliance Guide for UAE Businesses

Telemarketing Consent and Opt-In Requirements

One of the most important aspects of telemarketing regulation is obtaining explicit consent from individuals before contacting them for marketing purposes..

Key Regulations:

• Cabinet Resolution No. 56 of 2024: This regulation governs the general telemarketing framework, specifying consent requirements, data privacy obligations, and restrictions on unsolicited communication.

• Cabinet Resolution No. 57 of 2024: This decision outlines the penalties for violations of telemarketing rules, including fines for non-compliance.

Actionable Steps:

• Step 1: Regularly check your contact lists against the Do-Not-Call (DNC) registry, which is maintained by the Telecommunications and Digital Government Regulatory Authority (TDRA).

• Step 2: Remove or update customer information in your system if they have opted out of telemarketing communications.

• Step 3: Provide customers with a simple way to opt-out in every marketing call, SMS, or email.

       Actionable Steps:

• Step 1: Ensure that all consumers give explicit consent to be contacted via telemarketing. This consent must be opt-in, meaning the consumer actively agrees to be contacted.

• Step 2: Store consent records, including the method and date the consumer gave permission, in a secure database.

• Step 3: Include an opt-out option in every telemarketing communication, allowing consumers to withdraw their consent easily.

Actionable Steps:

• Step 1: Ensure that every telemarketing call or SMS includes the identity of the business, purpose of the call, and contact information for follow-up or complaints.

• Step 2: Avoid misleading statements, unverified claims, or pressure tactics that may mislead or coerce consumers.

• Step 3: Include a clear opt-out method in all communications (e.g., “Reply STOP to unsubscribe” in SMS or email).

Privacy and Data Protection in Telemarketing

Compliance with data privacy regulations is essential to avoid legal penalties and build consumer trust. Telemarketing businesses must handle consumer data with care, ensuring that it is collected, stored, and used according to UAE data protection laws.

Telemarketing Call and SMS Content Regulations

The content of telemarketing communications must comply with specific guidelines to ensure transparency, honesty, and respect for consumer rights.

Actionable Steps:

• Step 1: Collect only the minimum necessary data required for telemarketing purposes.

• Step 2: Implement data encryption and access control to ensure that consumer data is securely stored and protected from unauthorized access.

• Step 3: Develop a Privacy Policy that explains how consumer data will be used, stored, and shared, and make this policy accessible to consumers.

Telemarketing Call Time Restrictions

Telemarketing communications in the UAE must be conducted during permitted hours to avoid disturbing consumers at inappropriate times.

Actionable Steps:

• Step 1: Schedule all telemarketing calls and SMS messages between 9 AM and 6 PM, the timeframe allowed by UAE law.

• Step 2: Avoid contacting consumers on public holidays or weekends unless they have specifically consented to be contacted during those times.

• Step 3: Implement a system that automatically blocks outbound calls and messages outside the permitted hours.

Actionable Steps:

• Step 1: Schedule telemarketing compliance training for all staff at least once a year. Training should cover consent management, DNC compliance, call scripts, and data privacy.

• Step 2: Ensure that training materials are updated regularly to reflect any changes in telemarketing laws and regulations.

• Step 3: Monitor staff performance to ensure they are adhering to the training and following proper procedures.

Staff Training for Telemarketing Compliance

Regular training of telemarketing staff is essential to ensure that they understand and follow all legal requirements.

Actionable Steps:

• Step 1: Acknowledge complaints within 24 hours and provide the consumer with information about how their issue will be addressed.

• Step 2: Investigate the complaint thoroughly and take corrective action if necessary, such as updating the consumer’s preferences or reviewing internal procedures.

• Step 3: Notify the consumer once the issue has been resolved, and log the complaint and resolution in your records.

Handling Telemarketing Complaints

If a customer files a complaint about your telemarketing practices, it is crucial to handle it professionally and promptly to avoid escalation to regulatory authorities

Do-Not-Call (DNC) Lists and Opt-Out Management

Telemarketing companies are required to respect Do-Not-Call (DNC) lists and ensure that consumers who opt-out of telemarketing communications are not contacted again.

Penalties for Non-Compliance with Telemarketing Regulations

Violations of the Cabinet Resolution No. 56 and 57 of 2024 can result in severe penalties, including fines and suspension of telemarketing activities. Companies must take proactive measures to avoid non-compliance.

Actionable Steps:

• Step 1: Regularly review and update your telemarketing procedures to ensure compliance with current regulations.

• Step 2: Conduct internal audits of your telemarketing practices, including reviewing call recordings, consent records, and opt-out logs.

• Step 3: If you receive complaints or notice non-compliance, address the issue immediately to avoid fines and regulatory action.

Telemarketing Regulations

Questions & Answers

1. What is telemarketing as per UAE law?
   Telemarketing in the UAE refers to phone calls made by a company or an individual to a consumer for marketing, advertising, or promoting products or services. This includes calls, SMS, and social media messages made through registered landlines or mobile numbers.

2. What laws govern telemarketing in the UAE?
   Telemarketing activities are governed by Cabinet Resolution No. (56) of 2024, which outlines the regulations for marketing through phone calls, and Cabinet Resolution No. (57) of 2024, which covers the penalties for violating telemarketing regulations.

3. Who is responsible for overseeing telemarketing activities in the UAE?
   Telemarketing activities are supervised by various authorities depending on the jurisdiction. These include the Telecommunications and Digital Government Regulatory Authority (TDRA), the Central Bank, and local government authorities.

4. What is the 'Do Not Connect Register' (DNCR)?
   The DNCR is a national registry maintained by the TDRA that allows consumers to register their phone numbers to avoid receiving unwanted marketing phone calls.

5. Are free zone companies subject to telemarketing regulations?
   Yes, all companies, including those in free zones, must comply with UAE telemarketing regulations.

6. What types of calls are considered telemarketing?
   Telemarketing refers to any phone calls made for the purpose of marketing, advertising, or promoting products or services to consumers.

7. What is the purpose of the DNCR?
   The DNCR is designed to protect consumers from unwanted telemarketing calls by allowing them to register their numbers and block such calls.

8. Are natural persons allowed to conduct telemarketing?
   No, natural persons cannot make marketing phone calls for products or services using personal or licensed phone numbers. Only licensed companies can perform telemarketing activities.

9. What is required for a company to conduct telemarketing?
   Companies must obtain prior approval from the competent authority and register their telemarketing numbers under their commercial license.

10. What happens if a company does not register for telemarketing?
    Companies that fail to register and obtain approval for telemarketing activities face fines starting at AED 75,000 for the first violation, which can escalate to AED 150,000 for repeated offenses.

11. What training requirements exist for companies engaging in telemarketing?

    
    Companies must provide comprehensive training to their telemarketers on the code of conduct, the ethics of making marketing calls, and the principles of using the DNCR. Failure to do so can result in fines starting at AED 10,000.

12. What must companies do when making telemarketing calls?
    Companies must identify themselves and their purpose at the start of the call, record the call (with the consumer’s consent), and provide a communication channel for consumers interested in marketing information.

13. Can a company use any phone number for telemarketing?
    No, companies are only permitted to use phone numbers that are registered under their commercial license and issued by licensed UAE telecommunications providers.

14. What are the specific time limits for making marketing calls?
    Telemarketing calls can only be made between 9:00 AM and 6:00 PM. Making calls outside this time window can lead to penalties.

15. What happens if a consumer rejects a product during a marketing call?
    If a consumer rejects the product or service during the first call, the company is not allowed to call them back regarding the same product.

16. Can companies call consumers who are listed in the DNCR?
    No, calling consumers whose numbers are registered in the DNCR is strictly prohibited. Violations of this rule can result in fines of AED 50,000 for the first offense, escalating to AED 150,000 for repeated violations.

17. Are companies required to keep records of telemarketing calls?
    Yes, companies must maintain a record of all marketing phone calls according to a format specified by the competent authority. Records must be retained for a period determined by the authority.

18. What penalties exist for failing to keep records of marketing calls?
    Failure to maintain records of marketing calls can result in fines of AED 10,000 for the first violation, increasing to AED 50,000 for repeated offenses.

19. Can companies use automated systems for telemarketing?
    Yes, companies may use automated systems for marketing, advertising, or promoting products or services, but these systems must comply with all provisions of the Telemarketing Resolution.

20. What must companies do if a consumer requests the source of their data?
    If requested by the competent authority or the consumer, companies must disclose the source from which they obtained the consumer's phone number and other data. Failure to comply can lead to penalties.

21. What is the consequence of failing to disclose the source of consumer data?
    If a company fails to disclose the source of the consumer's data when requested by the competent authority, it can be fined AED 25,000, with penalties increasing for repeated violations.

22. How does the telemarketing regulation address consumer privacy?
    The telemarketing regulation ensures that companies cannot disclose or trade consumer personal data without consent. Violating consumer privacy, such as using their data for unauthorized marketing, can result in fines of up to AED 150,000.

23. What should companies do if they need to re-contact a consumer?
    If a consumer does not answer or ends a call, the company is limited to calling the consumer once more on the same day and no more than twice in one week. Exceeding this limit results in penalties.

24. What penalties are imposed for using high-pressure marketing techniques?
    Using high-pressure or manipulative marketing techniques can result in fines starting at AED 10,000 for the first violation, increasing to AED 50,000 for repeated offenses.

25. What are the requirements for notifying consumers about recording calls?
    Companies must inform consumers that the call is being recorded at the beginning of the conversation. Failing to notify the consumer can result in fines starting from AED 10,000.

26. What is the penalty for failing to report telemarketing activities to the competent authority?
    Companies are required to submit periodic reports regarding their telemarketing activities. Failure to submit reports can lead to fines starting at AED 10,000, escalating for subsequent violations.

27. What happens if a company uses fraudulent or misleading practices in telemarketing?
    If a company engages in fraud or deception during telemarketing calls, it faces penalties starting at AED 25,000, increasing to AED 75,000 for repeated violations.

28. What restrictions exist on the use of automated calling systems?
    Automated calling systems can be used for marketing, but they must comply with all telemarketing regulations, including call times, DNCR adherence, and consumer consent. Violating these rules can result in fines.

29. How can consumers file complaints about unwanted marketing calls?
    Consumers can file complaints with the TDRA or the relevant competent authority. The complaints should include details like the consumer’s name, the company’s name, and the phone number used for the marketing call.

30. How does the telemarketing regulation interact with data protection laws?
    The telemarketing regulation aligns with Federal Decree-Law No. (45) of 2021 Concerning Personal Data Protection, ensuring that consumer data is protected, and companies cannot use or share data without explicit consent.

31. What is the procedure for a company to apply for telemarketing approval?
    A company must apply for telemarketing approval from the competent authority by submitting the necessary documents, such as its commercial license and proof that it has registered the marketing phone numbers.

32. What role does the Telecommunications and Digital Government Regulatory Authority (TDRA) play in telemarketing regulation?
    The TDRA oversees the DNCR and works with the Ministry of Economy and local authorities to ensure compliance with telemarketing regulations. It also handles complaints from consumers about unwanted marketing calls.

33. Can a company delegate telemarketing activities to a third party?
    Yes, a company can delegate telemarketing activities to a third party, but it remains responsible for ensuring that all telemarketing regulations are followed by the third-party service provider.

34. What should companies do to comply with marketing ethics in telemarketing?
    Companies must ensure that their marketers are trained in ethics, professional conduct, and DNCR usage. They should also follow the highest standards of transparency, honesty, and integrity in their marketing efforts.

35. What penalties are imposed on natural persons violating telemarketing regulations?
    Natural persons making unauthorized marketing calls face fines starting at AED 5,000, with more severe penalties such as cutting telecommunications services for repeated violations.

36. Can a company use marketing calls to persuade consumers with unreasonable pressure?
    No, companies are prohibited from using marketing techniques that put undue pressure on consumers. Violating this rule can result in fines starting at AED 10,000, increasing for repeated offenses.

37. What are the consequences of marketing calls made outside permitted hours?
    Companies making marketing calls outside the permitted hours (9:00 AM to 6:00 PM) face fines of AED 10,000, with increased penalties for repeated violations.

38. How long must companies retain telemarketing records?
    Companies must retain records of all telemarketing calls for a duration specified by the competent authority. Failing to maintain these records can result in significant fines.

39. What happens if a company repeatedly violates telemarketing regulations?
    Companies that repeatedly violate telemarketing regulations may face escalating penalties, including fines, suspension of activities, and potentially the cancellation of their business license.