New UAE Telemarketing Laws: Detailed Fines Unveiled as Regulations Begin 27 August

The UAE's new telemarketing regulations will come into force from August 27. The authorities announced these new laws for telemarketers in early June 2024.

The new regulations impose restrictions such as limiting calls to between 9 am and 6 pm, prohibiting repeat calls on the same day if the service or product is rejected during the initial call and banning any persuasive tactics aimed at coercing customers into purchasing products or services.

Telemarketing firms and cold callers who breach these laws will face financial penalties ranging from Dh5,000 to Dh150,000. The penalties will escalate with repeated violations, with administrative fines categorised into first, second, and third offences.

Under Cabinet Resolution No. (57) of 2024, penalties will significantly increase for each subsequent violation.

Companies that fail to obtain prior approval to engage in telemarketing activities will be fined Dh75,000 for the first offence, Dh100,000 for the second and Dh150,000 for the third.

Entities that neglect to provide comprehensive training on the code of conduct for marketers will face fines ranging from Dh10,000 to Dh50,000.

Individuals who make calls from numbers not registered under the company’s commercial licence will be fined between Dh25,000 and Dh75,000.

Companies are required to maintain a log of all marketing calls made, as per the authority's guidelines, with failure to do so potentially resulting in fines of up to Dh50,000 for repeat violations.

These measures have been implemented by the government to prevent residents from being inundated with cold calls, following complaints regarding telemarketing practices.

Anyone who calls customers whose numbers are listed on the Do Not Call Registry (DNCR) for marketing purposes will face fines of up to Dh150,000.

It is also mandatory for the company or individual to inform the consumer at the beginning of the call if it is being recorded; failure to comply will result in fines ranging from Dh10,000 to Dh30,000.

Additionally, those who fail to record marketing calls with consumers will face penalties between Dh10,000 and Dh50,000.

Companies are also required to submit periodic reports to the competent authority detailing the marketing calls made, within a month of the report date. Non-compliance with this rule may lead to an administrative penalty of up to Dh30,000.

Callers are required to identify the company and state the purpose of the call at the outset; failure to do so could result in an administrative penalty of up to Dh30,000 for repeat violations.

In cases where the source of the consumer's phone number and data is not disclosed upon request, the authority may impose a financial penalty of up to Dh75,000.

Fines of up to Dh50,000 will be imposed for repeat violations involving pressuring consumers, and penalties ranging from Dh25,000 to Dh75,000 will be applied for fraud or deception during phone marketing.

Since cold callers are restricted to making calls only between 9 am and 6 pm, violators could face fines of Dh10,000, increasing to Dh50,000 for repeat offences.

Fines ranging from Dh10,000 to Dh50,000 will be imposed for repeat calls made when the consumer declines the product or service during the first call.

Additionally, callers who do not inquire about the consumer’s willingness to continue the call before starting their marketing services will be penalised with fines between Dh10,000 and Dh30,000.

The authority will also penalise cold callers who repeatedly attempt to contact customers when they do not answer, with fines of up to Dh50,000 for repeat offences if calls are made more than once per day or more than twice per week.

Companies that disclose personal consumer data without consent or trade such data for marketing purposes will face fines of Dh50,000 for the first offence, escalating to Dh150,000 for a third violation.

Callers who use telemarketing services in violation of this resolution’s provisions will face fines of up to Dh50,000.

Finally, if an individual makes a marketing call for products and services using a phone number licensed in their name, they will face a Dh5,000 fine. All fixed or mobile phone numbers registered under their name will also be cut off until payment is made for the first violation.

For a second violation, a financial penalty of Dh20,000 will be imposed, and all numbers under the individual’s name will be suspended for three months.

If the same violation is committed a third time within 30 days, the penalty increases to Dh50,000, and the individual will be barred from receiving any services from telecommunications companies in the UAE for 12 months.

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