New UAE Telemarketing Regulations: Improved Consumer Protections and Reporting

Starting August 27, UAE residents and investors can now take action against cold callers who breach the newly enforced telemarketing regulations. These rules, designed to protect consumer rights, allow the public to file complaints directly with the federal or local authority responsible for licensing the telemarketer involved in the infraction.

How to Report Violations

If a resident receives a marketing call from a company, they can report it to the relevant authority. For instance, complaints about banking services should be directed to the Central Bank, while issues related to investment and securities should go to the Securities and Commodities Authority (SCA). Additionally, if telemarketers use personal mobile numbers to make sales calls, residents can report this violation via SMS by sending "REPORT" followed by the offending number to 1012.

New Telemarketing Rules

The UAE Cabinet Resolution No. 56 of 2024 outlines stringent rules for telemarketers, including:

• Calls are only permitted between 9 a.m. and 6 p.m.
• Telemarketers must refrain from calling residents more than once a day if the initial call is rejected.
• Persuasive tactics to pressure customers into purchasing products or services are prohibited.

Violators face hefty fines, ranging from AED 10,000 to AED 150,000, depending on the severity of the breach. Telemarketing companies must also secure prior approval before conducting their activities, with penalties escalating for repeat offenses.

Consumer Protection and Enforcement

The Central Bank oversees telephone marketing related to financial services, while the SCA handles issues involving securities and commodities. The Ministry of Economy (MoE) is tasked with monitoring compliance, ensuring that companies adhere to the new regulations and respect consumer privacy.

The MoE has introduced the 'Do Not Call Registry' (DNCR), a directory of phone numbers belonging to consumers who do not wish to receive telemarketing calls. The Telecommunications and Digital Government Regulatory Authority (TDRA) is working with other organizations to implement the DNCR, enforce regulations, and raise public awareness.

These reforms underscore the UAE's commitment to creating a business environment that respects consumer rights and upholds privacy standards. By empowering residents to report violations and setting clear boundaries for telemarketing practices, the UAE aims to minimize unwanted marketing calls and ensure a more respectful and ethical approach to consumer interactions.