Author: Sinduja Amudanathan
In today’s connected marketplace, the line between effective marketing and intrusive communication is increasingly fine. To address growing concerns about consumer privacy and unsolicited calls, the UAE government issued Cabinet Resolution No. 56 of 2024 and Cabinet Resolution No. 57 of 2024, both effective from 27 August 2024.
These landmark regulations set clear standards for ethical telemarketing. They require companies to act responsibly, protect personal data, and respect consumer preferences. More than a year since they came into force, businesses must ensure their marketing practices comply with these rules to avoid penalties and maintain public trust.
Businesses engaging in telemarketing must follow strict operational and ethical requirements. These include:
1. Prior approval – Obtain approval from the competent authority before carrying out any telemarketing activities.
2. Training – Provide training to staff on ethical conduct and use of the Do Not Call Registry (DNCR).
3. Local telephone numbers – Use only telephone numbers registered under the company’s UAE commercial licence.
4. Communication channels – Set up a dedicated channel to provide product or service information to consumers who request it.
5. Record keeping – Keep records of marketing calls as required by the competent authority and retain them for the prescribed period.
6. Recording of calls – Record all marketing calls and inform the consumer at the start of the call that the conversation will be recorded.
7. Reporting – Submit regular reports on telemarketing activities to the competent authority within one month of the due date.
8. Professional conduct – Sign and uphold a code of professional conduct approved by the competent authority.
9. Restricted hours – Make telemarketing calls only between 9:00 a.m. and 6:00 p.m.
10. Source disclosure – Provide the source of consumer phone numbers and data when requested by the competent authority.
Companies must take care to avoid practices that inconvenience consumers or damage trust. Under the Telemarketing Regulations, businesses must:
These rules promote transparency, integrity, and credibility in the UAE’s growing telemarketing sector.
The regulations strengthen consumer privacy and data protection:
Telemarketing companies must also comply with the UAE’s broader data protection framework, which includes three regimes:
Each has separate enforcement and penalty mechanisms, making it vital for businesses to understand which laws apply to their operations.
Under the Regulations on Administrative Violations, penalties for non-compliance are significant:
Licensed companies may face warnings, suspension of operations, licence revocation, or fines of up to AED 150,000 for repeated offences such as contacting numbers listed on the DNCR.
Individuals can be fined from AED 5,000, and their services may be suspended for marketing calls made from personal numbers.
Any party dissatisfied with a penalty or decision can appeal within 15 days of notification. The authority must review and respond within 30 days, ensuring transparency and due process.
The UAE’s telemarketing regulations represent a major step towards ethical and transparent consumer engagement. They encourage companies to prioritise integrity, respect, and data protection in every customer interaction.
By following the rules set out under Cabinet Resolutions No. 56 and 57 of 2024 and ensuring alignment with the country’s wider data protection laws, businesses can build credibility, avoid legal risks, and strengthen customer trust.
If your organisation engages in telemarketing or customer outreach, BDO’s Legal and Regulatory team can help you interpret these regulations, design compliant marketing systems, and implement best practices that meet both legal and ethical standards.
Note: This Legal Update / Newsletter is intended for general informational purposes only and should not be construed as legal advice. It is based on laws and legal interpretations in effect as of the date of publication. Laws and regulations may change over time, and their application can vary depending on individual circumstances. Readers are strongly encouraged to seek specific legal counsel before acting on any of the information provided herein.
In today’s connected marketplace, the line between effective marketing and intrusive communication is increasingly fine. To address growing concerns about consumer privacy and unsolicited calls, the UAE government issued Cabinet Resolution No. 56 of 2024 and Cabinet Resolution No. 57 of 2024, both effective from 27 August 2024.
These landmark regulations set clear standards for ethical telemarketing. They require companies to act responsibly, protect personal data, and respect consumer preferences. More than a year since they came into force, businesses must ensure their marketing practices comply with these rules to avoid penalties and maintain public trust.
Key requirements for licensed companies
Businesses engaging in telemarketing must follow strict operational and ethical requirements. These include:1. Prior approval – Obtain approval from the competent authority before carrying out any telemarketing activities.
2. Training – Provide training to staff on ethical conduct and use of the Do Not Call Registry (DNCR).
3. Local telephone numbers – Use only telephone numbers registered under the company’s UAE commercial licence.
4. Communication channels – Set up a dedicated channel to provide product or service information to consumers who request it.
5. Record keeping – Keep records of marketing calls as required by the competent authority and retain them for the prescribed period.
6. Recording of calls – Record all marketing calls and inform the consumer at the start of the call that the conversation will be recorded.
7. Reporting – Submit regular reports on telemarketing activities to the competent authority within one month of the due date.
8. Professional conduct – Sign and uphold a code of professional conduct approved by the competent authority.
9. Restricted hours – Make telemarketing calls only between 9:00 a.m. and 6:00 p.m.
10. Source disclosure – Provide the source of consumer phone numbers and data when requested by the competent authority.
Controls for telemarketing calls
Companies must take care to avoid practices that inconvenience consumers or damage trust. Under the Telemarketing Regulations, businesses must:
- Avoid using undue pressure to persuade consumers.
- Refrain from misleading or deceptive sales tactics.
- Not contact a consumer again if they decline an offer during the first call.
- Limit follow-up calls to once per day and no more than twice per week if unanswered.
- Ask for consent before promoting any product or service during the call.
These rules promote transparency, integrity, and credibility in the UAE’s growing telemarketing sector.
Consumer protection and rights
The regulations strengthen consumer privacy and data protection:- Personal data – Companies may not disclose, sell, or share consumers’ personal data without consent.
- Do Not Call Registry (DNCR) – Consumers can register their numbers on the DNCR to stop unsolicited calls. If calls persist, they can file a complaint with the competent authority, which will investigate and take enforcement action.
Telemarketing companies must also comply with the UAE’s broader data protection framework, which includes three regimes:
- Federal Decree-Law No. 45 of 2021 on Personal Data Protection (mainland UAE).
- The Abu Dhabi Global Market (ADGM) data protection regime.
- The Dubai International Financial Centre (DIFC) data protection regime.
Each has separate enforcement and penalty mechanisms, making it vital for businesses to understand which laws apply to their operations.
Regulations on administrative violations
Under the Regulations on Administrative Violations, penalties for non-compliance are significant:Licensed companies may face warnings, suspension of operations, licence revocation, or fines of up to AED 150,000 for repeated offences such as contacting numbers listed on the DNCR.
Individuals can be fined from AED 5,000, and their services may be suspended for marketing calls made from personal numbers.
Any party dissatisfied with a penalty or decision can appeal within 15 days of notification. The authority must review and respond within 30 days, ensuring transparency and due process.
Conclusion
The UAE’s telemarketing regulations represent a major step towards ethical and transparent consumer engagement. They encourage companies to prioritise integrity, respect, and data protection in every customer interaction.By following the rules set out under Cabinet Resolutions No. 56 and 57 of 2024 and ensuring alignment with the country’s wider data protection laws, businesses can build credibility, avoid legal risks, and strengthen customer trust.
If your organisation engages in telemarketing or customer outreach, BDO’s Legal and Regulatory team can help you interpret these regulations, design compliant marketing systems, and implement best practices that meet both legal and ethical standards.
Note: This Legal Update / Newsletter is intended for general informational purposes only and should not be construed as legal advice. It is based on laws and legal interpretations in effect as of the date of publication. Laws and regulations may change over time, and their application can vary depending on individual circumstances. Readers are strongly encouraged to seek specific legal counsel before acting on any of the information provided herein.