Regulating Telephone Marketing in the UAE: Key Insights and Implications

In a significant move towards enhancing consumer protection and maintaining high ethical standards in marketing practices, the UAE's Ministry of Economy (MoEc) recently held a media briefing to discuss the nation's latest efforts in regulating telephone marketing. This briefing centered around two key legislative measures: Cabinet Resolution No. 56 of 2024, which governs the conduct of telephone marketing, and Cabinet Resolution No. 57 of 2024, which outlines the penalties for non-compliance.

Understanding the Regulatory Framework

Cabinet Resolution No. 56 of 2024 introduces comprehensive guidelines that all licensed companies must follow when engaging in telephone marketing. These regulations aim to protect consumers and ensure that marketing activities are conducted responsibly and ethically. Some of the key commitments include:

1. Prior Approval: Companies must obtain prior approval from the relevant authority before commencing any marketing activities.
2. Professional Training: Marketers must be trained in professional ethics, with a particular focus on respecting the "Do Not Contact Register" (DNCR).
3. Use of Local Numbers: Marketing calls must be made using local telephone numbers issued by licensed telecommunications companies.
4. Consumer Consent: Marketers should only contact consumers who have expressed interest in receiving marketing information.
5. Respect for DNCR: Companies must avoid contacting consumers whose numbers are registered in the DNCR.
6. Call Recording and Reporting: Companies are required to maintain records of all marketing calls and notify consumers if their calls are being recorded.
7. Ethical Practices: Adherence to a Code of Professional Conduct is mandatory to ensure that marketing activities meet ethical standards.
8. Timing of Calls: Marketing calls are restricted to the hours between 9 am and 6 pm.
9. Transparency: Companies must clearly identify themselves and the purpose of the call at the beginning of the conversation.
10. Source Disclosure: Companies must disclose the source of consumer data if requested by authorities.

Enforcement and Penalties

Cabinet Resolution No. 57 of 2024 outlines 18 specific violations and corresponding penalties for non-compliance with these regulations. Penalties range from AED 10,000 to AED 150,000, depending on the severity of the violation. The Ministry of Economy will oversee the enforcement of these regulations, ensuring that companies adhere to the standards set forth.

Key Authorities Involved

The implementation of these regulations involves several key authorities:

• The Telecommunications and Digital Government Regulatory Authority (TDRA): Responsible for managing the DNCR and collaborating with relevant organizations to enforce the regulations.
• The Central Bank of the UAE: Oversees telephone marketing related to financial services, including banks, insurance companies, and other financial institutions.
• The Securities and Commodities Authority (SCA): Regulates marketing activities related to securities and commodities trading.

Conclusion

For companies operating in the UAE, adherence to these regulations is not just a legal requirement but also a crucial aspect of building trust and credibility with consumers.

Vocalcom provides solutions to help you comply with the latest regulations, ensuring your business stays protected.