Telemarketing has long been a favored method for businesses to reach potential customers, but with major evolutions in data privacy and consumer protection laws, telemarketing is now entangled with numerous legal challenges and concerns.
In line with these developments, the UAE adopted Cabinet Decision No. 56/2024 (Decision) of 10 June 2024 to strengthen the regulatory framework regulating telemarketing activities. The Decision will be officially announced on 28 June 2024 and will come into effect on 27 August 2024. Companies operating in the UAE market would be wise to review their marketing practices in advance to comply with the new requirements.
The decision sets out principles and an additional framework for the regulation of telemarketing activities, i.e. calls to consumers for the purpose of marketing, advertising or promoting products and services, as well as marketing SMS and other messages sent through social media applications.
Primary Obligations
The Decision sets out key obligations for companies, among other things:
Pre-approval: Companies must obtain pre-approval from the Telecommunications and Digital Governance Regulatory Authority (TDRA) to conduct telemarketing activities. Training: Companies must provide comprehensive training to employees conducting telemarketing activities on professional ethics and the use of the Do Not Call Register. Record-keeping: All telemarketing activities must be properly recorded using forms prepared by the TDRA. Transparency: Telemarketers must introduce the company name and purpose of the call at the beginning. Disclosure of sources: Companies must disclose the source of their customer database to the TDRA upon request.
Additionally, businesses must take reasonable care to avoid inconveniencing consumers, including by adhering to designated telephone hours (9am to 6pm local time) and avoiding deceptive or misleading practices when selling products or services.
Penalties for violations
Companies that violate this decision could face significant penalties, including warnings, administrative fines (depending on the type and frequency of violations), suspension of activities and even revocation of commercial licenses, as stipulated in Cabinet Decision No. 57/2024 of 10 June 2024.
Data Protection Considerations
In addition to consumer protection requirements, companies conducting telemarketing activities must comply with data protection requirements. It is important to remember that there are three data protection regimes in the UAE: the mainland regime, set out by Federal Decree No. 45 of 2021 on the Protection of Personal Data, and separate regimes in the ADGM and DIFC free zones, each with different legal consequences for violations (for more information, see our publication on data protection regulations in the Middle East).
Conclusion
Navigating the telemarketing legal environment requires a proactive approach to compliance. Companies must stay informed about evolving regulations, invest in proper training for their staff, and implement robust systems to manage regulatory compliance. Doing so will help them effectively mitigate the risks associated with telemarketing and ensure their practices are aligned with the highest standards of transparency, reliability, and honesty.