Crackdown on cold calls begins and business risk fines of AED 150k

The United Arab Emirates has officially enacted new telemarketing regulations targeting cold calls, aiming to enhance consumer privacy and reduce unwanted interruptions. These regulations, which came into effect recently, introduce several key restrictions on telemarketing practices:

• Calling Hours: Telemarketing calls are prohibited outside the hours of 9 a.m. to 6 p.m.
• Permission Requirement: Companies must secure explicit authorization from the relevant authorities before conducting marketing calls.
• Call Timing: Companies are barred from calling a consumer on the same day they have declined or ended a previous call.
• Rejection Protocol: If a consumer rejects a product or service, further calls from the company are prohibited.
• Phone Number Restrictions: Calls must be made from a registered company number, not from personal phone numbers.
• Do Not Contact Registry (DNCR): Marketers are prohibited from contacting numbers listed in the DNCR.

Her Excellency Safeya Al Safi, Acting Assistant Undersecretary for Control and Commercial Governance at the Ministry of Economy, explained that the decision followed numerous consumer complaints about frequent and intrusive telemarketing calls. “We received substantial feedback from consumers regarding the daily nuisance of unsolicited telecommunications,” she stated.

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The new regulations, finalized as Cabinet Decision No. 56 of 2024, were developed after nearly two years of discussions with various UAE authorities, both federal and local. Al Safi highlighted that the regulations were designed to address these concerns by enforcing greater transparency and integrity in telemarketing practices.

Under the new rules, companies that violate these regulations could face significant penalties. Potential consequences include fines up to AED 150,000, suspension of operations, cancellation of their business license, and a year-long ban on providing marketing services.

The Government Media Office emphasized that these measures are intended to ensure that companies conduct their telemarketing activities with care and respect for consumers, maintaining high standards of transparency and credibility.

Consumers who wish to report violations can file complaints with the relevant federal or local authorities that issued the telemarketing company’s license. For banks, complaints should be directed to the Central Bank, while issues related to investments should be reported to the Securities and Commodities Authority (SCA). Complaints about the use of personal phone numbers by telemarketers should be addressed to the Telecommunications and Digital Government Regulatory Authority (TDRA).

Al Safi reassured that the enforcement of these regulations will be rigorous. “Companies are advised to seek approval if they plan to engage in telemarketing. We will act decisively upon receiving consumer complaints and will investigate any breaches thoroughly,” she concluded