Residents and investors in the UAE now have the ability to file complaints against cold callers who are violating new regulations that came into effect on August 27. Under the new mechanism announced, the public can report violations to the federal or local authority that licensed the telemarketer to sell goods and services. The Telecommunications and Digital Government Regulatory Authority (TDRA) has outlined the process for reporting violations based on the type of call received. For example, if the call is related to a bank, the complaint should be filed with the Central Bank, and for investment-related calls, the Securities and Commodities Authority (SCA) should be contacted. It is important to note that residents can report violations even if the caller uses a personal mobile number for sales calls.
The Central Bank of the UAE is responsible for matters related to telephone marketing for banking services, while the SCA handles marketing calls related to securities and commodities trading services in the country. Licensing authorities in the mainland and free zones are also responsible for matters related to phone marketing of products or services in the country. Violations by cold callers and telemarketing firms will result in financial penalties ranging from Dh5,000 to Dh150,000. Telemarketing companies must obtain prior approval to practice activities, and failure to comply will result in escalating fines for repeated violations.
The Ministry of Economy oversees the implementation of the UAE Cabinet Resolution No. 56 of 2024, which regulates marketing through telephone calls. The resolution imposes restrictions on telemarketers, including calling customers only during specific hours and refraining from contacting residents again on the same day if they reject the service or product in the first call. Violations of the regulations will result in administrative penalties, the amount depending on the type and nature of the violation. Entities that fail to provide comprehensive training to marketers on the code of conduct will also face penalties.
To facilitate complaint filing, the SCA allows consumers to submit complaints on its website or via email for unsolicited calls from telemarketing firms. By providing the necessary information, the SCA will investigate the complaint and apply penalties if there is a breach of the law. The Ministry of Economy’s ‘do-not-call registry’ (DNCR) aims to prevent bothersome marketing calls to the public by ensuring that residents who have signed up for the service do not receive telemarketing calls. The DNCR is a directory of phone numbers of consumers who do not wish to receive such calls. The TDRA, which launched the DNCR, will work closely with relevant organizations to establish guidelines and mechanisms for its effective implementation.
The UAE laws require telemarketing companies to provide comprehensive training to their marketers on professional ethics of conduct when making marketing calls. This includes the use of a “do not contact register” (DNCR) to respect consumers’ preferences regarding receiving marketing calls. The Ministry of Economy and the TDRA are committed to enforcing regulations on marketing through phone calls to protect consumer rights and ensure compliance with the law. Residents are encouraged to report violations and make use of the DNCR to avoid receiving unwanted telemarketing calls. With the new regulations in place, residents and investors can feel empowered to take action against unethical telemarketing practices in the UAE.
