Telemarketing has long been a favored method for businesses to reach potential clients. However, with the significant evolution of data privacy and consumer protection laws, telemarketing is now intertwined with numerous legal challenges and concerns.
In line with these developments, the United Arab Emirates has adopted Cabinet Decision No. 56/2024 of June 10, 2024 (the Decision) to enhance the regulatory framework governing telemarketing activities. The Decision was officially published on June 28, 2024 and will come into force on August 27, 2024. It would be prudent for businesses operating in the UAE market to review their marketing practices before such time to ensure compliance with the new requirements.
The Decision sets out principles and an additional framework for the regulation of telemarketing activities, i.e., phone calls to consumers for the purposes of marketing, advertising, or promoting products or services, as well as marketing SMS and other messages sent through social media applications.
Key Obligations
The Decision established key obligations for businesses and, among other things, the following:
- Prior Approval: Businesses must obtain prior approval from the Telecommunication and Digital Governance Regulatory Authority (TDRA) to conduct telemarketing activities.
- Training: Businesses are required to provide comprehensive training to their personnel conducting telemarketing activities on the ethics of professional conduct and the use of the Do Not Call Register.
- Recordkeeping: All telemarketing activities must be properly recorded using the form prepared by the TDRA.
- Transparency: Telemarketers must introduce the company name and the purpose of the call at the beginning.
- Source Disclosure: Businesses must reveal the source of their customer database to the TDRA upon request.
Further, businesses must ensure they pay due care and adequate attention to preventing consumer inconvenience. This includes adhering to designated calling hours (from 9:00 am to 6:00 pm local time) and avoiding deceptive or misleading practices when marketing their products or services.
Penalties for Noncompliance
Businesses violating the Decision may face significant penalties set out in Cabinet Decision No. 57/2024 of June 10, 2024, which include warnings, administrative fines (which vary depending on the type and frequency of violations), suspension of activities, and even revocation of the commercial license.
Data Protection Considerations
In addition to consumer protection requirements, businesses conducting telemarketing activities must observe data protection requirements. It is important to remember that the UAE has three data protection regimes: the mainland regime governed by Federal Decree Law No. 45 of 2021 on Personal Data Protection and separate regimes for the ADGM and DIFC free zones, each with different legal consequences for violations (see our publication regarding data protection regulations in the Middle East for more information).
Conclusion
Navigating the legal landscape of telemarketing requires a proactive approach to compliance. Businesses must stay informed about evolving regulations, invest in proper training for their staff, and implement robust systems to manage the regulatory compliance. In so doing, they can effectively mitigate the risks associated with telemarketing and ensure their practices align with the highest standards of transparency, credibility, and integrity.