UAE to impose fines up to $40,000 for unauthorized telemarketing calls

DUBAI: The UAE has announced plans to clamp down on persistent cold callers, with companies who violate the new rules facing fines of up to Dh150,000 ($40,838) and possible termination of their operating licenses.

The regulations are being introduced by the Ministry of Economy and the Telecommunications and Digital Government Regulatory Authority to protect the public from rogue telemarketers, according to local reports. 

The new guidelines apply to all licensed companies in the Emirates, including those in free zones, which promote products by calling landlines and mobile phones.

From August this year, telemarketing calls will be restricted to between 9 a.m. and 6 p.m. Call-backs are prohibited if a consumer rejects a service or product, and no same-day follow-up calls are permitted.

Companies must obtain prior approval from the authorities. Marketing calls must originate from numbers registered to licensed companies, not individuals.

Customers can file a complaint for any violations. Penalties include warnings being issued, fines of up to Dh150,000, partial or total suspension of activities, license cancellation, and disconnection of telecommunication services for up to one year.

“The resolutions aim to regulate telemarketing to maintain economic and social stability, ensure companies adhere to designated channels and times for marketing, and reduce unwanted marketing calls to respect consumers’ privacy,” said a statement from the government’s media office.

Companies must exercise due care in their marketing activities to avoid disturbing consumers and adhere to the highest standards of transparency, credibility, and integrity, it added.

The new regulations are part of the government’s ongoing efforts to safeguard consumer rights and ensure companies comply with established rules. In January 2022, the TRA launched the Kashif service, which shows the origin of calls, to reduce the number of anonymous calls received by residents. By the end of that year, all private companies had to register their phone numbers with the Kashif service.

The Do Not Call Registry, in place since September 2022, helps stop unwanted calls. Telemarketers must now receive individuals’ consent before making promotional calls and are advised not to call numbers listed in the DNCR without it.

Companies that fail to obtain prior approval can be fined Dh75,000 for the first offense, Dh100,000 for the second, and Dh150,000 for the third. Fines of up to Dh150,000 can be imposed for calling individuals registered the DNCR. Additionally, financial penalties ranging from Dh25,000 to Dh75,000 can be levied for misleading or deceiving customers during sales calls.

Authorities stated that companies could face telemarketing activity suspension for seven to 90 days, license cancellation, removal from the commercial register, and disconnection of telecommunication services for rule violations.