UAE Implements Strict New Telemarketing Rules with Fines up to AED150,000

Effective from mid-August 2024, the Ministry of Economy and the Telecommunications and Digital Government Regulatory Authority (TDRA) announced a new resolution regulating marketing through phone calls, with measures aimed at curbing the intrusive nature of telemarketing and ensuring privacy for consumers.

The newly introduced regulations stipulate severe penalties for violations, including fines up to Dh150,000, warnings, and even the possibility of partial or total suspension of activities. These sanctions extend to the cancellation of licenses and the denial of telecommunication services within the UAE for up to one year.

The provisions apply to all licensed companies in the UAE, including free zones companies, engaging in marketing products and services through marketing phone calls initiated by the company or its employees to the consumer for marketing, advertising, or promoting products or services they offer or on behalf of their clients, using a landline or mobile phone number, this includes marketing text messages and marketing messages through social media applications.

The Ministry of Economy will oversee the implementation of these resolutions under the prevailing legislation in the country, in coordination with the Telecommunications and Digital Government Regulatory Authority, the Central Bank of the UAE, the Securities and Commodities Authority, local licensing authorities, and relevant entities, each according to its jurisdiction.

The resolutions stipulate that companies should obtain prior approval from the competent authority to legally practice telemarketing. The authority is the federal or local government entity (each according to its jurisdiction) entitled to licensing or regulating economic activities.

The newly-announced norms prohibit individuals from initiating marketing phone calls for products or services they offer in their name or on behalf of their clients, using a landline or mobile phone number registered under their names at telecommunications companies in the UAE.

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