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New Cold Calling Laws in the UAE

What You Need To Know About New Cold Calling Laws in the UAE

On 27 August, the UAE government implemented new laws against cold-callers, and the residents of the UAE could file complaints against companies that violate this law. According to the new regulations that came into effect recently by the Ministry of Economy and Telecommunications Regulatory Authority (TRA), companies engaging in constant cold-calling could face fines of up to AED 150,000 along with their License termination. 

The government has restricted the companies to make telemarketing calls only between 9am to 6pm, and not contacting the residents again on the same day if they reject your product and services. Let us discuss new cold calling laws and how the residents can avoid cold callers in detail.

What are the New Cold Calling Laws in the UAE? – Key Highlights of Cabinet Decision No. 56/2024

Cabinet Decision No. 56/2024 establishes a new framework for cold callers and telemarketing activities as follows,

Article 1 – New Cold Calling Laws in the UAE

Telemarketing phone calls are calls made by an individual or a company for advertising, marketing, or promoting their products and services. It also includes social media messages and SMS. 

The Cabinet also introduces the Do Not Call Register (DNCR), a phone call directory to protect consumers from unwanted calls. 

Article 2 – New Cold Calling Laws in the UAE

It outlines the primary goal of the regulation, which is to organize cold calling activities, reducing unsolicited calls to safeguard consumer privacy and support social and economic stability. 

Article 3 – New Cold Calling Laws in the UAE

The regulations are also applicable to all licensed companies in the UAE, including the free zone ones. It prohibits cold calling without a suitable license. 

Article 4

The article mentions the obligations of companies, such as getting approval for telemarketing, maintaining call records, using local registered phone numbers, and respecting the DNCR. They must also train workers on ethical market practices and adhere to specific calling hours. 

Article 5

The article mentions taking measures on telemarketing/cold calling practices to prevent unethical practices. It restricts calls to specific hours, which are 9:00 am to 6:00 pm, to avoid calling on numbers registered on the DNCR, misleading methods, or unfair pressure, and to limit follow-up calls. 

Article 6

It highlights consumer protection, enabling customers to register in the DNCR, protect their confidential data, and file complaints. 

Article 7 

The article imposes fines on violations, which include warnings and license cancellation, according to the severity of the breach. 

Article 8

The article emphasizes the cooperation of authorities in educating consumers and companies, as well as enforcing these regulations. 

Article 9

It outlines the roles and responsibilities of the Ministry, Securities and Commodities Authority, Central Bank, and local authorities managing the telemarketing activities. 

Article 10

Article 10 grants the Minister the authority to establish further rules to stop any efforts to escape the law. 

The authorities have set these laws due to the possibility of unwelcoming telemarketing calls, which are inappropriate and annoying for customers. The government is taking measures to protect customer privacy by mandating prior approvals and limiting telemarketing call hours.

Administrative Fines Under the Cabinet Decision No. 57/2024

The Cabinet introduces fines for violating the cold calling rules for both individuals and companies. Additionally, it includes warnings, penalties, and potential cancellation of licenses for companies, while individuals will face fines and other restrictions. Fines may be revised through proposals prepared in consultation with the relevant authorities, while the Central Bank and federal authorities ensure their collection. Impacted parties may file a grievance within 15 days of being notified, and authorities will issue a decision within 40 days. 

Fines Imposed on Cold Callers in the UAE – New Cold Calling Laws in the UAE

The authorities have set 18 different types of penalties for cold callers, and the fines for these violations range between AED 10,000 and AED 150,000. Some of these penalties are as follows.

  • If a company does not get prior approval for telemarketing calls, it can face fines up to AED 75,000 for the first time, AED 100,000 for the second, and AED 150,000 for the third time.
  • Companies that fail to provide training in the code of conduct related to telemarketing to their workers will face fines ranging from AED 10,000 to AED 50,000.
  • According to Article ⅘, the use of unregistered numbers results in a fine of AED 25,000 for the first violation, AED 50,000 for the second, and AED 75,000 for the third. 
  • According to Article ⅘, contacting customers listed in the DNCR registry can result in fines of AED 50,000 on the first offence, AED 75,000 for the second, and AED 150,000 for the third. 
  • Articles 4/6 and 4/8 impose fines on companies failing to maintain and provide telemarketing call records. On the first violation, the fine is AED 10,000, AED 25,000 for the second, and AED 50,000 for the third. Additionally, as mentioned in article 4/7, if the company fails to record or inform customers, they may face fines of AED 10,000 for the first time, AED 20,000 for the second, and AED 30,000 for the third violation.
  • Articles 4/11 and 4/12 mention fines of AED 10,000 for the first violation, to AED 30,000 for the third, if the company fails to introduce themselves and tell the purpose of the call, or provide a source of phone numbers.
  • Article 5/1 to ⅚ mentions fines of AED 10,000 to AED 75,000 if the company makes calls outside the allowed hours, deceives, or uses aggressive methods. 
  • As mentioned in articles 5/4 and 5/5, if the company repeatedly calls customers or misuses automatic systems, it can face fines from AED 10,000 to 50,000.
  • As described in Article 6/4, if a company discloses or trades consumer data without permission, it may face fines ranging from AED 50,000 to AED 150,000.

Fines on Individuals – New Cold Calling Laws in the UAE

According to Article 3/2, Individuals making marketing calls may face a fine of AED 5,000 on the first offence and suspension of their phone number until they pay their fines. If they repeat the offense within 30 days, they will face a penalty of AED 20,000, a three-month suspension, and AED 50,000, along with a one-year ban on the third offense.

Methods to File Complaints Against Cold Calling Firms

The deputy director general of the Telecommunications and Digital Government Regulatory Authority (TDRA), Mohammad AL-Ramsi, has stated the following rules recently

  • If the telemarketing company is violating the rules, you have to make complaints to their relevant licensing authorities.
  • If it is a commodity, investment, or security company, then you can approach the Securities and Commodities Authority (SCA). 
  • If it is related to a bank, you can submit complaints to the central bank in the UAE.
  • If you receive a call from a personal number to sell you commodities or services, you can contact TDRA to file your complaint.
  • If it is a licensed company in an emirate, then the customers have to approach relevant authorities.

“The Ministry of Economy prioritizes this initiative to prevent bothersome marketing calls made to the public, ensure that companies follow the appropriate guidelines and timings for promoting their products or services, and minimize the number of unwanted marketing calls,” said Safeya Hashem Al Safi, acting assistant undersecretary at the Ministry of Economy.

What to do if you get a cold call from a personal number?

According to new cold calling laws in the UAE, telemarketers are prohibited from making calls from their numbers, and if a person receives such calls without the company name or number, they can file a complaint via SMS.

Method to file a complaint via SMS. Type “Report” and phone number and send this SMS to 1012.

Consumers can go to the SCA website to fill in information and send emails to file complaints related to the SCA activities. The SCA authorities will investigate the matter, and if they find that the company has violated the rules, they will impose fines.

How to Protect Yourself from Persistent Cold Callers?

During the media briefing on Thursday, the UAE Ministry of Economy stated, “Do not call the clients who have registered in the ‘do not call registry’ (DNCR).” The DNCR is a phone directory that includes the number of residents who do not want to get calls from telemarketers. 

The DNCR registry was set up by the TDRA (The Telecommunications and Digital Government Regulatory Authority). The TDRA works with other organizations to set laws and regulations, raise public awareness, share data, and supervise individuals.

Summary

With the new cold calling laws in the UAE in effect, the main priority is respecting the privacy of customers and getting prior approval from authorities. Companies must train their employees to use the DNCR registry when making telemarketing calls. With the help of new cold calling laws, firms can adopt modern and customer-friendly marketing approaches and avoid hefty fines. 

FAQs

Cold calling is an effective marketing tool, but with the increase of social media and SEO, this approach has become out of style. This tool can still be used in different industries, such as commercial industries and real estate markets, by understanding the needs of your customers.

Yes! Cold calling is legal, but if you do not follow the new laws imposed by the UAE government, you could face heavy fines.

It is illegal if the telemarketers contact the personal phone number of a worker in the selected company.


One thought on “What You Need To Know About New Cold Calling Laws in the UAE

  1. Hansgeorg Sterseck says:

    We have tried to register on 1012 but unable to please adivse e mail address to register complaint thank you

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