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Telemarketing Regulation in the UAE

Issued Date

08 Feb 2024

The Lead Entity

Ministry of Economy

Sector

Economy and Business

Public Policy Document

Introduction

Smartphones and digital communication tools are essential for marketing and exchanging goods and services. As marketing strategies evolve and the demand for marketing services increases—whether by providers of goods and services or specialized marketing companies—the rise in economic activity has highlighted the problem of unwanted communications. Unregulated marketing practices in various sectors have led to intrusive calls and unsolicited commercial messages, infringing on consumer privacy.

The policy aims to establish a robust and effective system for licensing and monitoring companies that market products and services via phone calls, either directly or through their representatives. The policy seeks to curb this issue, protect consumer rights, and ensure a fair and hassle-free shopping experience. By maintaining integrity and ethics in the digital environment, the policy ensures transparent and secure information availability for consumers.

This measure reflects the UAE's commitment to protecting consumer rights and enhancing the shopping experience, contributing to long-term economic and social stability.

Policy Objectives

  1. Organize the marketing of products or services through telemarketing in order to maintain economic and social stability.
  2. Ensure that companies comply with marketing channels and times for products or services provided by or through them.
  3. Reduce unwanted telemarketing calls to ensure consumer comfort and avoid violating their privacy.
     

Priorities & Key Components

  1. Oversight and Regulation:
    • Enhance oversight by relevant authorities, such as the Ministry of Economy, the Telecommunications and Digital Government Regulatory Authority, local licensing authorities, and the Central Bank of the UAE. Each authority, according to its jurisdiction, must monitor compliance with the policy and enforce penalties in cases of violations.
  2. Penalties:
    • Implement administrative sanctions and fines on non-compliant companies, with increased penalties for repeat offenders. This aims to encourage and motivate such companies to adhere to the policy and improve compliance with the regulations governing telemarketing.
  3. Awareness and Education:
    • Conduct continuous campaigns to inform consumers about their rights regarding personal data protection and how to handle telemarketing calls. These campaigns should include information on how consumers can report unwanted telemarketing calls.
    • Regularly assess the effectiveness of the policy and the implementation plan, making improvements as needed.
    • Work with relevant security entities, including those combating fraudulent calls in order to identify their sources.
  4. An Integrated National Registry: 
    • Establish an integrated national registry to enable relevant authorities to monitor and analyze fraudulent and unwanted telemarketing calls, as well as potential violations. This registry will be connected to, or included within, the existing registry managed by the Telecommunications and Digital Government Regulatory Authority.
  5. Coordination of Efforts:
    • Cooperate among various relevant entities, such as the Ministry of Economy, the Telecommunications and Digital Government Regulatory Authority, and the Central Bank of the UAE, to intensify communication and coordinate efforts in enforcing the policy and periodically evaluating the plan.
  6. Updating Licensing and Permit Requirements for Marketing Companies:
    • Marketing companies must secure approval from the relevant licensing authorities (the local authority responsible for issuing commercial licenses) before initiating any marketing campaigns that involve making telemarketing calls to individuals and organizations.
  7. Encouraging Best Practices for Marketing Companies:
    • Encourage marketing companies to employ identity verification technologies before making calls, such as call authentication or identity confirmation via voicemail.
  8. Geographical Compliance:
    • Entities must adhere to the geographical boundaries specified in their licenses and not work or engage in marketing outside these boundaries without permission.
  9. Restriction of Activity Within the Emirate:
    • Telemarketing activities must be confined to the jurisdiction of the local licensing authority.
  10. Licensing for Activities Outside the Emirate:
    • To provide marketing services to clients outside the Emirate, companies must obtain a license from the local licensing authority in the respective Emirate.
  11. Adherence to Geographical Boundaries:
    • Companies must comply with the geographical boundaries specified in their license and refrain from conducting marketing activities outside these boundaries without a permit.
  12. Information Sharing with Relevant Entities:
    • Provide mechanisms for sharing information about the targeted geographical area with relevant entities to ensure effective regulatory and oversight efforts.
  13. Controls for Licenses for International Clients:
    • When providing services to international clients, strict controls must be applied, and licenses must be obtained from the relevant local authorities in the target countries.
  14. Periodic Reports:
    • Submit regular reports to the licensing authority detailing the geographical scope of telemarketing activities and telemarketing calls, with these reports updated regularly.
  15. Penalties for Overreach:
    • Impose strict penalties for exceeding the geographical scope permitted in the license to ensure full compliance.

Expected Outcomes

  1. Ensure community well-being by addressing telemarketing calls, which have become a source of annoyance for many segments of society.
  2. Reflect the country's commitment to protecting consumer rights and ensuring a fair and hassle-free shopping experience.
  3. Increase trust among telecommunications service users by providing high-quality services that ensure the protection of consumers' personal data.
  4. Create a fair competitive environment among competing companies without using unwanted advertising and promotional methods.
  5. Improve service levels and quality by addressing unwanted telemarketing calls.
  6. Enhance economic and social stability.
     

Target Audience

Community members, companies marketing services and goods through telemarketing, and telecommunications companies.