RABI HAMAMSAH (ABU DHABI)
The Cabinet Resolution No. (56) of 2024 regarding telemarketing regulation came into force on Tuesday, with fines of up to Dh150,000, including potential licence revocation for businesses breaking the regulations.
The resolution applies to all licensed companies, including those in free zones, and seeks to decrease unwanted marketing phone calls in a manner that prioritises consumer comfort and respects their privacy. It requires companies to follow specific marketing channels and time restrictions and prohibits individuals from making marketing calls for their products or services using licensed landline or mobile phones provided by local telecommunications companies.
The Ministry of Economy was given the responsibility for overseeing the general implementation as per the resolution. The Central Bank handles marketing calls for banks, financial institutions, insurance companies, and licensed professions associated with them, as well as securities and commodities trading services through the Securities and Commodities Authority. The competent authorities also handle the delegation of follow-up duties in each emirate concerning promotional calls to other institutions.
The ruling permits the competent authority in the specific industry to enforce various administrative penalties on companies found to be violating the decision.
The penalties range from a warning to administrative fines based on the violation and can escalate to temporarily halting the activity for 7 to 90 days, and ultimately revoking the licence and removing the company from the commercial register, along with disconnecting communication services and deleting the phone number.
The Ministry of Economy decides the time frame for the offender to address the violation and the associated penalty. It may choose to apply penalties gradually but can also opt to impose the maximum penalty if the violation is repeated within six months of the initial penalty.
The new regulation outlines 18 fundamental responsibilities for telemarketing with increased penalties for multiple violations. The penalties for the violations range from Dh10,000 at the lowest to Dh150,000 at the highest.
The resolution requires companies listed to get permission before engaging in phone marketing, and mandates thorough training for marketers on ethical behaviour when making marketing calls and utilising the Do Not Call Register.
The responsibilities also involve marketing using numbers registered under the company’s commercial licence in the country. Companies are not allowed to contact consumers on the Do Not Call Register for marketing purposes. They must also record marketing phone calls to consumers and inform them of the recording process at the beginning of the call. Businesses need to maintain a log of every phone call in accordance with the template provided by the appropriate agency.
When initiating a marketing call, it is crucial to clearly establish the company’s identity and reason for the call, as well as to inquire whether the consumer is willing to continue the conversation before beginning the marketing pitch. It is important to refrain from using aggressive tactics to pressure the consumer into making a purchase, and to ensure that all information provided about the product or service is accurate and truthful.
Companies cannot make marketing phone calls outside the time frame of 9am to 6pm. Additionally, they are not allowed to call back a consumer who rejects the product or service in the initial call or if the consumer does not answer or ends the call more than once per day or twice per week. It is also important for companies not to utilise automated communication systems for marketing, advertising, and promotion of their products or services.
The ruling requires companies to obtain consent before sharing or using personal data for marketing calls and to reveal where they obtained phone numbers and data when asked by authorities. They must also provide regular reports on marketing calls within a month of the due date.
The decision ensures that consumer rights are protected through a clear process where consumers can register on the Do Not Call Register, file complaints with evidence of unwanted marketing calls, and have the authority regulate and resolve these complaints.