Telemarketing Regulations in the UAE

The United Arab Emirates (UAE) recently introduced Cabinet Resolutions No. 56 and No. 57 of 2024, aimed at regulating telemarketing activities to enhance consumer protection. These regulations significantly impact how businesses, including those in free zones, conduct telephone marketing campaigns.

Key Obligations Under the Telemarketing Regulations

  • Prior Approval: Businesses must secure explicit approval from relevant authorities before initiating telemarketing.
  • Employee Training: Mandatory training for telemarketers on ethical conduct and adherence to the “Do Not Call” registry.
  • Local Number Usage: All marketing calls must originate from locally registered numbers.
  • Recording Calls: Calls must be recorded, and consumers must be informed at the outset of each call.
  • Consumer Preferences: Businesses must respect consumers listed in the “Do Not Call” registry and those opting out during calls.
  • Operational Hours: Telemarketing calls permitted only between 9 AM and 6 PM.

Integration with UAE Data Protection Law

The Federal Decree-Law No. 45 of 2021 (PDPL) reinforces these regulations by setting standards for handling personal data, aligning with international data protection practices such as GDPR.

  • Consent Requirements: Explicit consent is required for data processing and telemarketing calls.
  • Data Subject Rights: Consumers have the right to access, correct, and request deletion of their personal data.
  • Cross-Border Transfers: Businesses must ensure adequate safeguards when transferring data internationally.
  • Security and Compliance: Mandatory data security measures, appointment of Data Protection Officers, and breach reporting.

Telemarketing Practices in the UAE Real Estate Industry

The real estate sector, known for its heavy reliance on direct marketing, faces significant adjustments under the new telemarketing regulations. Real estate agencies and agents have long depended on cold calling and direct outreach to market properties. The new framework imposes stricter controls on these practices, requiring greater accountability and transparency.

Specific Compliance Requirements for Real Estate Agencies

  • Authorization: Real estate agencies must obtain clear prior authorization before starting telemarketing campaigns.
  • Transparency: Real estate agents must disclose the source of consumer contact details upon request.
  • Ethical Marketing: Strict prohibition on misleading or pressurized sales tactics.
  • Use of Registered Local Numbers: All calls must be made from locally registered phone numbers.
  • Do Not Call Registry: Agents must regularly update their contact lists against the registry to avoid calling consumers who have opted out.
  • Timing of Calls: Real estate agents are restricted to contacting consumers between 9 AM and 6 PM.

Recent Enforcement Actions in the Real Estate Sector

The Dubai Corporation for Consumer Protection and Fair Trade (DCCPFT) has already begun enforcing these regulations within the real estate industry. Several real estate agencies have been fined for non-compliance:

  • In February 2024, 30 real estate companies in Dubai were fined AED 50,000 each for unauthorized telemarketing practices, including calling consumers listed in the Do Not Call Registry (Dubai Land Department)
  • In a broader enforcement action, 159 companies in Dubai, including real estate firms, were collectively fined AED 50,000 each for violating telemarketing rules, amounting to a total of AED 3.8 million in fines (Khaleej Times).
  • The total fines imposed on violating telemarketers across the UAE have now reached AED 3.8 million, highlighting the strict regulatory environment and the seriousness of non-compliance (Khaleej Times).

This swift enforcement signals a strong commitment by UAE authorities to regulate telemarketing within the real estate sector, where consumer complaints about intrusive calls have historically been high.

Penalties for Non-Compliance

Penalties include significant fines, suspension or cancellation of licenses, removal from commercial registries, and potential disruption of communication services. Specific financial penalties include:

Violation First Offense Second Offense Third Offense
Failure to obtain prior approval to engage in telemarketing activities AED 75,000 AED 100,000 AED 150,000
Failure to provide employee training on telemarketing ethics AED 10,000 AED 25,000 AED 50,000
Unauthorized disclosure of personal data AED 50,000 AED 75,000 AED 150,000

Recommendations for Compliance

  • Conduct comprehensive internal audits to ensure compliance.
  • Regularly update databases against the “Do Not Call” registry.
  • Implement rigorous staff training and robust data management protocols.
  • Develop clear guidelines for disclosing the source of consumer contact details.
  • Ensure that real estate agencies and agents fully understand the boundaries of ethical telemarketing.
  • Review data collection and processing practices to ensure alignment with the PDPL.

Conclusion

The convergence of telemarketing regulations and the UAE PDPL represents a major shift towards consumer protection and ethical marketing standards. Businesses must proactively comply to avoid serious legal and financial repercussions. The real estate sector, in particular, faces increased scrutiny and enforcement due to its historically aggressive marketing practices.

To ensure your business remains compliant and protected, consult LYLAW for expert legal guidance tailored to your industry.