Dh50,000 fines issued to 159 companies for violating UAE telemarketing rules

Dubai: The Dubai Corporation for Consumer Protection and Fair Trade (DCCPFT) has imposed fines of Dh50,000 each on 159 companies for violating the UAE’s recently introduced telemarketing regulations. About 174 companies received warnings.

The penalties follow the introduction of strict telemarketing regulations under Cabinet Decision No. 56 of 2024, aimed at reducing intrusive sales calls and safeguarding consumer privacy. Since the rules took effect in August 2024, authorities initially issued warnings to 174 companies, with 159 failing to comply and facing financial penalties.

However, DCCPFT also provides companies with a legal mechanism to appeal fines.

The DCCPFT - a part of the Dubai Department of Economy and Tourism (DET) – aims to curb market-disruptive practices and create a fair competitive landscape.

According to the new regulations, key guiding principles for telemarketing activities include not contacting consumers whose numbers are registered in the ‘Do Not Call Registry’ (DNCR), which is managed by TDRA, only making calls from 9 am to 6 pm, and notifying the consumer at the start of the call if it’s being recorded.    

DCCPFT also clarified that the regulatory legislation applies to all licensed companies in the UAE, including those in free zones, whose products and services are marketed through telephone calls.

The Regulations also prohibit disclosing a consumer’s personal data without their consent or trading it for reprocessing by companies that wish to market their products or services through telemarketing.

The penalties vary depending on the violation's type and severity and the offence's repetition. Law firm Al Tamimi & Co. explained the fines in a blog post. It said, “A company that fails to obtain prior approval to practice telemarketing activities from the competent authority may be penalised an administrative fine of Dh75,000 for the first time”

The second offence fine is Dh100,000 for the second time, and the third offence fine is Dh1,50,000.

A company that fails to provide comprehensive training to the company’s marketers may be fined Dh10,000 for the first time, Dh25,000 for the second time and Dh50,000 for the third time.