Authorities crack down on non-compliant businesses following implementation of new consumer protection regulations
Dubai’s regulatory body has taken strict action against companies violating the emirate’s telemarketing rules, resulting in substantial financial penalties. The move represents a significant step in protecting consumer privacy rights across the UAE.
New Telemarketing Regulations Lead to Hefty Penalties
The Dubai Corporation for Consumer Protection and Fair Trade (DCCPFT) has issued fines of Dh50,000 each to 159 companies found in breach of the UAE’s telemarketing regulations. These penalties follow the introduction of Cabinet Decision No. 56 of 2024, which established stringent rules governing telemarketing practices.
Initially, the DCCPFT issued warnings to 174 companies regarding compliance with the new regulations. However, 159 of these businesses failed to adhere to the guidelines, resulting in financial penalties.
The regulations, which came into effect in August 2024, aim to reduce unwanted sales calls and protect consumer privacy. Companies that have received fines can appeal through legal channels provided by the DCCPFT.
Key Telemarketing Guidelines
The DCCPFT, operating under the Dubai Department of Economy and Tourism (DET), has implemented several key principles for telemarketing activities:
- Companies must not contact consumers whose numbers are registered in the ‘Do Not Call Registry’ (DNCR), managed by TDRA
- Telemarketing calls are restricted to between 9 am and 6 pm
- Consumers must be notified at the start of the call if the conversation is being recorded
- The regulations apply to all licensed companies in the UAE, including those in free zones
- Disclosure of a consumer’s personal data without consent is prohibited
- Trading personal data for reprocessing by companies wishing to market products or services is not allowed
Penalty Structure
The fines imposed vary based on the type and severity of the violation, as well as whether the offence is repeated. According to information shared by law firm Al Tamimi & Co.:
- First-time failure to obtain prior approval for telemarketing activities: Dh75,000
- Second offence: Dh100,000
- Third offence: Dh150,000
Companies that fail to provide comprehensive training to their marketers face fines of:
- First offence: Dh10,000
- Second offence: Dh25,000
- Third offence: Dh50,000
The implementation of these regulations demonstrates Dubai’s commitment to creating a fair competitive landscape and protecting consumers from intrusive marketing practices.
Key Takeaway
Dubai’s strict enforcement of telemarketing regulations with Dh50,000 fines for 159 non-compliant companies signals a strong commitment to consumer privacy protection. Businesses must now adapt their marketing strategies to comply with the new guidelines or face significant financial penalties.
JobXDubai 
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