18 Types of Violations and Penalties for Companies Breaching Telephone Marketing Regulations
The Ministry of Economy and the Telecommunications and Digital Government Regulatory Authority have announced a new decision regarding the regulations and mechanisms for organizing telephone marketing. This decision includes a list of violations and administrative penalties, which will come into effect starting mid-August 2024.
The decision outlines 18 types of violations and corresponding administrative penalties for companies that breach the regulations regarding telephone marketing, including:
- Failure to Obtain Prior Approval: Companies must obtain prior approval to engage in telephone marketing from the relevant authority. The penalties for non-compliance range from AED 75,000 for the first offense to AED 100,000 for the second offense and AED 150,000 for the third offense.
- Contacting Numbers on the Do Not Call Registry (DNCR): Companies contacting consumers for marketing purposes whose numbers are listed on the DNCR will face fines of up to AED 150,000.
- Deceptive or Misleading Marketing Practices: Engaging in deceptive or misleading marketing practices over the phone can result in fines ranging from AED 25,000 to AED 75,000.
- Using Unregistered Phone Numbers: Marketing products or services via phone numbers not registered under the company’s commercial license in the state will incur fines of up to AED 75,000.
- General Violations: Additional fines ranging from AED 10,000 to AED 150,000 can be imposed for any breaches of these regulations.
Regarding individuals, the decision specifies that:
- Individuals Engaging in Unauthorized Marketing: If an individual makes marketing calls for products or services on their behalf or on behalf of others using a licensed fixed or mobile phone number registered in their name, they will face a fine of AED 5,000. All fixed or mobile phone numbers registered in their name will be disconnected until the fine is paid.
- Repeated Violations: For a repeated violation within 30 days of the first administrative penalty, the fine increases to AED 20,000, and all phone numbers registered in their name will be disconnected for three months. For a second repeated violation within 30 days of the second administrative penalty, the fine increases to AED 50,000, and the individual will be barred from obtaining any services from licensed telecommunications companies in the state for 12 months.
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