ME-ALLIANCE LEGAL UPDATE
On June 10, 2024, the Council of Ministers issued a landmark decision to regulate marketing via telephone calls. This decision, prompted by a comprehensive review of pertinent legislation including the Constitution and various federal laws, aims to safeguard consumer privacy, enhance economic stability, and establish clear guidelines for companies engaging in marketing activities via telephone calls.
Regulation of Marketing Phone Calls
The decision to regulate marketing via telephone calls addresses several key objectives:
1. Organizing Marketing Activities: To maintain economic and social stability by organizing the marketing of products and services via telephone calls.
2. Ensuring Compliance: To ensure that companies adhere strictly to approved marketing channels and designated times for promoting their products and services.
3. Enhancing Consumer Protection: To mitigate unwanted marketing phone calls, thereby safeguarding consumer comfort and privacy.
Scope of Application:
This decision applies to all companies licensed within Abu Dhabi mainland and those located in free zones.
Natural persons are prohibited from making marketing phone calls using a licensed fixed or mobile number without proper authorization.
Corporate Obligations Regarding Marketing Telephone Calls:
Companies engaging in marketing phone calls must adhere to the following obligations:
• Obtain prior approval from the competent authority for marketing activities.
• Provide comprehensive training to marketers on professional ethics and the use of the Do-Not-Call Register (DNCR).
• Use local phone numbers registered under the company’s commercial license.
• Maintain a consumer communication channel solely for obtaining marketing information.
• Refrain from calling consumers registered on the DNCR.
• Keep records of all marketing phone calls.
• Notify consumers when recording marketing phone calls.
• Submit periodic reports as required.
• Adhere to the Code of Professional Conduct.
• Specify authorized times for making marketing phone calls.
• Disclose the company’s identity and purpose of the call at the beginning.
Controls on Marketing Phone Calls:
Further controls include:
• Prohibition of coercive marketing methods.
• Prohibition of deception or misleading information.
• Restriction of marketing calls to the period from 9:00 am to 6:00 pm.
• Limiting repeat calls after consumer refusal or non-response.
• Permission to use automated systems for marketing purposes.
• Seeking consumer consent before proceeding with marketing calls.
• Additional controls as determined by the competent authority.
Consumer Protection from Unwanted Marketing Calls:
Provisions for consumer protection include:
• Filing complaints with the competent authority.
• Establishment of procedures for receiving and addressing complaints.
• Authority’s right to investigate unsolicited marketing calls.
• Prohibition of personal data disclosure without consent.
• Option to register in the DNCR to cease marketing calls.
Violations and Administrative Penalties:
The Council of Ministers will define violations and penalties for non-compliance with these provisions, ensuring enforcement through cooperation with relevant authorities.
In conclusion, this decision marks a significant step towards regulating marketing phone calls. By establishing clear guidelines and obligations for companies, and robust protections for consumers, the decision aims to balance commercial interests with consumer rights. It underscores the commitment to fostering a transparent and respectful marketing environment while upholding privacy and consumer welfare.