In response to the increasing need for robust telemarketing regulation, the UAE Cabinet has enacted Resolution No. (57) of 2024, addressing administrative violations and penalties linked to Cabinet Resolution No. (56) of 2024, which governs telemarketing practices. This resolution outlines the scope, penalties, and enforcement measures related to telemarketing violations, aiming to maintain the integrity and fairness of telemarketing activities in the country.
Legal Basis of the Resolution
The legal framework for Cabinet Resolution No. (57) of 2024 draws from several foundational laws, including Federal Law No. (1) of 1972 regarding the competencies of ministries, Federal Law No. (14) of 2016 on administrative violations in the Federal Government, Federal Decree-Law No. (14) of 2018 concerning the Central Bank, and the updated Federal Decree-Law No. (48) of 2023 concerning insurance regulation. These laws, combined with Cabinet Resolution No. (56) of 2024, provide the legal foundation for regulating telemarketing practices across the UAE.
Scope of Application
The scope of Cabinet Resolution No. (57) is broad, covering all violations committed under the provisions of Resolution No. (56) of 2024. It is important to note that if a more severe penalty exists under another applicable UAE law, it will take precedence over this resolution. This ensures that the penalties imposed for telemarketing violations are proportionate and enforceable within the existing legal landscape.
Administrative Penalties for Companies
The resolution emphasizes a graduated approach to penalties for companies that violate the telemarketing regulations. Companies can face a range of administrative sanctions, starting with a warning and escalating to fines, suspension of business activities, or even license cancellation. The competent authority responsible for enforcing these penalties will consider the severity and recurrence of the violation when determining the appropriate action. Repeated offenses within six months may result in harsher penalties, bypassing the usual graduated approach.
The penalty amounts and actions are outlined in Table No. (1) attached to the resolution, allowing companies to understand the specific consequences they may face for non-compliance. Companies are given a set period to remedy their violations, failing which further penalties may be applied.
Administrative Penalties for Individuals
In addition to companies, individuals found violating telemarketing regulations can also face administrative penalties. This applies particularly to those conducting unauthorized telemarketing calls, contrary to the provisions of Cabinet Resolution No. (56) of 2024. The resolution allows the competent authority, in coordination with licensed telecommunications providers, to impose penalties based on the severity of the offense. These penalties are specified in Table No. (2) attached to the resolution.
In cases where the same individual commits repeated violations, the competent authority can impose the strictest penalty, especially after three offenses. This clause emphasizes the importance of compliance and acts as a deterrent against frequent violations.
Role of the Central Bank
The Central Bank plays a crucial role in regulating companies and individuals involved in financial activities related to telemarketing. In coordination with the Cabinet, the Central Bank is authorized to develop its own regulations regarding violations and penalties for companies operating in financial sectors. This ensures that the telemarketing regulations are adequately enforced in industries overseen by the Central Bank, ensuring consistency and adherence to high standards of financial regulation.
Amendments to Fines
Cabinet Resolution No. (57) also grants the UAE Cabinet the authority to amend fines listed within the resolution. This can include changes through addition, deletion, or modification based on evolving regulatory requirements. Any such amendments will be proposed by the Minister of Finance and coordinated with relevant authorities, ensuring that penalties remain current and reflective of the regulatory environment.
Collection of Fines
The mechanism for collecting fines is clearly outlined in the resolution. Federal competent authorities are responsible for collecting fines, which are deposited into the State treasury. The Central Bank, for its part, is authorized to collect fines it imposes directly under its regulatory framework. Local authorities within individual Emirates are also empowered to collect fines, directing them to their respective local government treasuries.
Right to Appeal
A key feature of the resolution is the right of individuals or companies to appeal any administrative penalties imposed upon them. Appeals must be submitted within 15 days of receiving notification of the penalty and can be submitted either in writing or electronically. The competent authority is obligated to decide on the appeal within 30 days. If no decision is made during this period, the appeal is considered rejected by default. This appeal mechanism provides a fair process for addressing grievances and ensures transparency in the enforcement of penalties.
Publication and Enforcement
Finally, the resolution mandates that it be published in the Official Gazette and come into effect 60 days after publication. This allows time for affected entities to familiarize themselves with the new regulations and ensure their compliance.
Conclusion
Cabinet Resolution No. (57) of 2024 marks a significant step in regulating telemarketing activities within the UAE. By establishing clear penalties for violations and outlining a process for enforcement and appeals, the resolution aims to safeguard both businesses and consumers. Companies and individuals involved in telemarketing should take immediate steps to ensure compliance with these regulations, as the penalties for non-compliance can be severe and far-reaching. The inclusion of the Central Bank and coordination with local and federal authorities further underscores the importance of adhering to these standards.
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