UAE’s real estate sector has evolved significantly over the years and is still going strong. Real estate professionals have adapted various strategies to up their game. One such method is telemarketing, a modern way to interact with clients and increase lead generation and property deals. There is a set of telemarketing rules in the UAE that prioritises customer privacy and consent.
Starting from 27th August 2024, the UAE government has introduced new telemarketing rules. The telemarketing companies alongside real estate agents must adhere to the set regulations, or else they will be charged with hefty fines. Also, if an agent repeats the same violation, the penalties will increase.
Here are the details of violations and new telemarketing rules in the UAE for real estate agents.
Latest Telemarketing Regulations in the UAE
Many buyers and renters hire a real estate agent for their expert advice in property transactions. These professionals also acquire clients via different channels such as telemarketing. That’s where the new UAE telemarketing regulations come into play, effective from 27th August 2024.
The regulations come under Cabinet Resolution No. (57) of 2024. They are issued by the Telecommunications and Digital Government Regulatory Authority (TDRA). These rules will prevent the agents from cold-calling the customers every now and then, creating annoyance.
The authority has categorised the penalties into three types: first, second and third. A penalty will increase with each repeated violation. Fortunately, if a customer faces such violations, they can immediately report to the authorities.
In addition, telemarketing companies in the UAE must train their employees with the principles of the ‘Do Not Call’ Register. Let’s take a look at the latest telemarketing regulations in the UAE and associated penalties.
UAE’s new telemarketing regulations, Violations and Penalties
The following practices fall under the new telemarketing rules in the UAE. Knowing these rules will add to the credibility of the real estate agent and how their professionalism is perceived.
Operating Hours
Telemarketers and cold callers can call the customers only from 9:00 am to 6:00 pm. If they make calls after the specified time, they will receive a fine of AED 10,000. Also, for repeat violations, the penalty can amount up to AED 50,000.
If a person declines the offered service during the first call, the real estate agent must not call them again the same day. For repeated calls on the same day or two times a week even after the refusal, the fine is AED 10,000 to AED 50,000.
That said, the agent must be mindful of the residents’ privacy, a smart strategy to generate quality leads in real estate. They must not behave inappropriately to persuade the residents for their services or products. Also, a fine of AED 50,000 will be imposed for pressurising the consumer.
Negligence to Obtain Approval
Companies who practise telemarketing without any prior approval will get a fine of AED 75,000 for the first time. They will then be fined AED 100,000 for the second time. For the third time of violation, the fine will be increased to AED 150,000.
Failure to Provide Adequate Training
Telemarketing companies must train their employees in line with the Authority’s code of conduct. This not only lines up with the new UAE telemarketing regulations but also helps the agents in connecting with warm leads. Failure to do so will result in a penalty of AED 10,000 to AED 50,000.
Unregistered Numbers
If an agent’s number is not registered under the commercial licence, they will be fined AED 25,000 to AED 75,000 for making calls. To avoid such hefty fines, companies must keep a track record of marketing phone calls and enter it in the Authority form. If this rule is not followed and repeated in the future, the penalty will reach up to AED 50,000.
Calling DNCR Numbers
The agents are prohibited from calling the DNCR (Do Not Call Registry) numbers marketing their services. If they still do so, a fine of up to AED 150,000 will be imposed.
Notify and Inform the Customers
Respectful and clear communication is one of the effective tips for real estate agents. The telemarketing agents must inform the customers if they are recording the call at the very beginning. Otherwise, they will face a penalty of AED 10,000 to AED 30,000.
The agent must make the call’s purpose clear to the customer at the beginning. It is also one of the do’s and don’ts’ of receiving a phone lead. If they neglect this rule, a fine of AED 30,000 for repetitive violations has been set by the Authority.
Recording and Reporting
Agents must record their customer marketing calls. Otherwise, they must pay financial penalties ranging from AED 10,000 to AED 50,000.
The companies must also submit periodic reports to the Authority. This report must contain the marketing call record set from the report date for a month. In addition, negligence to this rule will cost the company to pay a financial penalty of up to AED 30,000.
Behavioural Conduct
An unprofessional attitude is a deal-killing behaviour that real estate agents should avoid. That said, cold callers and agents must inquire about the consumer’s desire to complete the call beforehand. If they neglect these questions and continue with the marketing services, fines of AED 10,000 to AED 30,000 will be added to their names.
Disclosing Personal Details of the Customers
If a company or an individual fails to disclose the source from which they acquired the consumers’ information, they will be charged. For such offences, the Authority can levy them up to AED 75,000.
If a company discloses customer information for trading purposes or without consent, it will be fined AED 50,000. This is the case for a first-time violation. If it proceeds to a third violation, the amount can go as high as AED 150,000.
Provision Violations
Callers who violate the rules while using the company’s telemarketing services can be fined up to AED 50,000. This penalty applies to anyone not adhering to the new telemarketing rules in the UAE.
Unauthorised Marketing Calls
If an agent conducts a marketing call using a phone number registered in their name, they will face an AED 5,000 fine. All their registered phone numbers will be cut off until the fine is paid for the first violation.
For a second violation, the fine increases to AED 20,000. Also, all their numbers will be cut off for 3 months.
If the same violation is repeated a third time within 30 days, the fine rises to AED 50,000. Moreover, the caller will be barred from using any telecommunication services in the UAE for 12 months.
FAQs
What are the new rules for telemarketing in the UAE?
UAE’s new telemarketing regulations include no cold-calling after specific hours and recording the marketing calls after informing the customer.
Is it legal to cold call in the UAE?
Cold-calling is only allowed from 9:00 am to 6:00 pm.
What is telemarketing in real estate?
Telemarketing in real estate involves using phone calls to reach potential clients, promote properties and generate leads for real estate transactions.
These were some of the new telemarketing rules in the UAE. First announced in June 2024, these rules will be implemented from August 27, 2024. The said regulations will help transform the telemarketing sector in UAE’s real estate, further improving its effectiveness and customer services.
Moreover, real estate agents must comply with these laws if they wish for real estate success in the UAE. These rules are equally important for those who wish to do business with such professionals in renting or buying properties in the UAE.
As for those seeking to invest, new projects in the UAE offer a plethora of choices to choose from.
Stay connected with dubizzle’s property blog to learn more about UAE’s real estate market.
