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UAE: Cold callers worry about targets, salaries amid new regulations

Starting from mid-August 2024, gradual administrative penalties will be imposed on violators, ranging from warnings and fines up to Dh150,000

Published: Wed 12 Jun 2024, 6:00 AM

Updated: Wed 12 Jun 2024, 3:59 PM

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For Sri Lankan expat Mohammed A, a job offer in Dubai meant that he could hope for a better life and repay debts accrued due to a failed business. The entrepreneur came to the UAE four months ago and took up a telemarketing job.

Now, the UAE government has announced tighter regulations on telemarketing via phone calls, with fines of up to Dh150,000.

Mohammed said he was worried but not too concerned. "Ever since I started my job (as a cold caller), I have been mindful of not calling any client more than necessary," he said. "So far, I have not had anyone rude to me or disrespectful. As the rules have now been tightened, I will err more on the side of caution with my work. I hope that even with the regulations, I am able to meet my targets."

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Starting from mid-August 2024, gradual administrative penalties will be imposed on violators, ranging from warnings and fines up to Dh150,000. The violating company may face more severe measures such as partial or complete suspension of activity, licence cancellation, removal from the commercial registry, cutting off telecommunications services, and deprivation of telecommunications services in the country for up to one year.

Meanwhile, several UAE residents have shared how cold callers often call at inappropriate times and will not take no for an answer.

“I was honestly happy to read about the news,” said Briton Emma Stewart. “I have had people call me for credit cards, and no matter how often I tell them that I am a stay-at-home mum and don’t need a credit card, they would not leave me alone. I eventually had to block several numbers. I can’t wait to talk about this law to the next person who cold calls me.”

Indian expat Aneesh owns a direct sales agency which services three leading banks in the country. He has been running the agency for more than two years and employs almost 50 people. According to him, the new rules will make the situation more challenging than it already is.

“Currently, our landline conversion rates have dropped significantly,” he said. “Ever since the name of the company began to appear on phone calls, people rarely answer. Out of 100 calls an agent makes, only 25 are answered.”

The new rule stipulates that individuals are prohibited from making marketing calls using phones registered in their names. All marketing calls must originate from phones registered in the name of the licenced telemarketing company.

According to him, agencies will have to go back to traditional selling methods. “We will have to start visiting companies and try to convince them face to face or rely on references,” he said. “These are the two methods we will reintroduce because of the ban. This move is going to impact our revenues severely. Unfortunately, most banks don’t want to hear about the rule change and only want to focus on results.”

Mohammed is most worried about not meeting targets. “I have a target of five cards a month,” he said. “The pay is Dh3,000. For every card that is not sold, a penalty of Dh500 is deducted. So if I don’t sell any cards, I will not be paid at all.”

A gemologist by training, Mohammed was running a gemstone business in Sri Lanka when he faced some setbacks. “I was cheated by some people and my business came crashing down,” he said. “I have a wife and daughter to support. So when I got this job offer, I decided to take it so that I could pay off my debts and feed my family.”

Another cold calling agent, Judy (name changed to protect identity), said she often faced issues of abuse. The Syrian expat has been making marketing calls for a financial training centre and is often met with expletive words.

“I call people during the timing stipulated by the government,” she said. “A lot of people don’t pick up. Some cut the call as soon as I started speaking; very few were interested. Some even try to flirt with me or make unwanted advances. These are situations that my male colleagues don’t face.”

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