Over 20 banks fined for misleading advertising

The Competition Committee has imposed financial penalties on more than 20 commercial banks and microfinance organizations for violating advertising legislation requirements.

Within the scope of its authority, the Committee monitors compliance with consumer protection and advertising laws. Monitoring and analysis revealed that advertisements violating legal requirements were being placed in mass media, on websites, and across social networks.

It is reported that the majority of such cases involve the advertising of financial services. Some advertisements provided misleading or inaccurate information to consumers.

According to Article 43 of the current Law "On Advertising," advertisements for financial services must be clearly distinguishable from other information. They must not abuse consumer trust or exploit their lack of experience or knowledge.

Furthermore, information not directly related to the advertised financial service cannot be provided. Terms that are significant for concluding a contract must be fully disclosed.

The Committee's investigations found that some advertisements completely omitted essential information such as interest rates on deposits and loans, validity periods, minimum requirements, additional fees, microloan terms, or brokerage and insurance costs.

In some cases, this information was provided in a very brief, ambiguous, or difficult-to-understand format for the consumer. There were also instances of misleading consumers through the use of ambiguous phrases, exaggeration of terms, and the use of keywords related to the names or trademarks of other organizations in financial service advertisements.

The Competition Committee reminded that information in financial service advertisements must be provided in a clear, complete, and understandable format for consumers. Information must not be presented in small, hard-to-read fonts, in colors that blend into the background, or as hidden text.

The Committee stated that if cases of posting inaccurate or misleading information are identified, financial sanctions will be applied in accordance with the established legal procedure.