Installment plan advertising to change: hidden fees to be disclosed

In Uzbekistan, new transparency requirements are being introduced for credit and installment plan advertisements. It will no longer be sufficient to show only the monthly payment amount to the buyer — the excess payment relative to the cash price of the product and the final total cost must also be clearly stated.

The new regulation is aimed at protecting buyers from additional costs hidden behind attractive advertising.

Two important figures will be shown in advertisements

In accordance with the new requirements, the following information will be mandatory in advertisements for credit, installment plans, and credit sales aimed at individuals:

• the amount of excess payment relative to the current price of the product, work, or service;

• the final total sum that the consumer will pay over the entire period.

For example, if a product costs 10 million soums in cash, the advertisement must clearly indicate the total cost when purchased through an installment plan.

New requirements to be developed by September 1

An important aspect: the official information states that the rules will not automatically enter into force on September 1, 2026, but rather that the relevant requirements will be developed by that date.

The Committee for Competition Development and Consumer Protection, together with the Central Bank and other responsible agencies, will set clear requirements for the advertising of credit products.

"So many soums per month" ads will no longer be enough

In practice, some advertisements show only the initial payment or the monthly payment amount in large letters. The buyer then has to calculate for themselves how much more expensive the product will be compared to the cash price.

After the new regulation, the main figures in the advertisement will allow the buyer to compare the following in advance:

• the difference between the cash price and the installment price;

• the actual amount of the additional payment;

• the total sum to be paid by the end of the contract.

In other words, the real price behind the catchy phrase "convenient payment" will be visible. A calculator is being added to the magic of marketing.

Other restrictions to be introduced for financial advertising

The new document also provides for a ban on including guarantees or promises regarding future income that cannot be accurately calculated at the time of signing the contract in advertisements.

It is also stipulated that at least 30 percent of the first page of a microloan agreement must be reserved for a text warning, and advertising materials must include a warning about potential negative financial consequences.

What will change for buyers?

Once the new requirements are fully implemented, consumers will be able to see the true cost of a product before opting for an installment plan. This will allow citizens to objectively assess their income and debt burden, and to compare different offers more easily.

The most significant change is that the expensive final sum hidden behind a seemingly cheap monthly payment will no longer be allowed to remain hidden in the fine print.