FAS RUSSIA FINED FC OTKRITIE BANK FOR INAPPROPRIATE ADVERTISING

The bank did not specify the essential terms of the loan in the advertisement, thereby misleading consumers

Earlier, the FAS Russia received an appeal from the Bank of Russia concerning signs of a violation in an advertisement for a consumer loan from FC Otkritie Bank, which was distributed on the Internet.

The advertisement provided information attractive to consumers about the 4% rate and the amount of up to 5 million rubles for the loan. However, other essential conditions were not specified.

Thus, consumers received incomplete information about all the terms and conditions of the loan that determine its value, such as the term of the loan and the condition for concluding an insurance contract.

The FAS Russia initiated a case against FC Otkritie on the grounds of violation of the Law on Advertising and fined the bank 700 thousand rubles in accordance with the Administrative Code of the Russian Federation.**

Reference:

*part 3 of Article 28 and Part 7 of Article 5 of the Federal Law “On Advertising”

**part 6 of Article 14.3 of the Administrative Code of the Russian Federation