FAS INITIATED CASE AGAINST ALFA-BANK ON THE GROUNDS OF VIOLATION OF ADVERTISING LEGISLATION

Bank posted all the essential information in explanatory footnotes in small print for a short time in the advertisement

FAS Russia received complaints from citizens about the advertising of the Alfa-Bank credit card.

The video indicated in large print information about the possibility of annual interest-free use of the card. In addition, the advertisement announced and noted in large print the provision of 100 % cashback for the first purchase. At the same time, significant information about the conditions for obtaining an interest-free period, the maximum amount of cashback, as well as the minimum amount of the first purchase to receive it was reported in explanatory footnotes in a difficult-to-understand way within a short time.

As a result, the form and time of placing the text in explanatory footnotes did not allow consumers to get all the information necessary for an informed choice.

According to FAS Russia, if the essential conditions for the provision of financial services are formally present in advertising, but cannot be perceived by the consumer, they are not properly communicated to him. Thus, advertising misleads the consumer about the service offered.

Besides, the advertisement claimed that "Alfa-Bank is the best mobile bank", followed by an explanatory footnote: "according to Markswebb". However, it was presented in a difficult-to-understand way for a short time and could not be considered as an objective criterion for comparing the advertised product with the products of other banks.

FAS Russia will evaluate the video of Alfa-Bank JSC for violations of advertising legislation. If found guilty, the bank faces liability in accordance with the Law on Advertising*. If the organization is found guilty, it faces a fine.

It should be reminded that within a month this is the third case that the authority has initiated against Alfa-Bank JSC due to misleading consumers and omission about the essential conditions for the provision of one of the products in advertising.

For reference:

* Part 6 of Article 38 of the Law on Advertising