Uniastrum Bank fined for ads

Russia’ Federal Antimonopoly Service fined OOO KB Uniastrum Bank for its loan ads; the bank is now to pay two 40,000-ruble fines, FAS’s press officer reports.

On February 24, 2010, the Service declared that the bank’s loan advertisements contradicted the norms prescribed in Articles 5 (part 3, paragraph 15) and 9 of the Federal Advertising Act.

‘The offense consisted in the launch of an online, bank office, and media ad campaign in March-July 2009; the advertisements promoted Uniastrum Bank credit card-based loans and a special offer that provided for a holiday in Cyprus. The advertisements actually contained information about the terms of the offer that was in contrary to fact. What is more, the ads did not contain any information as to where the customers could find out about the terms of the offer, the number of prizes, or the dates, locations, and procedures of prize-getting,’ the Service’s press office explains.

Incidentally, on the very same day FAS declared that the advertisement featuring U-Business Prime loan (published in the Finance magazine in August 2009 within a promotion article) violated Article 28 (part 3) of the Federal Advertising Act.

‘The bank’s ad failed to indicate all the terms (namely, the loan period) that affected the loan’s actual cost for the borrowing party,’ FAS reports.

In the end, after the two administrative offense lawsuits had been considered on May 19, 2010, FAS ruled that OOO KB Uniastrum Bank, the advertiser, was to pay 80,000 RUR in fine.

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