OREANDA-NEWS. February 26, 2008. The Federal Antimonopoly Service (FAS Russia) passed a resolution on imposing administrative fine in amount of 40 000 Rubles upon "GE Money Bank" CJSC for improper credit advertising, reported the press-centre of FAS Russia.

The advertisement of bank credits was shown in October -December 2007 on TV channels - "1 Kanal", "Rossia" and "STS" under the working title "Flamenco" and contained the following information: "Simply take up to 300 000 Rubles cash на своих условиях from 15 % per annum". FAS Russia recognized that the advertisement was improper and violated Clause 2 Part 2 and Part 3 Article 28 of the Federal Law "On Advertising".

The advertisement specified the minimum credit interest rate and changed of the interest rate; however, other terms and conditions, defining the cost of credit were shown in small, unreadable print at the last second of the commercial, which prevented consumers from acquiring this important information. Accordingly, the above information was presented in such a way that consumers would not acquire it and the information as such was practically absent in the commercial.

Following the violation, the bank was issued a determination to stop breaching the advertising legislation of the Russian Federation.

On 21st February 2008, FAS Russia passed a resolution regarding the advertiser - "GE Money Bank" CJSC - on imposing fine in amount of 40 000 Rubles.

Reference:
Clause 2 Part 2 Article 28 of the Federal Law "On Advertising": advertisements of banking, insurance or other financial services must not withhold other terms and conditions of offering relevant services, that affect he amount of income to be gained by the persons who will use the services, or the amount of expenditures to be incurred by the persons who will use the services, if the advertisement specifies at least one of such terms and conditions.

Part 3 Article 28 of the Federal Law "On Advertising": if an advertisement of the services, related to offering, using or repaying credits, contains at least one condition affecting its costs such an advertisement must contain all remaining terms and conditions defining and affecting the real credit costs for the borrowers.