The Federal Antimonopoly Service of Russia (FAS) has noted an increase in ads violations of financial services in 2019. The Russian FAS reports that financial services ads accounted for 22.1% of all advertising violations.
14 April, 2020 | AtoZ Markets – The Federal Antimonopoly Service of Russia (FAS) is the federal executive government body that monitors the enforcement of antitrust law and related areas. In all segments, financial services accounted for the largest number of ads violations in Russia, according to the FAS. The total number of violations of the Advertising Law was 22.1% in 2019, against almost 12.75% in 2018. Russian FAS summed up the results of state supervision of compliance with advertising legislation for 2019.
Financial Ads Violations in Russia Increased Significantly
Russian people filed 4,068 cases for violations of the Advertising Act and FAS nullified 7,056 violations. Also in 2019, 4315 cases of administrative offenses were filed, according to the results of which fines were imposed on 114,676,100 rubles. FAS said:
Depending on the violation and its negative impact on competition, the authorities apply administrative penalties and administrative influence on violators.
Last year, Russian anti-monopoly authorities verified 18,179 reports of advertisements that did not comply with advertising laws. As a result, 4,068 actions were taken. Misleading ads represented 14.45% of all offenses, slightly more than the 11.56% recorded in 2018.
The number of violations in the advertising of alcohol products almost doubled compared to the previous year – up to 9.12%. But the violations decreased to 4.42% in the advertising of medicines, services, and dietary supplements.
The number of unethical advertising slightly increased in 2019 – 2.42 (in 2018 – 1.35%). But there is a decrease in unethical advertising in 2019 – 1.96% of all violations (in 2018 – 3.27%).
“In 2019, the Russian FAS and its territorial departments examined almost three thousand more complaints about the non-compliance of the advertisement with the requirements of the law. It opened and stopped more cases and violations than a year earlier.
The amount of inappropriate advertising for financial services is increasing. But, financial institutions often provide incomplete information about the conditions for the provision of such services, which misleads consumers,” said Andrei Kashevarov, deputy head of the FAS Russia.
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