29.1 Million Lira Fine for Deceptive Advertisements
The Ministry of Commerce has issued a statement regarding investigations conducted by the Advertising Board, focusing on deceptive advertising and unfair commercial practices that take advantage of consumers.
During the first meeting of the year on January 16, the Board reviewed advertisements that mislead and exploit consumers, resulting in fines of over 277 million lira last year for violations. Out of 209 files discussed at the meeting, 189 were found to be against legislation, leading to precautionary suspension decisions, advertising suspension penalties, administrative fines totaling 29 million 136 thousand 384 liras, and access ban measures on 10 files.
Financial market issues were also addressed at the meeting, particularly in the banking sector to prevent the exploitation of consumers’ environmental sensitivities. It was found that loan advertisements for “green housing loans” and “green vehicle loans” lacked clear information on promised advantages such as interest rate exemptions, creating a misleading impression of environmental impact. As a result, 10 banks were issued advertising suspension penalties and instructed to provide clearer information in their advertisements.
The Advertising Board emphasized the importance of transparency in loan advertisements, requiring all fees, commissions, and expenses to be disclosed, including the total cost of the loan and the annual cost rate. Failure to provide this information, as seen in a financing company’s vehicle campaign advertisement, led to the suspension of the ads due to hidden costs.
Overall, the Ministry of Commerce and the Advertising Board are committed to protecting consumers from deceptive advertising practices and ensuring fair competition in the financial sector. Consumers are encouraged to be vigilant and informed when choosing loan offers, and financial institutions are reminded to provide transparent and accurate information in their advertisements.
