Competition Committee fines more than 20 banks and MFIs over advertising violations

According to the committee, the majority of advertisements that fail to comply with legal requirements are published by financial institutions across social media, online platforms and traditional media. Many of these advertisements contain inaccurate or misleading information.

The regulator said advertisements for deposits and loans often fail to provide sufficient details about interest rates, minimum eligibility requirements and the validity period of promotional offers.

Similarly, advertisements for microloans frequently omit information about intermediary fees, insurance charges and other mandatory payments. In some cases, advertisers include key product details in an excessively brief, vague or difficult-to-read format.

The committee also identified the use of ambiguous wording, exaggerated claims and keywords associated with the trademarks or names of other organizations. It said such practices violate consumers' right to receive complete and accurate information about financial products.

The agency reminded financial institutions that Article 43 of the Law on Advertising requires providers to disclose the essential terms of contracts for financial services. The law also prohibits businesses from exploiting consumers' trust or taking advantage of their lack of experience or knowledge.

The Competition Committee said it has recently applied financial sanctions against more than 20 commercial banks and microfinance organizations for publishing advertisements that breached these requirements.

The regulator called on financial institutions to ensure that advertisements contain complete and accurate information presented in a clear and accessible format. It also warned against the use of hidden text, excessively small fonts or text colors that blend into the background, making important information difficult to read.