On 26 December 2024, the Federal Law No. 479-FZ “On Amendments to the Federal Law ‘On Advertising’ and Certain Legislative Acts of the Russian Federation” (hereinafter referred to as the “Law”) was published. This Law in particular, is aimed at regulating issues of advertising of credits (loans).
Current requirements
As of now, the advertisement of credits (loans) must indicate all conditions that determine their value for the borrower. In consumer loans, when indicating the interest rate, it is necessary to show both minimum and maximum interest rate1.
In practice, credit organizations often place all the necessary conditions in advertising in small and unreadable print, which does not allow consumers to recognize such information, and misleads him, which may result in fines for the advertiser2.
Changes
If advertising of a consumer credit (loan) will contain at least one condition affecting its full value, the advertiser will be able to indicate a warning: “Study all the conditions of the credit (loan)” with an indication of the section of the creditor's information source. On such source, the consumer will be able to study the information he needs about the credit (loan). At the same time, the option with the indication of all conditions in the advertisement itself will comply with the law in case of impossibility to indicate the section of the official site.
In addition, consumer credit (loan) advertising must contain the warning “Assess your financial opportunities and risks”.
Requirements for the size and duration of each of the warnings:
-
in radio advertisements, the duration of each warning must be at least 3 seconds;
-
in advertisements distributed in TV programs and in film and video services - not less than 3 seconds and must be allocated at least 5% of the frame area;
-
in advertisements distributed in other ways - not less than 5% of the advertising space.
These requirements will also apply to advertising mortgage loans.
The changes will come into force on 1 March 2025. They are aimed at reducing reckless loans and helping borrowers to think about their financial options.
1Paragraph 2 of Part 2 and Part 3 of Article 28 of the Federal Law of 13 March 2006 No. 38-FZ “On Advertising”.
2Resolution of the Arbitration Court of the North-Western District dated 13 December 2023 No. F07-18003/2023 in case No. A56-113851/2022, Resolution of the Ulyanovsk UFAS of Russia dated 4 February 2020 No. 4 in case No. 073/04/14.3-16162/2019.