At the Advertising Board (“Board”) meeting numbered 350 and dated 08.10.2024, one of the prominent topics discussed was unlawful advertisements and unfair commercial practices within the banking sector.
In this article, we present sample decisions by the Board regarding various applications sanctioned for containing “misleading commercial practices” within the framework of service banking.
- “QNB Finansbank” Decision No. 2024/6009 on “QNB Finansbank”
The Board examined QNB Finansbank A.Ş.'s advertisements published online under the headline "Exclusive for New Customers, 0% Interest Rate, 3-Month Term TRY 20,000 TL Cash Advance, 6-Month Term TRY 10,000 TL Consumer Loan, Total TRY 30,000 TL." In these advertisements, it was observed that consumers were directed to the bank's mobile application, where they were onboarded as customers through remote onboarding procedures. The Board noted that consumers were not provided with adequate information about the essential elements of the campaign conditions, which are critical to the main promise.
During the Board’s evaluation, it was found that these advertisements gave the impression that all new customers would be able to benefit from the credit services. However, certain customers could not access the advertised credit interest rate or amounts due to financial risk reports or account limits. Indeed, a significant gap was identified between the number of consumers who became bank customers through the campaign and those actually benefiting from it. The practice of onboarding customers and marketing credit card products to them was deemed misleading and a violation of fair competition principles.
Consequently, the Board ruled that QNB Finansbank A.Ş.'s advertisements and commercial practices were unlawful and imposed an administrative fine of TRY 550,059 TL, as well as a suspension of the commercial practices.
- “Türkiye İş Bankası” Decision No. 2024/6014 on “Türkiye İş Bankası”
Following The examinations indicated that, it was observed that Türkiye İş Bankası A.Ş.’s advertisement titled "Exclusive for New Customers, 0% Interest Rate, 3-Month Term 25,000 TL Cash Advance" directed consumers to the bank's mobile application. Customers were then onboarded through a "I want to become a customer" button within the app. However, it was determined that consumers were not adequately informed about the campaign conditions, and credit terms were not offered to all consumers.
The Board found that these advertisements created an impression that all new customers could benefit from this credit campaign. However, certain customers were not eligible due to financial risk scores or account limits, which prevented them from accessing the campaign benefits. The practice of converting consumers into bank customers and promoting credit
card products was evaluated as misleading and a violation of fair competition principles.
Based on these evaluations, the Board ruled to impose an administrative fine of TRY 550,059 TL on Türkiye İş Bankası A.Ş. and suspend the advertisements deemed unlawful.
- “Denizbank” Decision No. 2024/6015 on “Denizbank”
In the advertisements presented by Denizbank A.Ş.'s advertisement with the headline of, "Exclusive for New Customers, 0% Interest Rate, 3-Month Term 15,000 TL Cash Advance, 6-Month Term 10,000 TL Consumer Loan, Total 25,000 TL," it was observed that consumers were directed to the bank’s mobile application, “MobilDeniz,” where they were onboarded as bank customers. However, it was found that consumers were not sufficiently informed about the essential elements of the main promise and that the credit conditions were not available to all consumers.
These advertisements gave the impression that all new customers could benefit from the credit campaign without exceptions. However, certain customers were unable to benefit from the campaign due to insufficient financial risk scores or low account limits, which rendered the practice unlawful. The Board evaluated this situation, whereby customers were onboarded and offered credit card products, as a misleading commercial practice and a violation of fair competition principles.
The Board ruled that the advertisements and commercial practices of Denizbank A.Ş. were unlawful and imposed an administrative fine of TRY 550,059 TL, along with the suspension of the advertisements.
In light of the above decisions, the Board is observed to impose both suspension and administrative fines on advertisements it deemed misleading and contrary to fair competition principles, especially within the framework of “service banking.” Classifying such advertisements as “misleading commercial practices” stems from creating the impression that all consumers would be able to benefit from the credit, while some consumers are unable to do so due to account limits or financial risk scores. According to the Board’s approach to the advertisements in question, it is essential to provide information on the essential elements and exceptions to the main promise, either directly in the advertisement or through a QR code or link.
Additionally, the Board has notably increased its focus on misleading commercial practices within the context of service banking compared to previous meetings.