Advertising of Goods and Services Paid in Instalments Is Prohibited

In the opinion of the Consumer Protection Board, the restrictions for the advertising of financial services set out in the Advertising Act prohibit also the so-called complex advertising that promote goods and services with the option of payment in instalments.

It is very common that various household appliances, electronics as well as cars are advertised in outdoor media and press, referring to the possibilities of leasing or payment in instalments, and very often the advertisements also feature the sum of monthly payment. According to the Advertising Act, such advertising is considered as consumer credit advertising subject to restrictions arising from Section 29(3) of the Advertising Act.

Pursuant to the Consumer Protection Board’s practice, these restrictions prohibit, among other things, describing of the characteristics of the advertised goods or services in the advertisement, additionally, it is practically forbidden to exhibit trademarks. Such interpretation of the Advertising Act makes illegal all advertisements of specific goods or services which include information on the possibilities for payment in instalments or leasing.

Such interpretation has been surprising for many businesses due to the fact that in their opinion, the confusing wording of the provisions of the Advertising Act does not reveal such restrictions. The advertising of financial services is restricted mainly in order to control the activities of consumer credits, not for prohibiting the advertising of goods and services purchased with payment in instalments or leasing.

However, this is the current situation and this is why businesses, with the initiative from advertising companies, have started to draw attention to the problem and started to look for solutions. The Chamber is involved in the process of developing solutions and we will keep our members informed of the developments in the future.