Misleading ads
Although advertising is a separate industry today, the nature of their ads on behalf of their clients, is mostly misleading the consumers and prospective customers /investors of banks and the non-banking finance companies.
We see some advertisements representing some products have used celebrities whose endorsements have generated a false confidence among the consumers. For example leading cricketers are being used to advertise certain items that they have most probably, never ever touched.
Similarly advertisements pertaining to financial products by banks and finance companies are seen more competitive to attract the customers by offering overseas trips and various gifts like land, houses and consumer electronic items and so on. This too is an inducement without revealing the true position about financial risks, strengths and weaknesses of such products.
Some advertisements contain matters likely to deceive, mislead or confuse the consumers/customers.
In the absence of a legal framework against liability for false, misleading and untrue statements in an advertisement this trend will continue.
Since at the moment there is no identified regulator to monitor and supervise this aspect, the government must at least authorise the government’s Consumer Affairs Authority or the Fair Trading Commission to establish a system and a code of ethics to curb attempts to cheat consumers and customers.
They must insist that the credit ratings should compulsorily be published in all advertisements media.
In New Zealand, a bill is under preparation specifying that anyone who makes misleading statements in a product disclosure statement or in an advertisement is liable for civil penalty upto $1 million for an individual and $5 million for a company plus compensation order. This will include any celebrity who makes a misleading statement.
However, in our country people are bound to be misled by seeing trusted faces endorsing products even if they do not use misleading words.
Since the average consumer is not educated enough to grasp the value of such products and the risks involved, they are being taken for a ride by these commercial companies, banks and finance companies.
Mahinda Wimalasena
Kiribathgoda.