Advertisements ‘not complying’ with new regulations

Over 60% of advertisements in regional newspapers are failing to comply with new advertising regulations, the Office of Fair Trading has announced.

The OFT’S co-ordinated review, carried out by trading standards across the UK, also found that 68% of ads in popular car magazines also failed to comply with the Consumer Credit (Advertisements) regulations, which came into force last October.

The OFT found that most breaches concerned the way in which typical APRs were depicted in advertisements, including:

• no typical APR being shown, where this is required by law
• displaying more than one typical APR in an advertisement – as many as six were displayed in one advert
• the typical APR not being given the required prominence
• the typical APR not being shown together with information on payments and charges

Sir John Vickers, OFT Chairman, said that the findings were “most unsatisfactory” for consumers. He said: “Consumers must have clear information on the costs of loans. The OFT and trading standards are working with business to drive up compliance and will take enforcement action where necessary.”

The findings of the review were revealed as updated guidance explaining credit advertising rules was published.

The answers to ‘Frequently Asked Questions’, first published in October 2004, and updated in the light of market developments, provide detailed advice on how to comply with the credit advertising rules, while the accompanying booklet provides a simple summary of the regulations.

(KMcA/SP)