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OJK cracks down on dishonest banking, financial product ads
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The logo of the Financial Services Authority (OJK) is seen at its headquarters in Jakarta. (Tempo/Tony Hartawan)
T
he Financial Services Authority (OJK) is imposing stricter advertisement guidelines for banks and financial service companies to improve market conduct and strengthen customer protection.
The new guidelines cover a set of words and phrases that are both allowed and prohibited in advertisements for banking, insurance, multifinancing as well as leasing products and services.
One example of the prohibition is using superlatives, such as “the best” or “the biggest”, in their advertisements without any credible evidence that can back their claims.
Should banks and companies need to use those words or phrases, they should also include credible evidence, such as awards or independent research, in their ads that could support those claims, said Tirta Segara, the OJK’s commissioner of consumer protection and education.
He added that other than the use of superlatives, the new guidelines would also ensure that players created accurate and clear advertisements that were not misleading.
This means that banks and companies must also provide adequate information about their products, such as detailed terms and conditions, including any promises of prizes and rewards offered.
They should also eliminate vague impressions that are often found in advertisements, such as “this product has the most gains and the smallest risks”.
