CBN Goes Tough On Banks, Gives Fresh Conditions For Advertising Products

The Central Bank of Nigeria has issued fresh advertisement and promotion conditions to Nigerian banks to improve overall compliance with the Consumer Protection Framework(CPF) by the banks and other financial and non-bank financial institutions.

The CBN made this known in the new Consumer Protection Regulations (CPR) it released, where it restated its commitment to enforce the protection of the Nigerian consumer through transparency from financial institutions.

The development follows The Whistler’s earlier report that the CBN had slashed bank charges on ATM transactions, electronic transfers and card maintenance.

CBN stated in the CPR that adverts have to be factual and unambiguous to ease consumer decision, adding that it must not mislead consumers and no exaggerated benefit of a product should be included.

According to the CPR: “Content of advertisements shall be factual and unambiguous, expressed in clear and simple language and shall not be offensive, misleading, deceptive, injurious, or exaggerate the benefits of the products or services being advertised.” 

The CPR warns the institutions against laying emphasis on benefits of products while de-emphasizing its associated risks.

It went on to direct the institutions to disclose their contact details in any advertisement or promotional material, with emphasis that the institutions should clearly disclose details of the cost of a product or services, including all fees and other associated charges.

It further warned against making references to unaudited financial statements, adding that the institutions should fully disclose the nature and value of benefits where an advert has other value adding benefits.

On the issue of competitors, institutions have been prohibited from mentioning names of competitors or make comparisons in their advertisements.

Unsolicited advertisements through emails, text messages, voice calls and other channels sent by or on behalf of an Institution shall be at no cost to the consumer and shall contain an opt-out provision for future advertisements.

Institutions are also mandated to notify the Director, Consumer Protection Department of the CBN prior to the commencement of advertisement of product or service by submitting a description of the content of the advertisement.