Italy Fines Trade Republic €2.5 Million for Misleading Ad Campaigns
Details of the Trade Republic Fine and Advertising Controversy
Background of the Fine
ROME, June 9 (Reuters) - Italy's competition authority said on Tuesday it had fined German online broker Trade Republic €2.5 million ($2.89 million) for allegedly misleading information in advertising for its payment card.
Promotion of the Saveback Programme
Advertising Claims
• The company promoted its payment card by offering purchasers access to a "Saveback Programme," the authority said.
• This programme was promoted through an advertising campaign carrying the slogan "1% makes the difference."
Consumer Perceptions and Misleading Information
• According to the authority, a lack of clear information about the program could have led consumers to believe that purchasing the card would give them access to a traditional cashback scheme.
• Consumers may therefore have been misled into thinking they would receive a partial refund on their account for certain card purchases.
Actual Terms of the Programme
Conditions for Receiving Benefits
• The authority said the promotion instead consisted of an offer to subscribe to a savings plan, under specific conditions.
• Only after joining the plan would Trade Republic contribute an amount equal to 1% of the value of certain purchases made with the payments card.
Company Response and Additional Information
• Reuters has requested a comment from Trade Republic.
($1 = 0.8654 euros)
(Reporting by Mirko Miorelli, editing by Gavin Jones)
