Council of States Committee: Against ban on advertising for small loans
The Economic Committees (WAK) of both chambers agree: Young people should be protected as much as possible from falling into the debt trap. There is debate, however, over whether advertising for small loans should be banned as a result.
The National Council had spoken out in favor of a ban. Now the Economic Affairs Committee of the Council of States is opposing it. By 5 votes to 2 with 2 abstentions, it recommends to the Council that a parliamentary initiative by Josiane Aubert (SP/VD) should not be followed. According to SDA, the committee argues that a total ban on advertising would be too great an encroachment on economic freedom.
Both committees approved a more moderate demand: small lenders should have to spend part of their turnover on prevention. The Council of States committee approved a parliamentary initiative by Hugues Hiltpold (FDP/GE) by 4 votes to 3 with 2 abstentions, as reported by the parliamentary services on Tuesday according to SDA. This allows the National Council committee to prepare a draft bill.
The majority in the National Council was of the opinion that a ban on advertising would help to tackle the root of the problem. It would be hypocritical to strengthen prevention while continuing to allow advertising for small loans, said initiator Josiane Aubert. Advertising makes young people believe that they can consume without restriction.
