Small loans: industry defines "aggressive advertising" itself
Aggressive advertising for small loans is to be discontinued. However, the Federal Council intends to leave it up to the lending industry itself to decide what constitutes aggressive advertising. The Council is thus endorsing the proposal made by a National Council commission.
The government should only put its foot down if self-regulation is not effective. The National Council and Council of States had agreed in principle on a ban on advertising small loans and approved a parliamentary initiative. This was reported by the SDA in a press release on Thursday. The Economic Committee of the National Council then had to draw up a draft law, which the national government agreed to on Wednesday. The proposed restriction of advertising in the revision of the Consumer Credit Act is supported, according to a statement from the Federal Council: aggressive advertising encourages ill-considered credit decisions and increases the risk of over-indebtedness. In addition, advertising aimed specifically at young people should be classified as aggressive and therefore banned.
(Teaser image: Fricktal24.ch)
