False advertising costs finance broker $20k
The Australian Securities and Investments Commission (ASIC) has made finance broker Jeremy (WA) Pty Ltd pay a $20,400 fine for false advertising as the regulator continues its crackdown on misleading marketing.
The advertisements offered “guaranteed car finance” to consumers and were published on websites run by the company including guaranteedcarfinance.com.au and yesloans.com.au.
ASIC stated the marketing representations were false or misleading under the national consumer law.
It took issue with the company guaranteeing loans in all circumstances, as lenders cannot enter into credit contracts with consumers who are unable to make loan repayments.
ASIC issued two infringement notices to the company with a $10,200 penalty for each.
It added that the payment of an infringement notice was not an admission of a breach of the ASIC Act consumer protection provisions. The regulator can charge penalties where it has reasonable grounds to believe someone has flouted certain consumer protection laws.
“ASIC will continue to monitor both traditional and non-traditional media to ensure lenders and finance brokers are complying with the law in their marketing to consumers,” ASIC deputy chairman Peter Kell said.
“We will take action where we identify ads that may mislead consumers.”
AUTHOR
Malavika Santhebennur
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