What will change
According to the draft amendments to the Law “On Advertising”, at least 10% of advertising time or space must be allocated to warnings about potential financial consequences.
Why is this necessary
The goal of the initiative is to increase the level of financial literacy of the population and to form a responsible attitude towards borrowing. The committee urges citizens to carefully assess their financial capabilities, loan terms, and obligations before signing the agreement.
Context
Microloans and consumer loans are often promoted as a “quick solution”, but can lead to debt burden. The new approach is aimed at preventing such risks.
What’s next
Amendments must be approved in the prescribed manner. If accepted, all market participants will be required to comply with the new requirements for advertising placement.
