There are many industries whose advertising and promotion is regulated and sometimes even restricted. This means that you are less likely to see associated products and services advertised on TV, radio, billboards and otherwise. Such industries, who are restricted with regards to what they can promote ‘offline’ traditionally include:
- Loans and Short Term Finance
- Gambling and Casinos
- Smoking
- Mortgages and Equity Release
- Credit Cards
Although loans and short term finance as well as gambling and casino products are advertised, they are heavily regulated and strictly monitored by the Financial Conduct Authority (FCA), the UK Gambling Commission and the Advertising Standards Authority (ASA).
Smoking has been banned from advertising in the UK for many years. Additionally, taxes and levies on the smoking industry are being increased each year by the government in a bid to reduce the number of people taking up and continuing smoking. This is in order to improve public health and reduce the burden on the UK’s National Health Service (NHS.)
For loans and short term finance, conditions are strict in order to ensure that the messaging of each brand or company is clear, honest and doesn’t lead customers into financial hardship. In past times and prior to the FCA introducing sweeping legislation and regulations to the short term lending market, many people who took out short term loans such as payday loans found themselves with unpayable levels of debt.
Hence, those offering and advertising payday loans or other forms of these types of finance are required to refer customers to the Money Advice Service and also to provide representative examples for total clarity. Very similar rules and regulations apply to credit cards.
Betting, Gambling and Casinos
Whilst betting companies and providers are indeed allowed to advertise and promote their offerings, there are strict limits and regulations in place to ensure everything remains in the interest of prospective players and customers. For example, a casino provider offering a ‘No Deposit Bonus‘ has to be clear about the terms and conditions as well as the limitations of their offer. This is so that prospective players understand when and how they are able to take advantage of such offers.
Any advert or promotion which is seen as misleading could land the company being promoted in hot water with financial penalties, strict impositions and even court action possible.
Mortgages and Equity Release
Both mortgages and equity release are well-known and well understood by most people. Hence, they are allowed to be promoted anywhere and online there is additional freedom. However, customers and applicants need to be made aware of any credit checks that lenders or brokers may carry out and lenders (assuming they are ‘status’ lenders) must be regulated and authorised by the FCA. Companies must also provide representative examples where relevant and remind customers and applicants that failure to keep up with the required repayments may lead to repossession of their property.
