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ISCOVER
Staff Reporter
RAMS Financial Group has been forced to change its advertising campaign after ASIC raised concerns about its content.
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According to a statement from ASIC, the advertisements were “misleading” as they featured a prominent headline offering a 5.75 per cent interest rate, followed by a small statement that said ‘monthly deposit conditions apply’.
In addition, the advertisement mentioned the rate came with a 0.8 per cent p.a. bonus.
ASIC was concerned that the ads left out important information and failed to give enough prominence to the conditions associated with the 0.8 per cent bonus.
Of particular concern to ASIC was that the ads did not disclose that in order to achieve the monthly bonus rate, consumers could not make any withdrawals from the account during the month.
In response to ASIC's concerns RAMS amended its advertisement and is also taking steps to clarify its product information with customers.
“Advertisements should give balanced information to ensure the overall effect creates realistic expectations about a financial product or service,” ASIC Commissioner Peter Kell said.
“ASIC’s guidance will help industry participants understand their obligations but we are also sending a message that we will take action in response to misleading ads for financial products and services.”
