ASIC bucks RAMS for 'misleading' advertising

by Caroline Dann04 Jul 2012

RAMS is the latest casualty of ASIC’s hard-line stance on misleading advertising. 

The Westpac-owned brand was forced to change its high interest Saver account campaign after ASIC raised concerns over misleading information on the advertised 0.8% bonus rate.
 
According to ASIC, the campaign failed to adequately explain that the bonus was only available if no withdrawals were made for an entire month. The ad appeared on television, online and outdoor advertising.
 
In response, RAMS has amended the wording and highlighted the terms and conditions.
 
RAMS is the latest in a line of institutions scolded by ASIC for ‘misleading’ or inaccurate advertising statements.
 
Last month, Resi was forced to change its home loan advertising campaign after it was found to inadequately disclose its comparison rates.
 
The spate of reprimands followed the release of ASIC’s Regulatory Guide 234: Advertising financial products and advice services: Good practice guidance. 
 
ASIC Commissioner Peter Kell was adamant swift action would be taken against non-compliance.
 
“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,” he said.
 
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