Instructions on Advertising Controls for Products, Services, and Prizes Offered by Financial and Banking Service Providers

CENTRAL BANK OF JORDAN
Central Bank of Jordan

Reference No: 1206/3/27
Date: 25 Rajab 1446 AH
Corresponding to: 25 January 2025 AD

Instructions on Advertising Controls for Products, Services, and Prizes Offered by Financial and Banking Service Providers No. (1 / 2025) Issued pursuant to Articles (4/b) and (65/b) of the Central Bank of Jordan Law No. (23) of 1971 and its amendments

These instructions aim to enhance principles of financial consumer protection, specifically the principles of disclosure and transparency and the principle of appropriate design and presentation of financial and banking services, thereby contributing to increased customer trust in the service provider and consequently increasing financial inclusion in the Kingdom.

Article (1): Scope of Application
The provisions of these instructions shall apply to all operating banks, licensed financing companies, electronic money payment and transfer service companies, exchange companies, and insurance companies, thirty (30) days after their issuance.

Article (2): Definitions
The words and phrases appearing in these instructions shall have the meanings specified below unless the context indicates otherwise:

• Service Provider: Operating banks, licensed financing companies, electronic money payment and transfer service companies, exchange companies, and insurance companies, including all their branches, offices, and agencies within the Kingdom.
• Product/Service: Any offer or program provided by a service provider that possesses specific characteristics and conditions.
• Prize: Any asset, whether cash or in kind, offered or promised without consideration in the promotion of any product or service under specific conditions.
• Customer: The natural or legal person who has obtained or used any of the services and/or products and/or prizes offered by the service provider or will obtain them.
• Advertisement: Includes direct and indirect advertising, whether written, audio, visual, or electronic.
• Direct Advertising: The offer based on direct interaction between the service provider and the customer, including face-to-face interviews, via telephone, or through any form of direct conversation.
• Indirect Advertising: The offer published in print or electronically, or via visual and/or audio advertising media, or via Short Message Service (SMS), or on the service provider's website, or on the service provider's officially verified social media accounts.
• Written Advertising: Advertising published through newspapers or magazines, or through an advertising brochure, flyer, billboard, or web banner.
• Audio Advertising: Advertising published through radio stations, via telephone, or any other similar method.
• Visual Advertising: Advertising published through television stations, websites, social media platforms, electronic boards, or ATMs of the service provider, or any other similar method.
• Electronic Advertising: Advertising published through websites, social media platforms, or through the service provider's dedicated mobile application.
• Website: The website belonging to the service provider or any other website through which the service provider advertises.

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Article (3): Conditions and Terms of Advertising for Product/Service/Prize

a. The advertisement for the product, service, or prize must include, as a minimum, the following data and information:

1. The name.
2. A statement that it is subject to commissions or fees, if any, and clarifying the details within the terms and conditions, in accordance with the provisions of applicable related legislation as appropriate.
3. Characteristics, features, and the effective date (if any).
4. Methods for inquiring about information and additional details.
5. Identification of the target category for the product/service/prize if a specific category is targeted (such as students, women, doctors, etc.).

b. The phrases used in the advertisement may be concise, provided that the service provider provides all details, terms, and conditions in its branches, on its website, and/or its electronic application (if any) via a direct electronic link.

c. The advertisement must not contain any insult, distortion, or ambiguity regarding any competing service providers, whether explicitly or implicitly.

d. The information in written advertisements must be written in Arabic at a minimum, in simple and understandable language, with readable and appropriate font size, including margins, and without using incomprehensible abbreviations.

e. There must be a clear contrast in the advertisement between the color used for writing the information and the colors used in the background, to facilitate distinguishing and reading the information.

f. The information in audio advertisements must be stated clearly and understandably, ensuring that the listener can easily understand the information.

g. The advertisement must not contain anything that violates laws, regulations, public order, or public morals.

h. The speed of moving text in visual advertisements (if animated) must be appropriate, as well as the font size and sentence length, to facilitate reading/hearing/comprehension by the customer, and ensuring that no advertisement information is scrolled too quickly to hinder understanding.

i. When using the phrase "subject to the service provider's terms and conditions" in electronic advertisements, the phrase must link directly to the webpage of the product or service on the service provider's website, so that all advertised information is comprehensive, clear, and in accordance with applicable legislation.

j. In addition to what is stated in Article (3/a) of these instructions, the terms and conditions and all details regarding prizes must be accurate, clear, and expressive of the prize's true nature without exaggeration or overstatement. The advertisement must include, as a minimum, the following data and information:

1. Cash prize amounts in detail and the frequency of their drawing.
2. The end date of the campaign.
3. Clarification regarding whether the prizes are subject to income tax, customs duties, or any other deductions, if applicable.

Article (4): Prohibited Practices

a. The service provider is prohibited from using promises or phrases that are incomprehensible, exaggerated, or contrary to applicable legislation. Examples include:

1. Using the Central Bank's logo.
2. The phrase "no commissions" or similar, if there are direct or indirect commissions.
3. Stating that the interest/return calculated on the loan/financing is zero percent (0%) or "without interest" or "free," while interest/return is actually calculated on the loan/financing.
4. Phrases such as "guaranteed loan" or "without prior approval" or similar.
5. Phrases such as "many other prizes," "valuable prizes," or "luxurious in-kind prizes" or similar, without specifying the nature of the prizes within the terms and conditions.
6. Phrases such as "highest financing ratio," "best," "lowest cost," "largest number," or "most valuable" or similar, without the service provider verifying the truth of these statements and documenting evidence confirming them before advertising them.

b. The service provider is prohibited from advertising or promoting any product, service, or prizes partially for the purpose of attracting customers, or advertising in a way that shows only the positive aspects of the product or service, delaying the disclosure of the full characteristics of the product, service, or prize until the sales stage or post-sales.

c. The service provider is prohibited from advertising or promoting the use of trademarks that are not properly registered with the competent authorities and for which it does not own the right of use.

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Article (5): Removal of Expired Advertisements Advertisements for expired products/services/prizes must be removed from all advertising media. These advertisements may be kept only on the service provider's accounts/pages on social media platforms, provided that the advertisement clearly and directly indicates that the associated campaign has ended.

Article (6): Customer Notification

a. If the service provider sends marketing Short Message Service (SMS) messages, they must be sent between 8:00 AM and 5:00 PM, adhering to the provisions of the Personal Data Law and applicable legislation regarding this matter.

b. The service provider may advertise the names and/or photos of winners of any prizes in the manner it deems appropriate, provided that prior consent is obtained from them.

Article (7): General Provisions
The service provider must comply with the following:

a. Establish an advertising policy that includes, as a minimum, what is stated in these instructions, and have it approved by the Board of Directors or the Board of Trustees. The implementation of the approved policy must be verified by the service provider, updated periodically and as needed, and a copy of that policy and any amendments thereto upon approval must be provided to the Central Bank.

b. If advertising more than one service and/or product and/or prize in the same advertisement, separation between them must be observed, and the terms, conditions, and features of each must be specified individually.

c. If a promotional campaign is modified or canceled before its scheduled end date, the service provider must announce this through the same media used to promote the campaign, immediately and/or remove those advertisements wherever they are found.

d. Clarify the type of interest/return in credit product advertisements, ensuring it matches what is listed in the systems, contracts, mortgage deeds, and virtual calculators.

e. Clarify in cashback product advertisements the minimum and maximum cashback percentages, and the maximum limit in Jordanian Dinars, if any.

f. Add the phrase "Terms and Conditions Apply" in the body of all advertisements for the product and/or service and/or prize.

g. Update websites, social media, and the electronic application immediately upon any change to the published information.

h. Regarding advertisements for prizes associated with any customer accounts, banks must comply with the provisions of the circulars in force regarding this matter.

i. Clarify the existence of effects/costs incurred when benefiting from grace periods in credit products within their specific terms and conditions.

Article (8): Penalties and Fines

a. If the service provider violates any of the provisions of these instructions, the Central Bank may take any of the penalties or measures stipulated in the legislation regulating the activities of financial and banking service providers, as appropriate.

b. The Central Bank has the right to request the service provider to stop any advertisement for a product, service, or prize if it violates the requirements of these instructions or any requirements/legislation issued by the Central Bank.

Article (9):

a. The provisions of circulars that conflict with the provisions of these instructions are repealed, including the following circulars, effective from the entry into force of these instructions:

• Circular No. (9187/7/2/9) dated 2011/8/2.
• Circular No. (2556/3/27) dated 2023/2/2.
• Circular No. (4894/1/9) dated 2024/3/17.

b. The provisions of Circular No. (6359/2/26) dated 2023/3/29 shall remain in force.

Governor
D. Adel Al-Sharqas