Recommendation 2016-R-03 of November 14, 2016, on advertising communications for savings accounts — ACPR — FR

Recommendation on advertising communications for savings accounts 2016-R-03 of November 14, 2016

Context
Advertising communications constitute the first step in the relationship between a credit institution and its customers and can have a decisive influence on the decision to make an investment. This applies to all types of investment, including the opening of a savings account1.

Savings accounts are generally perceived by the public as simple and risk-free products, in a context marked by the multiplicity of investment offers and the complexity of some of them. Thus, customers may be encouraged, through advertising communications, to subscribe to savings accounts or to make new deposits into their accounts based solely on the characteristics highlighted by the advertising message. Consequently, advertisements concerning savings accounts must present a balanced character and must not highlight only the advantageous characteristics, to the detriment of the conditions or characteristics that restrict the benefit of the offers.

In the framework of its mission to supervise and control advertising communications, the ACPR has been led to observe practices that could harm the understanding of the offers and the conditions to which they are subject. These result from a lack of clarity or the omission of certain elements, all the more so when several offers are promoted within the same communication.

In order to complement the best practices already stated in other areas of the financial sector and to make known its expectations regarding advertising communications concerning savings accounts2 to all professionals, the ACPR recommends by this document best practices regarding the presentation methods of the advertisement and the presentation of the offer, and in particular regarding the balanced nature of the advantages and the conditions to benefit from them.

1 The savings account outside regulated savings is a savings product whose interest rate is not regulated and which is not subject to a deposit cap (fixed by regulation). The funds deposited in this account are available at any time. The duration of the account is unlimited; it can be closed at any time by the subscriber. The interest credited to this account is subject to tax and social levies (cf. glossary "Savings and Financial Investments published by the CCSF in June 2010). 2 Outside regulated savings cf. point 3.

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The principles set by regulation and professional recommendations
For savings accounts, these principles are mainly derived from the decision of the National Credit Council No. 74-07 and Regulation No. 86-13 of May 14, 1986, relating to the remuneration of funds received by credit institutions.

In terms of advertising, the principles of clarity, accuracy, and fairness constitute the major principles resulting from the provisions of Book I of the Consumer Code. They imply in particular:

a clear identification of the advertising nature of the communication and the nature of the product, including in the choice of the commercial denomination;
the presence of the essential characteristics of the offer or product and all relevant elements likely to influence the benefit of the offer;
the clarity and intelligibility of the information3 relating to the offer and its conditions as well as their presentation;
the legibility and audibility of all information under normal reading and listening conditions.

All these conditions aim not to mislead the consumer regarding the characteristics of the offer or the product.

Attached to the respect of the interest of savers and the healthy development of financial savings, the Financial Sector Consultative Committee (CCSF) adopted, on June 3, 2008, a recommendation relating to the advertising of financial products. As part of an advertising self-discipline approach, the Professional Advertising Regulatory Authority (ARPP) equipped itself in January 2014 with a recommendation on the theme of advertising for financial and investment products and related services.

The General Directorate for Competition, Consumer Affairs and Fraud Control (DGCCRF) made public in July 2011 guidelines on mentions in radio advertising aimed at ensuring loyal information for the consumer. These guidelines, of general scope, do not target only radio advertising on financial products or services.

3 Including information, mentions, and advertising allegations.

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Scope and field of application
This recommendation concerns advertising communications concerning savings accounts, outside regulated savings, disseminated by intermediaries in banking operations and payment services and credit institutions, including when these establishments operate in France under the freedom to provide services or freedom of establishment.

This recommendation does not develop the best practices essential for the proper information of the client regarding changes in the base contractual rate, at the pre-contractual stage4 or during the life of the contract5. These best practices assume in particular that the pages of the website dedicated to the product allow direct access, via a clear and apparent mention, to the applicable general terms and conditions.

All the best practices stated in this recommendation are to be taken into account mutatis mutandis, regardless of the medium and format of dissemination of the advertising communications concerned.

4 Information delivered to the client on the modalities of variation of the remuneration rate and communication of rate changes applied in the general and particular terms. 5 Information on changes made to the rate applied to the client (Letter, email, information via the client space...).

6 The notion of "offer" refers to an offer or a plurality of offers.

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Recommendation
With the objective of protecting clients during the marketing of savings accounts, the ACPR recommends to the persons concerned, in accordance with the provisions of Articles L. 612-1, II 3° and L. 612-29-1, second paragraph of the Monetary and Financial Code, the following best practices:

4.1 On the presentation modalities of the offer6
4.1.1 To clearly present the characteristics of the product concerned by the offer and in particular:
4.1.1.1 When the communication draws a parallel with another savings product or financial service, to indicate the significant characteristics that differentiate the products.
4.1.1.2 When the communication presents, as advantages related to the product, characteristics imposed by applicable legal provisions, to specify this in the communication.
4.1.2 To clearly present the characteristics of the offer, and in particular:
4.1.2.1 To ensure that the validity deadline of the promotional rate cannot be confused with the deadline for opening the savings account7.

7 The promoted rate risks being identified as the base contractual rate applicable to all future deposits.

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4.1.2.2 When the promoted offer applies to customers and potential customers according to different modalities or conditions, to present them separately.
4.1.2.3 In the case of a plurality of offers, to use a presentation and discourse allowing to determine unambiguously whether each offer is accessible separately under the same conditions or with the same advantages.
4.1.3 To use an airy presentation8 of reference mentions9 allowing to directly identify which characteristic or offer they relate to.

8 As an example, the objective of airy presentation can notably be achieved by prioritizing line breaks between different mentions or information so as to avoid the accumulation of overlapping mentions that harm the clarity and intelligibility of the offer's conditions. 9 Notably mentions linked by a sign.

4.2 On the balance of the offer
4.2.1 To ensure the balanced presentation of advantages and characteristics influencing the remuneration of the savings account or conditioning the benefit of the offer; the appreciation of the balanced character relies on a set of elements including the placement of information in the communication, the size of characters, typography, and color used.

The apparent character aims to ensure that the advantages and characteristics influencing the remuneration or benefit of the offer stand out from other information and that the public does not have to search for them in the advertisement.

4.2.2 When the communication mentions a remuneration rate10:
4.2.2.1 To mention the annual and gross nature immediately next to the remuneration rate and to clearly specify in the advertising communication that the generated interest is subject to fiscal and social levies.
4.2.2.2 If fees are attached to the management of the savings account, to express the remuneration rate net of management fees and to present it as such in the communication.
4.2.2.3 If the promoted offer implies, upon deposits, the deduction of fees by the establishment or one of its partners, to mention this clearly.

10 The principles mentioned in points 4.2.2 to 4.2.2.3 concern all rates mentioned in the advertising communication.

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4.2.3 When the only rate announced is the base contractual rate11, in addition:
4.2.3.1 To indicate immediately next to the rate the conditions that significantly limit its benefit: if applicable, in particular, the conditions attached to the deposit(s) of funds (minimum or maximum deposit amount).

11 The base contractual rate corresponds to the remuneration rate to which the client benefits outside any promotional period or condition. This rate is contractually defined.

4.2.3.2 To clearly present in the main body of the advertising text the information that this is the currently in-force rate, specifying its variable nature and, if applicable, the future rate already decided.
4.2.3.3 To clearly present other conditions or modalities influencing the benefit of the offer.
4.2.4 When the announced remuneration rate is not the base contractual rate12, in addition:
4.2.4.1 To mention immediately next to this rate the conditions that significantly limit its benefit, if applicable in particular:

the duration during which it applies;
the subscription of one or more other products;
the conditions attached to the deposit(s) of funds (initial, minimum, or maximum deposit amount, number or period of deposit13);
the obligation to maintain a minimum balance amount or to make minimum deposits during a imposed period;
the delays and amounts from which or up to which a rate increase applies or the portion of balances benefiting from it.

12 Promotional rates, rates including a remuneration bonus, progressive rates applicable to certain deposit brackets, etc., are notably covered. 13 Notably when the period does not correspond to that of the promotional rate offer or, for already opened accounts, if the rate offer applies only to "new" deposits made during the period.

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4.2.4.2 To clearly present in the main body of the advertising text:

the eligibility conditions for the rate offer: if applicable in particular the validity duration of the offer, the condition related to a first or new opening of the savings account concerned by the offer within the establishment, a limited number of subscriptions, a specific clientele, the holding of a minimum number of social shares, the holding of another product or the deposit into another product;
the base contractual rate in force and immediately next to it the information that this is the currently in-force rate, specifying its variable nature and, if applicable, the future rate already decided.
4.2.4.3 To clearly present other conditions or modalities influencing the benefit of the offer, if applicable in particular:
the start date of the application duration of the promotional rate;
the minimum duration during which the product(s) must remain open, specifying the consequences in case of non-compliance;
the exclusion of sums coming from other accounts or savings accounts held within the establishment;
the deadline for activating payment means subscribed14.

14 When one of the bonuses concerns the opening of a bank account with payment means.

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4.2.5 In any communication presenting one or more offer(s) of financial or in-kind bonus(es), to apply mutatis mutandis the principles stated in point 4.2.4, namely:
4.2.5.1 To mention immediately next to the amount of the bonus, or each bonus if applicable, the conditions that significantly limit its benefit.
4.2.5.2 To clearly present in the main body of the advertising text:

the eligibility conditions for the offer;
the applicable remuneration rate as well as the related mentions according to the nature of the rate15.
4.2.5.3 To clearly present other conditions or modalities influencing the benefit of the offer.

15 Cf. points 4.2.2 to 4.2.4.

4.2.6 To provide a support and dissemination format adapted to the advertising message allowing the public to have a balanced and intelligible presentation of the offer.
4.2.6.1 For advertisements disseminated in the form of banners, digital advertising windows, and commercial links presenting objective space or time limits, the objective stated in points 4.2.4.3 and 4.2.5.3 can be achieved:

by making the mentions appear immediately on hovering over the advertisement; or
by making them directly accessible by a reference to another digital support and in this case, by clearly indicating that the offer is subject to other conditions, consultable by clicking on a mention such as "Other conditions" or "Offer details", provided that upon reading the banner and the immediate reference, the principles of balance and clarity stated in this recommendation are preserved.
4.2.6.2 For advertisements disseminated in the form of radio messages presenting objective time limits, the objective stated in points 4.2.4.3 and 4.2.5.3 can also be achieved by making them directly accessible by a reference to a digital support or any other durable support easily accessible and provided upon simple request. In this case, it will be indicated audibly that the offer is subject to other conditions, consultable on the internet, communicated at the point of sale or upon simple request, provided that upon listening to the advertisement, the principles of balance and clarity stated in this recommendation are preserved.

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4.3 On communications concerning savings accounts that promote actions in favor of the local economy or sustainable development
4.3.1 To ensure that commercial denominations, allegations, and presentations are proportional to the reality of the establishment's actions and that these actions are themselves significant and based on objective and verifiable elements.
4.3.2 To clearly specify the main elements or characteristics of the product that justify the commercial denominations, allegations, and presentations used.

4.4 On communications presenting a trophy or equivalent
4.4.1 To refer to any communication medium allowing to identify the source at the origin of the distinction, its vintage, and to specify, concisely, the granting modalities16.

16 As examples: jury of professionals, consumer panel...

4.5 On the means and procedures put in place
4.5.1 To implement the necessary means and procedures to ensure compliance with the modalities covered by this recommendation.

This recommendation will be effective 6 months after its publication.