Sverdlovsk Region’s division of the Federal Antimonopoly Service found OAO Bank24.ru guilty of an administrative offense as described in Article 5 (part 7) of the Advertising Act, the spokesperson for the division says. The offense consisted in using inadequate ads next to the entrance to one of the bank’s offices in July-September 2009. The advertisements read, ‘A free settlement account for legal entities and sole traders,’ and ‘Open a settlement account for free.’

Sverdlovsk Region’s division of the Federal Antimonopoly Service declared the advertisement was inappropriate because it failed to give some essential information on the conditions under which a settlement account would be opened free of charge. Namely, the customers had to download all the forms from the bank’s website and fill them in themselves; also, they needed to get a public notary to confirm the samples of their signatures and seal impressions. What is more, the ad did not inform the customers that there was a fee for the administration and closing of the account.

According to Article 5 (part 7) of the Federal Advertising Act, it is illegal to use advertisements that fail to provide all the essential information about the product or about the terms of purchase or usage; it is also illegitimate to use ads that misinform and delude the customers.

Sverdlovsk Region’s division of the FAS made Bank24.ru face administrative liability and pay a 50,000-ruble fine.