There are 460 Stupid Financial Service Ads that Fool Customers, Here are the Modus Operandi

Dream - Member of the Board of Commissioners of the Financial Services Authority (OJK) for Education and Consumer Protection, Friderica Widyasari Dewi, said that they have received many complaints from the public about advertisements in the financial services sector that often deceive the public to make their products sell.

"We are definitely upset when we see entities that do everything to get customers, do everything to get consumers, because it will damage the industry. We will monitor this," said Friderica, as quoted from Liputan6.com, Tuesday, March 14, 2023.

Therefore, she emphasized that OJK is committed to monitoring market conduct to strengthen consumer and public protection through Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK).

"The object of this market conduct is complete. Starting from the product lifecycle, from how the product is designed to the format of its sales, how the sales are conducted, what kind of service is provided, we will monitor all of that. It is all covered by the law (P2SK)," she explained.

Most Common Violations

Based on the Financial Services Authority's (OJK) monitoring of 21,373 advertisements in 2022 through the Financial Services Advertisement Monitoring System (SPIKE), there were 460 advertisements that violated consumer and public protection regulations.

The most common violations found in advertising monitoring include advertisements that do not include the phrase Terms and Conditions Apply, advertisements that include the phrase Limited Quota, Limited Gift Stock, or other similar phrases without information on the quota/gift provided.

Also, not including information that can cancel benefit promises. For example, program periods and minimum purchases on the advertisement body.

"For example, if we see (investment) advertisements that offer returns much higher than reality. That is also a conduct problem," said Friderica.

"The recent issue that has been widely discussed is the problem of inhumane debt collectors, which is also a conduct problem. For example, insurance has many cases because of agents, which is also a conduct problem," she explained.

Sanctions

The OJK has also regulated sanctions for financial sector business actors who violate consumer protection. These provisions are included in Article 306 of the Financial Services Law.

"For market conduct violations, the sanctions are very clear. Starting from administrative sanctions to revocation of business permits. Then there are criminal sanctions, with penalties ranging from 2-10 years. And, there are criminal fines of up to Rp 250 billion," she explained.

Friderica also said that the authorities are committed to eradicating anyone who collects funds from the public without permission. This includes entities that offer online loans, or unregistered illegal online lending platforms.

"Please also socialize the Financial Services Law, unauthorized activities in the financial services sector have severe punishments. First, the fine can be up to Rp 1 trillion and can lead to bankruptcy. Second, imprisonment," she said.

Therefore, Friderica urged individuals such as illegal online lending operators to stop their illicit activities and comply with the provisions of the Financial Services Law.

"Please be aware that those who like to play around with this, the era has changed. If in the past it was a common crime, the punishment might be lenient and not all assets seized. But in this case, we will certainly coordinate with the police. Because the victims are our relatives, our closest people," she requested.