CBR, FAS recommend banks disclose cashback terms in detail

MOSCOW. Sept 14 (Interfax) - The Central Bank of Russia (CBR) and Federal Antimonopoly Service (FAS) have sent lenders a joint letter recommending that they disclose complete information on their cashback programs, the CBR said in a press release.

Banks currently emphasize the amount of the cashback, but do not always fully inform potential clients about restrictions. For example, the maximum cashback in a certain period, and the maximum and minimum purchase amounts on which cashbacks are given, the CBR said.

"Banks should disclose both the attractive conditions and restrictions on cashback programs in a comparable format so that consumers do not have inflated expectations. Consumers should be able to easily and without additional effort familiarize themselves with documents that contain complete information on cashbacks," the CBR said.

Customers should not have to carry out additional steps, such as clicking on links, the FAS said in a statement.

Misleading customers about the terms of bonus programs could be considered to be an unethical practice and a violation of the laws on protection of competition and advertising, the CBR said.