Uzbekistan Plans Stricter Rules for Credit Advertising

Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan plans to tighten requirements for the advertising of loans, installment payments and other financial services under a presidential resolution aimed at improving public services and creating additional convenience for citizens.

Under the document, the Competition Promotion and Consumer Protection Committee, together with the Central Bank and other government agencies, has been instructed to prepare by 1 September a draft legal act establishing new requirements for the advertising of financial services.

The proposal would require advertisers promoting loans, installment payments and consumer credit sales to disclose the amount of overpayment compared with the current price of goods, works or services, as well as the total cost payable.

In addition, advertisements for financial services would be prohibited from containing guarantees or promises of future returns if such returns cannot be determined when the contract is concluded. The requirement would also apply to promotional informational materials related to financial products.

The document also provides for mandatory warnings about the potential negative consequences of obtaining microloans. The warning text would also have to be included in microloan agreements and occupy at least 30% of the main document.

The government also plans to introduce the possibility of imposing temporary or permanent bans on the advertising of credit products found to be misleading to consumers. A draft legal act establishing this mechanism is to be prepared by the end of September.

According to the document, the proposed measures are intended to improve the transparency of financial services advertising and strengthen consumer protection.