Senate approves law requiring warnings in advertising of credit services

The Senate has approved a law requiring warnings in advertisements for credit services.

In order to protect consumer rights, Uzbekistan is proposing to strengthen the requirements for advertisements for credit, financial and insurance services. This was announced at a plenary session of the Senate during the discussion of the law on amendments and additions to the Law "On Advertising".

It is noted that in recent years, work has been carried out to protect the rights and legitimate interests of consumers in insurance services and credit and financial matters, and to create additional relief for the population and entrepreneurs.

The new amendments also provide for strengthening information and propaganda work aimed at increasing the insurance literacy of the population, including entrepreneurs. According to the law, information aimed at increasing insurance literacy will be included in the social information. This will create an opportunity for wider promotion of materials aimed at raising the public's awareness of insurance services.

Also, a requirement is being established to include a warning that is important for consumers in the advertising of financial services. According to it, advertising of credit products must contain information that improper assessment of one's solvency and failure to fulfill debt obligations can lead to financial risks. In addition, authorized bodies in relevant areas are also being included in the list of advertisers of social information.

Senators noted that these changes will serve to increase the public's confidence in insurance services, as well as to raise the awareness of citizens and entrepreneurs about the financial risks associated with obtaining a loan. At the end of the discussion, the senators approved the law.

On March 17, deputies of the Legislative Chamber adopted in the second reading a law that provides for the introduction of an obligation to provide warnings about the consequences of taking out a loan in credit advertisements. The draft law provides for further regulation of the advertising of financial services, increasing public awareness of the risks associated with credit, and fostering a culture of responsible borrowing.