Should Financial TV Adverts Be Banned?
In terms of their personal finances, it’s a dangerous time for many people at the moment. The recession, job fears, record personal debt levels and uncertainties about the future, all lead to a degree of vulnerability.
And that vulnerability, claims consumer watchdogs, has led to many people being exploited by financial companies, especially through the medium of television advertising.
And they are pointing out that there is a discrepancy in approach, when the Government is considering warning people about certain financial products (almost along the lines of health warnings on cigarette packets), yet not control financial advertising on TV.
TV is of course a popular advertising medium and most people are influenced by what they see in between their favourite programmes. But whereas buying a television, or food product will usually not have long term implications, buying a financial product can have long term issues.
Current advertising standards are strict when it comes to consumer goods. You cannot advertise tobacco products and alcohol cannot be associated with personal success, or attractiveness.
And the consumer watchdogs think that financial product companies get away with murder, associating their products with all kind of overt and subliminal lifestyle messages.
Adverts promoting debt recovery schemes and property equity release plans tend to gloss over many of the issues involved, and concentrate on happy, smiling people who have all their problems removed by the product on offer.
But it’s not a one-sided argument of course.
Others maintain that financial product advertising is a good thing, as it allows people to understand that there are a large number of companies out there who offer superb products that can actually change people’s lives for the better. And it’s unlikely that without TV advertising on prime-time, day-time and satellite channels, that most people would ever be exposed to the wide range of financial products available.
And those on the pro-side of the argument believe that the financial products industry cannot sensibly be compared with the tobacco and drinks industries.
Furthermore, most financial companies offering the consumer products are already closely monitored by the Financial Services Authority. This is a body which regulates companies that offer financial products. Thus, no person should use a company which offers a financial scheme, plan, or device that has not been approved by the Financial Services Authority. And this body is currently reviewing how financial products are promoted and sold to the public.
What’s more, the Advertising Standards Authority vets TV adverts, so if a company was deemed to be selling something illegal, or misleading, then this body would step in and have to the power to make the company change their message, or pull the advertisement altogether.
So, whatever view people hold, it really comes down to the viewer making sure that what they commit to in terms of financial products, they are sure they have made the right decision. And this means that people should not act hastily, take external advice if possible and compare similar products on offer. Remember the old saying, act in haste, repent at leisure.
Guest Article by Neil Camp
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My name is Alan Potts and I'm the Editor of the BUYability web site and Managing Director of BUYability Limited. You can connect with me or keep up to date with new posts on this blog via the following social media sites: 
