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Broadcasting Format and Implementation Time for Dynamic Media Advertising of Credit Cards and Cash Cards
(28 December 2004)
Letter Ref. Jin-Kuan-Yin-(IV)-0938012097
Subject:
Whether there are restrictions on the content of domestic dynamic media advertising broadcasts for credit cards and cash cards, and review of the necessity and reasonableness of various fees charged by issuers of credit cards and cash cards. Please be advised and forward the information herein.
Statement:
1. This is in response to letters dated 4 October 2004 (ref. Cyuan-Sin-2402) and 5 November 2004 (ref. Cyuan-Sin-2670) from the Bankers Association of the Republic of China.
2. It is agreed to accept the proposals of the Bankers Association with respect to the content, fixed format sizes and duration of broadcasting, and point in time for implementation, of cautionary statements in advertising. Please notify all card issuing institutions of consistent implementation beginning from 1 March 2005. With respect to the proposal that card issuing institutions clearly state interest rates and fees in prominent type in contracts, posters, flyers, and print media and, in dynamic media advertisements, indicate channels through which the applicable fees can be queried (e.g. an information website or telephone hotline), please promptly formulate specific formats and implement them beginning from 1 March 2005.
3. With respect to the self-regulation of advertising content, please refer to the ROC Trust Association’s Guidelines for Supervision of Member Advertising (photocopy attached for your reference) adopted by the ROC Trust Association, and prescribe mechanisms for reviewing media advertising of credit cards and cash cards, to achieve the objectives of self-regulation. Please report the above-mentioned mechanisms and your response on the topic of the Appropriateness of Restrictions on Advertising Broadcast Times and Advertising Content, and reply by letter to the Financial Supervisory Commission by the end of January 2005.
4. When carrying out quick card approval operations, credit card and cash card issuing institutions shall strengthen risk control/management mechanisms, and may not issue cards "without a line of credit" or "non-activated" cards at any promotional location set up elsewhere than their business locations. Additionally, "quick card issuance" may not be used as an appeal in media advertising.
5. To ensure full information disclosure and protection of the rights and interests of consumers, please inform all member institutions to refer to the disclosure model currently adopted by card issuing institutions of posting on the member institution's website, in tabular form, the interest rates and fees that are likely to be borne by card holders under the provisions of credit card and cash card contracts. And for interest rates and fees that are likely to be borne by card holders under the provisions of credit card and cash card contracts, proceed to itemize [on the contract] the rate/fee calculation standards and explain the conditions under which the fees shall be imposed (e.g., imposed once at the time of approval or imposed each time the card is used…etc.), and include in the design a space for the applicant to sign in confirmation, so as to substantially make known to applicants the rate/fee standards to avoid disputes. This measure will be formally implemented beginning from 1 March 2005.
Attachment
Content and broadcasting format for cautionary statements in credit card and cash card advertisements, formulated by the Bankers Association
1. Content of cautionary statements in advertisements
1) The cautionary statements for credit card advertisements, "Manage your finances carefully, credit is priceless" or "Manage your finances carefully, place good credit first" shall continue to be used unchanged.
2) The cautionary statements for cash card advertisements originally were, "Plan your finances carefully, and spend within your means," "Please plan your cash card use, and maintain a good credit record," and "Credit is your second life, please borrow within your means"; at the proposal of the Bankers Association, these are changed to "Plan your card use to avoid damaging your credit," "Consider your financial ability and use your cash card prudently," and "Use your card within your means to maintain long-term credit."
2. With respect to the fixed format sizes and durations of cautionary statement broadcasts in advertisements, the originally approved format of "no restriction on typeface, to appear for any two seconds, in the proportion of 1:13" is amended to "no restriction on typeface, to appear for any two seconds, in the proportion of 1:13 .
3. The above rules will be implemented beginning from 1 March 2005. |