FCA warns again on misleading BNPL ads

FCA has written to BNPL providers and to the British Retail Consortium, warning them that even while some BNPL agreements remain currently unregulated, this does not mean that the financial promotion rules don’t apply – and unauthorised firms may be committing a criminal offence if their promotions are not exempt from the financial promotion restriction.

FCA is particularly concerned about the harm that might result from unexempt, unapproved promotions failing to highlight risks to customers such as the risk of taking on debt they cannot repay, the consequences of missed payments, the impact on credit files and information on charges.  It has seen a number of promotions, including several by social media influencers, that may breach CONC 3.

FCA addresses its concerns to providers, merchants that introduce customers to the providers and authorised firms who are asked to approve BNPL product promotions.

Emma Radmore