Italy's competition watchdog on Tuesday fined German online brokerage Trade Republic €2.5 million, finding that promotional material for the firm's payment card may have given consumers an inaccurate impression of the benefits on offer.
The regulator pointed to advertising that presented access to a "Saveback Programme" and used the slogan "1% makes the difference." According to the authority, the campaign did not provide sufficiently clear information about how the promotional mechanism worked, creating a risk that purchasers would interpret the offer as a conventional cashback scheme.
Specifically, the authority highlighted that consumers could have been led to believe they would receive a partial refund credited to their account for certain card purchases. In contrast to that impression, the promotion operated differently. The offer required customers to subscribe to a savings plan under defined conditions.
Under the actual terms described by the authority, Trade Republic would contribute an amount equal to 1% of the value of specified purchases made with the payment card, but only after the customer had joined the savings plan. The regulator's assessment centered on the omission of clear, prominent information making that condition explicit to prospective cardholders.
The authority's action and the resulting penalty reflect its finding that the advertisement's presentation could have materially affected consumer expectations about how and when any 1% benefit would be delivered. The measure taken by the regulator enforces clarity obligations in consumer-facing marketing of financial products.
Context and implications: The decision formalizes the regulator's view that the combination of the "Saveback Programme" label and the "1% makes the difference" slogan, absent clearer qualification, risked conveying a straightforward cashback arrangement rather than a conditional contribution contingent on plan subscription. The ruling underscores the importance of transparent disclosure in promotions for payment cards and related financial offers.
While the authority's statement outlines the structure of the promotion and the basis for the fine, it does not add further detail about subsequent steps or responses from the company.