Russia’s FAS fines Google for illegal investment services ads
Russia’s Federal Antimonopoly Service (FAS) today announced the imposition of a fine of RUB 100,000 on Google LLC for violations of the advertising law.
The regulator notes that the law prohibits the advertising of services and products offered by entities that lack the necessary licenses. The website google.com, however, delivered ads of the investment services offered by Rypex trading limited. As FX News Group has reported, FAS has found Google in breach of the advertising law for the dissemination of Rypex ads, as Rypex did not have the necessary licenses for providing investment services in Russia.
FAS explains that Google LLC bears the responsibility for the legal status of the products and services on its website.
The administrative fines for such violations are typically of up to RUB 500,000, that is, they are not so big. FAS has found Google LLC in violation of Russia’s advertising law numerous times because of dissemination of illegal financial services ads, including Forex ads.
In November 2020, for instance, the Moscow division of Russia’s Federal Antimonopoly Service (FAS) has determined that Google LLC violated the Law on Advertising by distributing the ads of LegacyFX, a firm active in the Forex market. Google distributed LegacyFX ads via Google Adwords.
Given that LegacyFX does not have a Forex dealer license issued by the Central Bank of Russia, the firm is not allowed to offer Forex services in Russia. Neither is it allowed to advertise FX services to Russian investors. Furthermore, the advertisement of LegacyFX services included unfounded claims about the firm’s advantages over its competitors.