MOSCOW, March 16 (RAPSI) - The State Duma Committee on Constitutional Legislation and State Building recommended on Monday that the lower house of the parliament pass amendments to the Code of Administrative Offenses to include fines of up to 1 million rubles ($16,000) for violations in financial services advertising, RIA Novosti reports.

The bill, authored by United Russia member Viktor Klimov, introduces a provision to the code that imposes fines for “violations of the legal requirements for financial services advertising of 5,000 to 10,000 rubles ($80 to $160) for individuals, of 20,000 to 50,000 rubles ($301 to $802) for officials and 300,000 to 1 million rubles ($4,800 to $16,000) for corporations.”

According to the explanatory note to the bill, the Law on Consumer Loans took effect on July 1, 2014, to regulate the majority of controversial aspects of creditor and debtor relationships. The unresolved issues include violations in financial services advertising and marketing campaigns.

Klimov said that currently, financial services advertising leads in advertising violations. Up to 25% of all violations revealed by the Federal Antimonopoly Service, take place in this industry. Banks try to attract customers by involving celebrities in their advertising or using non-conventional marketing approaches – however, they do not provide full and truthful information about the terms of their services. As a result, loans turn out much more expensive than the advertising claims.