ADVERTISING LAW | The AGCM fines Poste Italiane for misleading advertising

On 3 December 2024, the Italian Competition Authority (AGCM) issued Decision No. 31409 against Poste Italiane S.p.A. for disseminating misleading advertising messages about a savings app named “Libretto Smart”. The advertising campaign, which ran from January to March 2015, promoted a “1.5% annual gross interest rate” on the Libretto Smart, without adequately disclosing the key conditions required to obtain such a rate. Indeed, the promotional materials failed to provide clear and transparent information regarding the timeline restrictions (as the rate was only going to apply to funds deposited by 31 March 2015), the requirement to maintain 90% of the initial balance daily and the need to activate a linked electronic card, whereas all these conditions had to be met in order to qualify for the advertised premium rate. The AGCM deemed these omissions, combined with the emphasis on unrelated features, such as online and payment services, likely to mislead consumers about the nature of Libretto Smart, potentially influencing their economic decisions. Additionally, the AGCM found that such commercial conduct failed to meet the standards of professional diligence reasonably expected of Poste Italiane, given the company’s prominence and the complexity of the product, which was issued as part of an activity of general economic interest under the guarantee of the Italian State. Consequently, the AGCM deemed the commercial practice at issue to be unfair and in violation of Articles 20, 21 and 22 of the Italian Consumer Code, and imposed a fine of €540,000 on Poste Italiane.

Newsletter n. 103 – January 2025