Should shirt sponsors print a warning when they offer direct credit? The soccer team of NEC has a sponsorship deal with short term credit provider Voorschotje.nl. The shirt reads the name Voorschotje.nl (meaning: short term credit), but lacks the disclaimer providing that borrowing money costs money.
The AFM (Netherlands Authority for the Financial Markets) has strict rules regarding warnings on credit. Even advertisers of cars that offer a financial arrangement at 0% interest must mention the fact that borrowing money costs money. Is it allowed that the soccer shirt mentions the domain name Voorschotje.nl, without a disclaimer?
This is not entirely clear, not even for Minister of Finance. Is the logo considered an advertisement for credit? Then the phrase "Warning! Borrowing money costs money." is mandatory. Advertising for (brand) name of a company, such as a bank, will usually not be considered to be advertising of a bank's service of providing credit, the Minister says. In that case, the disclaimer is not necessary. But as soon as a sponsor on a shirt reads an endorsing or promotional text regarding the provision of credit, the sponsor is taking a risk. The key question concerning NEC's shirt is whether mentioning the company's name "Voorschotje.nl" is considered an endorsement for direct credit, or -as in the words of the Minister- is 'advertising for the (brand)name Voorschotje.nl'. The Minister is not clear in his answer. We think that in this case, mentioning a tradename should not be considered advertising credit. The shirts of NEC do not need to be reprinted.
Daan van Eek, advertising law attorney
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Should shirt sponsors print a warning when they offer direct credit? The soccer team of NEC has a sponsorship deal with short term credit provider Voorschotje.nl. The shirt reads the name Voorschotje.nl (meaning: short term credit), but lacks the disclaimer providing that borrowing money costs money.
The AFM (Netherlands Authority for the Financial Markets) has strict rules regarding warnings on credit. Even advertisers of cars that offer a financial arrangement at 0% interest must mention the fact that borrowing money costs money. Is it allowed that the soccer shirt mentions the domain name Voorschotje.nl, without a disclaimer?
This is not entirely clear, not even for Minister of Finance. Is the logo considered an advertisement for credit? Then the phrase "Warning! Borrowing money costs money." is mandatory. Advertising for (brand) name of a company, such as a bank, will usually not be considered to be advertising of a bank's service of providing credit, the Minister says. In that case, the disclaimer is not necessary. But as soon as a sponsor on a shirt reads an endorsing or promotional text regarding the provision of credit, the sponsor is taking a risk. The key question concerning NEC's shirt is whether mentioning the company's name "Voorschotje.nl" is considered an endorsement for direct credit, or -as in the words of the Minister- is 'advertising for the (brand)name Voorschotje.nl'. The Minister is not clear in his answer. We think that in this case, mentioning a tradename should not be considered advertising credit. The shirts of NEC do not need to be reprinted.
Daan van Eek, advertising law attorney