Overview

This bill aims to restrict advertising of high-cost credit agreements, particularly to protect vulnerable groups like children. It will achieve this by limiting when these advertisements can be broadcast and by giving the government powers to regulate their content and format.

Description

The bill defines "advertising" broadly to encompass any activity promoting high-cost credit agreements for commercial gain. It mandates that Ofcom (the Office of Communications) create and enforce rules for broadcasting these advertisements, restricting them to between 9 pm and 5:30 am. The Secretary of State will also create regulations covering the form, content, timing, and location of all high-cost credit advertising, considering the protection of children and vulnerable individuals. These regulations must be implemented within six months of the bill's passage. "High-cost credit agreement" is defined using the Financial Services and Markets Act 2000.

Government Spending

The bill does not directly specify government spending figures. However, costs will be incurred by the government in drafting and implementing the regulations, as well as by Ofcom in enforcing the broadcasting restrictions. The exact financial impact will depend on the scope and complexity of the regulations.

Groups Affected

• Lenders offering high-cost credit: These businesses will face significant restrictions on their advertising, potentially impacting their marketing strategies and customer reach.
• Advertising agencies: Agencies handling high-cost credit advertising will need to adapt to the new regulations.
• Broadcasters: Television and radio stations will need to comply with the new broadcasting time restrictions.
• Consumers: The bill aims to protect vulnerable consumers, particularly children, from harmful high-cost credit advertising. The effectiveness of this protection will depend on the details of the regulations.
• Ofcom: Ofcom will have increased responsibilities in regulating and enforcing compliance with the new advertising rules.

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