eToro Fined €1.3 Million by Italian Watchdog for Misleading Ads

<p>The Italian Competition Authority, AGCM, fined eToro
Europe 1.3 million euros claiming the European subsidiary of the trading
platform provided misleading information about its services.
The decision reportedly followed an investigation launched against eToro by the authority. </p><p>In a statement released
by the AGCM today (Monday), the antitrust authority claims that eToro Europe
violated articles 20, 21, and 22 of the consumer code by not disclosing to users
the monetary terms and the technical aspects of its products and
services.</p><p>Disclosure of Product
and Services</p><p>According to the <a href="https://agcm-it.translate.goog/media/comunicati-stampa/2023/7/PS12313?_x_tr_sl=auto&amp;_x_tr_tl=en&amp;_x_tr_hl=en&amp;_x_tr_pto=wapp" target="_blank" rel="follow">statement</a>, which was translated from Italian, the AGCM cited
the information on eToro's website, saying that it caused users to make
investment decisions they would not have otherwise made. </p><p>"The information on
the company's website suggests that consumers can trade shares with no
commission charged on their transactions but does not state that there are other costs," the
AGCM explained. "The risks linked to the exchange rates, and the
limitation of the rights of the users, particularly the constraints to transfer
shares to other brokerage firms, were not disclosed."</p><p>The AGCM has launched
similar investigations in the past against large corporations in various
industries. The authority launched an investigation against Apple in May for <a href="https://www-agcm-it.translate.goog/media/comunicati-stampa/2023/5/A561?_x_tr_sl=auto&amp;_x_tr_tl=en&amp;_x_tr_hl=en&amp;_x_tr_pto=wapp" target="_blank" rel="follow">alleged
abuse</a> of its dominance
in the apps market.</p><p>Similarly, the AGCM
fined Amazon $1.3 billion in 2021, one of the largest penalties fined against a
US technology company in Europe. Amazon and McDonald's are the other
multinationals that have been investigated in the past by the competition watchdog. </p><p>eToro Expands Services </p><p>The latest fines against
eToro arrived when the company is expanding its services to attract more
investors. <a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a> reported a week ago that eToro had <a href="https://www.financemagnates.com/forex/etoro-launches-new-cfds-for-extended-hours-stock-trading/" target="_blank" rel="follow">launched
contracts for differences (CFDs)</a> for
extended hours of stock trading. The service provides users with an additional
three hours daily to trade. </p><p>Commenting about the
launch, Dan Moczulski, the UK's Managing Director of eToro, said: "This
launch is another example of eToro providing clients with the tools to meet
their investment needs. By further opening up markets, more people will now have
access to services which were previously limited to a few." </p><p>Additionally, eToro has
expanded the marketing of its services through sports. The brokerage firm
announced earlier this month that it had <a href="https://www.financemagnates.com/forex/etoro-enters-the-world-of-womens-football-ahead-of-the-world-cup-2023/" target="_blank" rel="follow">signed
sponsorship deals</a> with
four football clubs, Arsenal, Crystal Palance, Everton, and West Ham, in the
UK.</p><p>In an email sent to Finance Magnates, a spokesperson from eToro said that the brokerage firm was reviewing the decision by the AGCM.
"eToro's goal is to empower our users to grow their knowledge and wealth as part of a global community of investors," the spokesperson said. "We firmly believe in the importance of consumer protection and providing consumers with exhaustive information."</p><p>LSEG's FX Head of Sales departs; CNMV warns against illegal firms; <a href="https://www.financemagnates.com/forex/news-nuggets-17-july-lsegs-fx-head-of-sales-cnmv-warns-against-illegal-companies/" target="_blank" rel="follow">read today's news nuggets</a>.</p>

This article was written by Jared Kirui at www.financemagnates.com.