Ikano Bank fined 2 million kroner for misleading IKEA card marketing

Ikano Bank has been ordered to pay a 2 million Danish kroner fine for violating marketing laws through misleading practices related to IKEA's shopping card. The ruling by the Court in Glostrup stems from deceptive wording used in a February 2023 letter sent to 4,627 customers regarding available credit amounts, as well as misleading marketing targeted at new customers.

The Danish Consumer Ombudsman, Torben Jensen, stated satisfaction with the verdict, highlighting its importance in ensuring consumers clearly understand the implications of taking on debt. The court found that the letter's content and phrasing were misleading, failing to adequately disclose the terms and consequences of what was essentially a loan structured as a credit line draw. This lack of clarity was a key factor in the court's decision.

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We are satisfied with the ruling, which emphasizes that it must be clear and understandable to consumers when they take on debt and what obligations it entails.

Further scrutiny fell upon the marketing of the shopping card to new customers on IKEA's website. While an offer of credit up to 130,000 kroner without interest or fees for the first 60 days was advertised, the full terms and conditions required scrolling down the page to find. The court deemed both the website's content and its layout misleading.

In response, Janne Rützou, Country Manager for Ikano Bank in Denmark, affirmed the bank takes the matter seriously and has cooperated with authorities. Rützou stated the bank strives for transparency and is committed to adhering to marketing laws. The bank has reportedly implemented changes since receiving a hearing letter from the Consumer Ombudsman in 2024, aiming to prevent future issues.

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We always strive to be open and transparent about our terms and conditions. It is important for Ikano Bank that our customers and the Consumer Ombudsman have no reason to criticize the bank's marketing or question the bank's intention to comply with the rules of the marketing law.