The Italian Authority AGCM claimed misleading information by the eToro platform in Europe and fined 1.3 million euros.
The Italian Competition Authority, AGCM, recently announced a fine of 1.3 million euros to the European subsidiary of retail FX and CFD provider eToro for allegedly providing misleading information regarding its stock service fees. The statement is claimed after an investigation that the authorities have launched into eToro's practices.
AGCM explicitly reports that the eToro trading platform violates Articles 20, 21, and 21 of the Consumer Code by eToro's failure to disclose sufficient details for the monetary terms and technical aspects of its products and services. This European subsidiary of eToro provides users with information on the lack of transparency regarding exchange rate fees and restrictions on portfolio transfers to other trading platforms.
"Information on the company's website states that consumers can transact shares without transaction fees, but does not mention other fees," said AGCM. "Foreign exchange risk and restrictions on user rights, in restrictions on the transfer of shares to other brokerage firms, were not disclosed."
Based on a report translated from Italian AGCM shows that incomplete information on the eToro website will enable users to make incorrect investment decisions. However, this Israeli-based broker denied with an email statement that its communications with customers about its products have been transparent.
"We truly believe in the importance of consumer protection and provide consumers with comprehensive information. We are fully considering AGCM's decision and evaluating our choices," added the company.