NBWM / ING – Brave new world

Until recently, Dutch businesses transferring money abroad in foreign currencies were dependent on major banks like ING, Rabobank and ABN Amro. The rates set by the banks have stayed at roughly the same level for years. The Nederlandsche Betaal- en Wisselmaatschappij (NBWM) set the cat among the pigeons at the end of 2016, with a new fixed rate of €5 per transfer. In a comparative advertising campaign with adverts in the financial daily newspaper Financieel Dagblad, on the news radio station BNR Nieuwsradio, and on its own website, NBWM pitched itself against the banks: “At ING, Dutch businesses pay €50 for an international payment of €50,000 in foreign currency. We charge only €5,-"

ING lodged a complaint with the Dutch Advertising Code Committee (RCC), alleging that NBWM’s (comparative) advertising was misleading. The total costs of the transaction exceed €5, because exchange charges have to be paid in addition to payment charges. According to ING, NBWM should have mentioned the exchange charges. The RCC agreed with ING. Following the RCC’s decision, NBWM amended its advert, but still sought a ruling in principle from the Appeals Tribunal (CvB).

On appeal NBWM reaped the rewards. The average member of the NBWM’s target business audience understands that an international transfer in foreign currency involves both transfer charges and exchange charges, and also understands that the NBWM’s advert only relates to the transfer charges. The CvB ultimately rejected ING’s complaint.

NBWM was assisted in this case by Daniël Haije and Bram Duivenvoorde