Italy’s competition authority has fined Germany-based Trade Republic EUR 2.5 million over misleading advertising for its payment card. 

According to Reuters, the regulator found that promotional materials for the card lacked sufficient clarity, potentially leading consumers to form inaccurate expectations about the nature of the benefits on offer. 

Saveback scheme misrepresented as cashback 

At the centre of the case is Trade Republic’s ‘Saveback Programme’, which the company promoted through an advertising campaign using the slogan ‘1% makes the difference’. According to the authority, the promotional messaging failed to make sufficiently clear that the programme was not a conventional cashback mechanism — a model under which consumers typically receive a direct partial refund on eligible purchases made with a payment card. 

Instead, the authority found that the offer involved an invitation to subscribe to a savings plan under specific conditions. Only upon joining that plan would Trade Republic contribute an amount equivalent to 1% of the value of selected card purchases. The distinction between a cashback refund and a conditional contribution to a savings product is material, and the regulator concluded that the lack of clear disclosure could have misled consumers into believing they were signing up for the former. 

Regulatory context and implications 

The ruling reflects growing scrutiny by EU consumer protection and competition authorities over how financial products and promotional benefits are described in advertising. Across several jurisdictions, regulators have moved to enforce stricter standards around the accuracy and transparency of financial promotions, particularly where product mechanics may not align with consumer expectations shaped by familiar market conventions such as cashback. 

In addition, Trade Republic, which operates as an online brokerage and has expanded its product range to include payment cards and savings-linked features, has been building a retail customer base across Europe. The Italian fine draws attention to the compliance obligations that accompany consumer-facing product launches in regulated markets, particularly where promotional language touches on financial returns or benefits. 

The fine of EUR 2.5 million (approximately USD 2.89 million) was confirmed by the Italian competition authority. Trade Republic had not issued a public comment in response to the ruling at the time of reporting.