LegacyFX ads land Google into trouble in Russia

Google LLC has gotten into trouble with the Russian authorities again over distributing ads of an unauthorized Forex broker.

The Moscow division of Russia's Federal Antimonopoly Service (FAS) has determined that Google LLC violated the Law on Advertising by distributing the ads of LegacyFX, a firm active in the Forex market. Google distributed LegacyFX ads via Google Adwords.

Given that LegacyFX does not have a Forex dealer license issued by the Central Bank of Russia, the firm is not allowed to offer Forex services in Russia. Neither is it allowed to advertise FX services to Russian investors. Furthermore, the advertisement of LegacyFX services included unfounded claims about the firm's advantages over its competitors.

This way, Google LLC violated the Law on Advertising. Google was issued with an order to stop the violation. It faces a fine of up to RUB 500,000.

Google has faced similar action by Russia's FAS several times over the past couple of months. In October, FAS found that Google LLC was distributing ads of foreign firms active in the Forex market that were targeting Russian clients. In particular, Google Adwords was distributing advertisements of RoboForex and Just2Trade Online Ltd.

In November, FAS found Google LLC in breach of the Law on Advertising as google.com was showing an ad of unauthorized broker Rypex trading limited. The ad in question was displayed in August 2020. FAS notes that Rypex lacks the necessary license to advertise its investment services in Russia. Hence, the distribution of the ads has to stop.