According to a ruling by the Hamburg Regional Court against the crowd investing platform Exporo, it will have to display larger warnings in its advertising in the future.

Not without warning: equity crowdfunding investments on YouTube.

AProviders of subordinated loans and other high-risk investments must clearly warn investors in commercials of a possible total loss. It is not enough to show the warning in small print and only for a few seconds.

That was decided by the Hamburg Regional Court after a lawsuit filed by the Federal Consumer Association against the crowd investing platform Exporo.

Exporo had advertised in two promotional videos on Youtube for an investment in real estate with an annual return of up to 6 percent. The company collects money for loans to real estate project developers via its internet platform. Since the loans in the land register are only secured subordinately, investors run the risk of losing their money in the event of bankruptcy.

According to the Asset Investment Act, advertising for subordinated loans and other high-risk investments must contain a clearly highlighted warning. The notice displayed in the commercials was not clear enough to the judges.

On the other hand, the consumer advice center was unable to assert itself with the opinion that the statement “There are no costs at Exporo!” Is misleading. According to the judgment of the Hamburg Regional Court, the advertising statement is admissible because in the context it clearly refers to the fact that the stated return is not reduced by further costs.