A Saint-Etienne prosecutor has fined Caisse d'Epargne €40,000 for deceptive advertising concerning its Doubl'O product, which was marketed in 2001 and matured in 2007.
This growth product, managed by Ecureuil Gestion FCP, was linked to a basket of shares and promised to pay at maturity the greater of either 200% of the capital invested, or 100% plus 100% of the rise in the basket, unless any of the shares fell below 60% at any time.
Unfortunately for the 266,000 investors in the product, the barrier was broken and investors received the initial capital invested decreased by the management fees.
Following the maturity of the product, 6,000 investors lodged a complaint for deceptive advertising, stating that Caisse d'Epargne promised a capital return of 200% of the initial investment during the marketing period.
Some of the investors reached an amicable agreement with the retailer; a few appeared in the civil court; while the rest filed a claim through the penal court which has, for the first time, issued a verdict for a product placement.
According to Fabien Rajon, the lawyer for several of the civil parties, the aim of the suit is to "stop the aggressive commercial practice of the banks." Caisse d'Epargne has stated that it did not "cheat its clients." The only guarantee that was given was the return of capital and at no stage did it promise the "doubling" of the investment, it said.
Philippe Chassaigne, representing the prosecution, requested the fine of €40,000 for "false advertising."