Misselling Technique – Unfair Sales Practice

Misselling technique refers to a situation in which a client is offered a product or service that does not match their needs, life situation, or level of knowledge. This is often done in a misleading way. This phenomenon occurs primarily in the financial and insurance sectors. In these sectors, products are complex, and the information asymmetry between the business and the consumer is particularly high. In practice, financial misselling can lead to serious consequences. These may include both financial losses and legal risks.

In this article, we explain what misselling is. We also describe when unfair sales of financial products occur. In addition, we present the most common examples of misselling and outline the liability of entrepreneurs.

Misselling Technique – What Is It?

Misselling means offering a consumer a financial product or service that does not match their needs, situation, or profile. It can also mean presenting a product in a way that is not appropriate to its actual nature.

This definition comes directly from legal provisions. In particular, it is based on Article 24(2)(4) of the Act of 16 February 2007 on Competition and Consumer Protection (consolidated text: 2025, item 1714). This provision classifies misselling as a practice that infringes collective consumer interests.

In practice, this means that misselling:

• is a form of unfair market practice;
• may involve both actions and omissions, such as withholding key information;
• concerns not only the act of sale, but also marketing and the way a product is presented;
• may lead to administrative liability for the business.

Financial Misselling – Where Does It Occur Most Often?

Misselling most often appears in the financial services sector. Products in this sector are complex, and their structure is often difficult for the average consumer to understand.

Most common environments of misselling:

• banks (loans, investment products);
• insurance (life policies, additional insurance);
• investment funds;
• structured products;
• consumer loans and credit;
• payment services.

In these sectors, clients often base their decisions on information provided by an advisor. This increases the risk of manipulation or omission of key elements of the offer.

Misselling Technique – Key Characteristics

To determine whether misselling has occurred, it is necessary to analyse how the product was offered. It is also important to review the scope and quality of the information provided.

Typical features of misselling:

• mismatch between the product and the client’s needs;
• lack of information about investment risk;
• omission of costs or fees, such as liquidation fees;
• presenting a product as “safe” when it is not;
• failure to explain how the product works;
• use of sales pressure;
• lack of information about the right to withdraw from the contract;
• highlighting only benefits while ignoring risks.

Table 1. Misselling vs. proper sales

Misselling Technique In Banking And Insurance – Common Examples

Misselling can take many forms. However, certain patterns frequently appear in market practice.

Misselling Technique – examples

1. Insurance misselling

One of the most common examples is selling insurance linked to a loan.

Typical situations include:

• imposing multiple insurance policies when granting a loan;
• failure to provide General Terms and Conditions (GTC);
• lack of information about exclusions of liability;
• offering insurance that does not match the client’s situation.

2. Unit-linked insurance products (polisolokaty)

These products are a classic example of financial misselling.

Problematic features include:

• lack of information about investment risk;
• complex product structure;
• very high liquidation fees (sometimes up to 100%);
• presenting the product as a safe deposit.

3. GetBack bonds

In the case of GetBack bonds, investment products were presented as safe despite high risk.

4. Foreign currency loans

Misselling in this area included:

• lack of reliable information about exchange rate risk;
• unclear mechanisms for determining exchange rates;
• presenting loans as stable solutions.

5. Low down payment insurance

Consumers were often not informed about the real consequences of the contract. This included the possibility of the insurer seeking recourse.

Table 2. Most common forms of misselling

When Does Unfair Selling of Financial Products Occur?

Not every poor consumer decision qualifies as misselling. The key factor is how the business acted.

Misselling occurs in particular when:

• the business has information about the client but fails to take it into account;
• the client does not receive complete information about the product;
• the information provided is misleading;
• the product is unsuitable for the client’s needs or capabilities;
• the sales process is systematic and repeatable.

Misselling – Liability of the Entrepreneur

Using misselling practices may lead to serious legal consequences.

Rights of the Office of Competition and Consumer Protection (UOKiK)

The President of the Office of Competition and Consumer Protection (UOKiK) may:

• recognize a practice as infringing collective consumer interests;
• order the practice to be discontinued;
• impose financial penalties;
• require the business to remedy the effects of the infringement.

Under the law, a decision may be issued both during an ongoing infringement and after it has ended.

Civil Liability

A consumer may pursue:

• annulment of the contract;
• reimbursement of payments;
• damages;
• claims based on being misled.

Limitations

Proceedings before UOKiK concern only practices affecting groups of consumers. Individual cases must be pursued through civil litigation.

How to Protect Yourself from Misselling?

Although regulations prohibit misselling, practice shows that it still occurs.

Key principles for consumers

• carefully read the contract and all attachments (GTC, regulations);
• do not make decisions under time pressure;
• ask questions about risks and costs;
• verify information with an independent advisor;
• check opinions about the product and institution;
• assess whether the product is truly needed.

Warning signs

• “risk-free product”;
  • no time to review the contract;
  • no access to documentation;
  • overly complex product structure;
  • inconsistent information from the advisor.

Misselling Technique – Summary

Misselling is a serious issue in the financial market. It involves selling products that do not match consumer needs or presenting them in a misleading way. The problem mainly affects the banking, insurance, and investment sectors.

From a legal perspective, misselling is a practice that infringes collective consumer interests. It may result in both administrative and civil liability for the business.

Understanding how misselling works and carefully analysing financial offers are the basic tools for protecting yourself against unfair sales practices.

Have you been a victim of misselling?

If you suspect misselling or want to assess your financial contract, contact us. We offer contract analysis, risk assessment, and support in pursuing claims.

FAQ – Frequently Asked Questions About Misselling Technique