IBA Compliance Connection

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Do we need to display the “Member FDIC” statement on promotional items, such as mugs, can cozies, lanyards or golf shirts? Are these items “of the type or character that make it impractical to include the official advertising statement”? Some of these items are large enough to include the disclosures, but the printable or engraveable space often is tiny, and printers and other providers often tell us that the disclosures will be unreadable.

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To qualify for an exception from displaying the “Member FDIC” statement on a promotional item, it must be “impractical” to include the statement due to the “type or character” of the item. From what you have told us, your bank has a strong argument that it is impractical to include the “Member FDIC” statement due to the space limitations for printing or engraving these types of items.

We are not aware of any FDIC interpretive guidance on this particular point, but the rule itself provides helpful examples of exempt items: “calendars, matchbooks, pens, pencils, and key chains.” Your bank could argue that as with a calendar, which is large enough to physically include the “Member FDIC” statement, other considerations make it impractical to include the statement on your bank’s promotional mugs, can cozies, lanyards or golf shirts.

We note that the “Member FDIC” requirements generally are considered low risk, but your primary federal regulator (the FDIC) does require its examiners to determine whether your bank’s advertisements are in compliance with these rules. Consequently, we recommend retaining documentation of the difficulties your bank encounters when attempting to include the “Member FDIC” statement on promotional items, such as the space limitations and warnings about legibility received from printers and vendors.

For a full list of FDIC interpretive letters addressing the “Member FDIC” requirements, see our Resources listed on the “Member FDIC” topic page on GoToIBA.com.

For resources related to our guidance, please see:

  • FDIC Advertising Statement Regulations, 12 CFR 328.3(c) (“Except as provided in § 328.3(d), each insured depository institution shall include the official advertising statement prescribed in § 328.3(b) in all advertisements that either promote deposit products and services or promote non-specific banking products and services offered by the institution. . . .”)
  • FDIC Advertising Statement Regulations, 12 CFR 328.3(d) (“The following types of advertisements do not require use of the official advertising statement: . . . (9) Advertisements which are of the type or character that make it impractical to include the official advertising statement, including, but not limited to, promotional items such as calendars, matchbooks, pens, pencils, and key chains; . . .”)
  • FDIC Compliance Examination Manual — Advertisement of Membership (“The objective of the examination is to: Determine whether public advertisements and signs comply with applicable regulatory requirements and adhere to FDIC guidance.”)