Yes, Regulation Z and its Official Interpretations permit electronic advertisements to provide the additional required disclosures through a link, provided any trigger terms in the email are “accompanied by a link that directly takes the consumer to the additional information.”
We also recommend reviewing the email to ensure that it complies with the CAN-SPAM Act, which imposes certain requirements on commercial email messages. A “commercial email message” includes any message the “primary purpose of which is the commercial advertisement or promotion of a commercial product or service,” as is the case with your email. CAN-SPAM requires such a message to: (1) clearly identify itself as an advertisement or solicitation, unless the recipient has affirmatively consented to receive advertisements, (2) contain clear and conspicuous information regarding how to decline receiving future emails, and (3) contain a valid, physical postal address for the sender. In addition, the email may not have a misleading header or “from” line. It is considered misleading if the header does not accurately identify the computer which initiated the email.
We note that some of the above restrictions do not apply to a “transactional or relationship message,” which facilitates an already agreed-upon transaction or updates a customer about an ongoing transaction. Here, however, your message is an advertisement, not a transactional or relationship message, making it subject to all the commercial email requirements discussed above.
We do not believe that any concerns will be raised by including a statement clarifying that the offer may be redeemed only by the recipient of the email or by existing auto loan customers, in order to prevent forwarding and sharing of the email offer.
For resources related to our guidance, please see:
- Regulation Z, 12 CFR 1026.16(c)(1) Open-End Credit Advertising (“If a catalog or other multiple-page advertisement, or an electronic advertisement (such as an advertisement appearing on an Internet Web site), gives information in a table or schedule in sufficient detail to permit determination of the disclosures required by paragraph (b) of this section, it shall be considered a single advertisement if: (i) The table or schedule is clearly and conspicuously set forth; and (ii) Any statement of terms set forth in § 1026.6 appearing anywhere else in the catalog or advertisement clearly refers to the page or location where the table or schedule begins.”)
- Official Interpretations, 12 CDR 1026, Paragraph 16(c)(1), Comment 2 (“If an electronic advertisement (such as an advertisement appearing on an Internet Web site) contains the table or schedule permitted under § 1026.16(c)(1), any statement of terms set forth in § 1026.6 appearing anywhere else in the advertisement must clearly direct the consumer to the location where the table or schedule begins. For example, a term triggering additional disclosures may be accompanied by a link that directly takes the consumer to the additional information.”)
- CAN-SPAM Act, 15 USC 7704(a)(5)(A) (“(A) It is unlawful for any person to initiate the transmission of any commercial electronic mail message to a protected computer unless the message provides (i) clear and conspicuous identification that the message is an advertisement or solicitation; (ii) clear and conspicuous notice of the opportunity under paragraph (3) to decline to receive further commercial electronic mail messages from the sender; and (iii) a valid physical postal address of the sender.”)
- CAN-SPAM Act, 15 USC 7704(a)(1) (“It is unlawful for any person to initiate the transmission, to a protected computer, of a commercial electronic mail message, or a transactional or relationship message, that contains, or is accompanied by, header information that is materially false or materially misleading. For purposes of this paragraph— . . . (B) a “from” line (the line identifying or purporting to identify a person initiating the message) that accurately identifies any person who initiated the message shall not be considered materially false or materially misleading; and (C) header information shall be considered materially misleading if it fails to identify accurately a protected computer used to initiate the message because the person initiating the message knowingly uses another protected computer to relay or retransmit the message for purposes of disguising its origin.”)
- CAN-SPAM Act, 15 USC 7704(a)(5)(B) (“(B) Subparagraph (A)(i) does not apply to the transmission of a commercial electronic mail message if the recipient has given prior affirmative consent to receipt of the message.”)
- CAN-SPAM Act, 15 USC 7702(2) (“(A) The term ‘commercial electronic mail message’ means any electronic mail message the primary purpose of which is the commercial advertisement or promotion of a commercial product or service (including content on an Internet website operated for a commercial purpose). (B) The term ‘commercial electronic mail message’ does not include a transactional or relationship message.”)
- CAN-SPAM Act, 15 USC 7702(17) (“(A) The term ‘transactional or relationship message’ means an electronic mail message the primary purpose of which is (i) to facilitate, complete, or confirm a commercial transaction that the recipient has previously agreed to enter into with the sender; . . . .”) (ii) to provide warranty information, product recall information, or safety or security information with respect to a commercial product or service used or purchased by the recipient; (iii) to provide— (I) notification concerning a change in the terms or features of; (II) notification of a change in the recipient’s standing or status with respect to; or (III) at regular periodic intervals, account balance information or other type of account statement with respect to, a subscription, membership, account, loan, or comparable ongoing commercial relationship involving the ongoing purchase or use by the recipient of products or services offered by the sender; (iv) to provide information directly related to an employment relationship or related benefit plan in which the recipient is currently involved, participating, or enrolled; or (v) to deliver goods or services, including product updates or upgrades, that the recipient is entitled to receive under the terms of a transaction that the recipient has previously agreed to enter into with the sender.”)