Most experts advise that you treat the bank’s new social media pages as you would treat any new banking product or marketing. That would involve conducting a risk assessment, updating your policies and procedures (including record retention policies), training employees, and monitoring employees and any third-parties involved with your social media pages.
When conducting the risk assessment, you should treat the social media pages as advertising for the bank. Note that while the Truth in Savings Act exempts some electronic advertising from its disclosure requirements, that exemption does not apply to internet advertisements. Comment 1, Official Staff Commentary, 12 CFR 1030.8(e)(1)(i). And, the Truth in Lending Act does not exempt internet advertising from its disclosure requirements. See 12 CFR 1026.16, 1026.24. With that in mind, consider the following laws and regulations:
- Truth in Savings Act/Regulation DD advertising rules, 12 CFR 1030.8:
- If a Facebook or Twitter post states the annual percentage yield, announces a bonus, or promotes an overdraft program, those triggering terms require several other disclosures. 12 CFR 1030.8(d), (c)12 CFR 1030.11(b). The Official Staff Commentary states that in electronic advertising, you must “clearly refer the consumer to the location where the additional required information begins. For example, an advertisement that includes a bonus or annual percentage yield may be accompanied by a link that directly takes the consumer to the additional information.” Comment 9, Official Staff Commentary, 12 CFR 1030.8(a).
- Truth in Lending Act/Regulation Z, 12 CFR 1026.16 (open-end), 12 CFR 1026.24 (closed-end):
- As with Regulation DD, posts with triggering terms must “clearly refer” consumers to a location where they can find the additional required information. 12 CFR 1026.16(c)(1)(ii)1026.24(e)(1)(ii).
- Because the rates stated in advertising must be “reasonably current,” electronic advertisements must display rates that were in effect thirty days before the post can be viewed by the public. Comment 6(ii), Official Staff Commentary, 1026.16(c)(2), 1026.14(f)(2). This requirement may necessitate the removal of posts with outdated interest rates.
- Your posts may also trigger other required statements, such as “Member FDIC” (12 CFR 328.3(b)(1)) and “Equal Housing Lender” (12 CFR 338.3(a)(1)).
Also, keep in mind any record retention requirements (or internal policies and procedures) that apply to advertising and customer complaints apply to any posts and tweets. You also may be responsible for keeping secure any personally-identifiable information that customers post on your pages.