Topic: Advertising & Marketing
-
Can we hold a promotion with a cash prize giveaway to encourage customers to sign up for e-statements?
—
by
Although we cannot offer any legal advice, we believe that a promotional drawing can be structured to comply with the federal lottery prohibition and the Illinois Criminal Code’s prohibitions on gambling. As to federal law, the Federal Deposit Insurance Act states that a bank may not (among other things) “announce, advertise, or publicize the existence…
-
Are there any problems with advertising an account as “better than free”?
—
by
In our view, the proposed advertising slogan would raise significant UDAAP risks. It may not technically violate the Regulation DD requirement prohibiting advertisements that “refer to or describe an account as ‘free’ or ‘no cost’” if certain fees, such as a monthly maintenance fee, are imposed on the account. 12 CFR 1030.8. However, the CFPB has…
-
Are there any limits on premiums on what you can offer for new accounts? Right now, we offer gift cards. Can those gift cards be cashed at the bank?
—
by
Other than the Truth in Savings Act/Regulation DD restrictions on bonuses paid on savings accounts, we are not aware of any other restrictions on premiums offered on new accounts. Regulation DD requires that any advertisement of a bonus also include the following information, stated clearly and conspicuously: (1) The “annual percentage yield,” using that term;…
-
If our lenders are sending out email newsletters (some with generic information and some encouraging the email recipient to refinance a loan), would the CAN-SPAM Act apply, and would the emails be considered advertisements under Regulation Z?
—
by
Commercial Emails under the CAN-SPAM Act As explained by the FDIC’s Examination Manual (Chapter VIII, Section 4.1), the CAN-SPAM Act applies only to commercial emails, defined as “any electronic mail message the primary purpose of which is the commercial advertisement or promotion of a commercial product or service.” 15 USC 7702(2). The FTC’s CAN-SPAM regulations…
-
Can we hold a drawing to give away a television if the drawing is open to anyone who comes into the bank during a street fair?
—
by
If all entries for the promotional drawing are free, and no other requirements are imposed on entries, we do not believe that the bank would violate either federal or state prohibitions on lotteries by holding a promotional drawing. The National Bank Act prohibits banks from dealing in any lottery, defined as an arrangement in which…
-
Can you review a draft advertisement from our marketing department for compliance with the marketing regulations?
—
by
Unfortunately, we cannot review and approve any advertisements, as that would have to be done by your bank’s counsel. However, we can provide some general guidance on the regulations that apply to bank marketing. Regulation Z imposes several requirements on loan advertising, and the version of the advertisement you sent us does not meet all…
-
If we would like to start a relationship with a company that has a website that would send potential depositors to our website, with payment for each referral, would that be considered a deposit broker relationship or a joint marketing relationship?
—
by
We recommend that the bank consult with an attorney to determine the structure of its relationship with the company, either as a deposit broker relationship or as a limited marketing relationship. Deposit Broker Relationship We believe that the arrangement we discussed would be considered a deposit broker relationship. A “brokered deposit” includes any “deposit that…
-
Do we have to put the “Member FDIC” disclosure on every piece of marketing, even pens, pencils, etc.?
—
by
The “Member FDIC” logo on advertisements is governed by 12 CFR 328.3. The general rule: “(c) Use of official advertising statement in advertisements —(1) General requirement. 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 . . . .” Definition of “advertisement”: “(a)…
-
Is there any law or regulation requiring us to post our name on all ATMs?
—
by
We do not believe that you are required to post your name on your ATMs. Regulation E does not require that banks post their names on ATMs and requires only that they disclose any fees charged. See 12 CFR 1005.16