Topic: Social Media
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We want to advertise on Facebook some generic items and services we offer, such as eStatements and an app to monitor transactions. The app and eStatements are available for both our credit and deposit products. Do we need to include a “Member FDIC” statement on each post, or is that specific to deposit accounts?
We recommend using a “Member FDIC” statement when advertising eStatements or your mobile app, since both features are available for both your deposit and credit accounts. We would view these advertisements as promoting non-specific products and services of your bank, rather than specifically promoting either deposit or non-deposit products. However, if eStatements and your mobile…
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We would like to post an advertisement for a repossessed vehicle on our Facebook page with the following statement: “Sealed bids will be accepted until (date). Bank has right to accept or reject any bids.” Do we need to include any other language?
We are not aware of any requirement to include additional language when advertising the sale of a repossessed vehicle. Your primary federal regulator, the OCC, has issued an Installment Lending booklet (linked to below) that generally refers to the need to dispose of repossessed collateral “as promptly and profitably as possible,” without going into any…
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Do we need to obtain a waiver before posting pictures with bank employees or others on our bank’s social media accounts, such as a picture of the bank president posing with a sports team that we sponsored?
No, we do not believe that you need waivers from a sports team before posting an image of the team on your bank’s social media accounts. In Illinois, the Right of Publicity Act imposes strict requirements on using an individual’s “identity,” including their likeness, for a commercial purpose, such as advertising or promoting products or…
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Some of our employees have been contacting our customers through Facebook Messenger to request that the customer contact the bank regarding various matters such as discussing delinquent loan payments or advising that a customer’s box of checks is ready for pickup. The messages are not being sent for the purpose of advertising a bank product or service. We ask customers to sign the Telephone Consumer Protection Act (TCPA) consent form at the time an account is opened or a loan is made, but it doesn’t appear to cover Facebook messaging. Are we allowed to contact a customer through Facebook Messenger about an account they have with our bank? If so, does the message need to include a method for the customer to opt out if it does not contain any advertising?
We are unaware of any law or regulation that would prohibit contacts with customers through Facebook Messenger or other instant messaging apps, but we believe that this is a risky practice and do not recommend allowing it to continue without substantial safeguards in place to ensure that your bank can view, retain, monitor and control…
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Would our bank be in violation of any laws if it placed a small symbol on our new website for customers to find, with a small prize awarded to the first customer who locates it?
No, we do not believe your bank would be in violation of any Illinois or federal laws when conducting the described website contest. Under federal law, banks are generally prohibited from dealing in lottery-related activities (other than savings promotion raffles), where participants advance money or credit in exchange for the possibility of winning more than…
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Our bank would like to hold a drawing where we give gift cards to local business that “like” and comment on our social media pages. The giveaway is open to all local businesses. Would this promotion violate the Illinois lottery prohibition?
No, the giveaway that you describe likely does not violate the Illinois or federal lottery prohibitions, given that the giveaway is open to both customers and noncustomers and businesses are not required to pay to participate, and provided that your bank follows the disclosure requirements noted below. Federal law generally prohibits banks from conducting lotteries…
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We would like to encourage customers to use our mobile wallet app without violating state and federal lottery prohibitions. Can we create a drawing where customers who use our app for five transactions are entered to win a prize? We plan to create an alternative method of entry for non-customers and customers without our mobile wallet app. Does this arrangement violate the lottery laws?
No, we do not believe that this arrangement violates Illinois or federal lottery prohibitions. The National Bank Act defines a “lottery” as an arrangement in which participants “advance money or credit to another in exchange for the possibility or expectation that one or more” will win a prize. The Illinois Criminal Code defines a prohibited…
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Do we have to obtain our employees’ consent before using their images on our Facebook page or in other marketing media?
Yes, you must obtain your employees’ written consent before using their images in any form of marketing materials, including social media posts. Illinois law requires obtaining an individual’s written consent before using their identity for commercial purposes, such as selling, advertising, and fundraising. Using an employee’s image to market your products or services on Facebook…
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If we conduct a drawing for customers and non-customers who “like” or “follow” our social media pages, is that considered a lottery in Illinois? Also, when advertising this social media drawing on our website, can we link to a separate webpage that would contain the disclosures required by the Prizes and Gifts Act? Does having the disclosures “one click away” from the advertisement satisfy the requirement that the “offer must contain each of the following [disclosures] in a clear and conspicuous statement at the onset of the offer”?
The social media drawing you describe likely is not considered a lottery under Illinois law. Illinois’ lottery prohibition includes an exception for promotions in which no payment or purchase is required to enter. In this case, both customers and non-customers would qualify for the drawing by “liking” or “following” your bank’s social media pages —…
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We would like to encourage customers to interact with our social media pages. Can we hold a drawing for customers and non-customers who have âlikedâ our pages? What disclosure requirements apply?
The social media promotion you describe likely is permissible under Illinois and federal law, provided that it is open to both customers and noncustomers, individuals are not required to pay to participate, and your bank follows the disclosure requirements noted below. Federal law generally prohibits banks from conducting lotteries or other games that require participants…