E-statement Considerations
Answers by Andy Zavoina and Mary Beth Guard, BOL Gurus
Question: We are currently offering FREE E-statements to our customers enabling them to receive their statements on line. There is no charge to do this; however, if they want to receive a paper statement as well it will cost them $2.95 and an additional email address will cost $1.50. We do have an agreement drawn up that spells that out clearly. My question has to do with the advertising associated with this offer... If we advertise it as free, and it is, but when you sign up for E-statements you will stop getting paper statements unless you agree to pay $2.95 a month, what will be the requirements regarding verbiage in our advertisements in order to be in compliance?
Answer by Andy Zavoina: BIO AND CONTACT INFO
You want to ensure that your ad does not appear to be "unfair or deceptive".
You could advertise that electronic statements may be substituted for the paper statements at no additional cost.
You could clearly footnote the ad to depict the additional cost for both mediums, especially if you offer this as an option.
As a footnote to this post, you'd get more acceptance of e-statement delivery if you provide some incentive to those opting for it, without a penalty, at least for a trial period.
Answer by Mary Beth Guard: BIO AND CONTACT INFO
One more thing. If these are consumer accounts on which periodic statements are required under Regulation E, before you can legally substitute an electronic version for the paper statement, you must be sure you have complied with the provisions of the federal ESIGN Act. If the requirement is federal (which Reg E obviously is) you must comply with ESIGN in order to deliver the document electronically.
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