We are seeing a lot of advertisements for "rewards checking" which pays a higher interest rate based on things such as
e-statements, certian account balance, use of debit card 10 times a month.

How are they getting around Reg. Q, paying interest on demand accounts or if classified as savings accounts the excessive transaction limits set by Reg D?

Probably a clever little device called a NOW account.

Thanks, that is what I thought. If that is the case, would the disclosure have to indicate that it is a NOW account? I have a copy of the account disclosure from one bank and it does not identify the account as a NOW account.

"NOW account" is a regulatory description. Banks use different product names -- checking, checking with interest, interesting checking (yes, I've seen it), and scores more, in their marketing.

The ad does not have to disclose that the account is a NOW account.