If an officer of the bank has a personal blog and from time to time mentions bank products, rates, etc., is that considered advertising subject to all the regs? We have a policy that speaks to the potential reputation risks to the bank, but what about compliance ramifications?

Does anyone have any thoughts on this? Is the bank responsible for the content of the blog because the officer "represents" the bank because of his position?

If there are trigger terms those can be ads for the bank. I have known examiners to find these on the internet and bring them to the attention of banks - one recent one discussed mortgage products.

Thanks, Kathleen - that's what I was afraid of. I have a Google alert set up to tell me if the bank's name is used and I got one because one of the officer's was discussing the bank's mortgage products in his blog. I wasn't sure whether it's advertising or not and whether I need to warn him about it.

I appreciate your help.

You would just have to show him the definitions - for example - Regulation Z:

Advertisement means a commercial message in any medium that promotes, directly or indirectly, a credit transaction.

Coverage . Only commercial messages that promote consumer credit transactions requiring disclosures are advertisements. Messages inviting, offering, or otherwise announcing generally to prospective customers the availability of credit transactions, whether in visual, oral, or print media, are covered by Regulation Z (12 CFR part 226).

i. Examples include:

C. Electronic advertisements, such as on the Internet.

So, in your opinion, the officer's personal blog is advertising for the bank because of his officer position? I just want to make sure I understand. The officer himself is obviously not a creditor to whom the reg would apply, but his blog is advertising on behalf of the bank because he's an officer? If a teller had a personal blog, would it also be advertising for the bank?

Your employees are agents for your institution. To the public, your employee is the bank. IMO, any direct and specific discussion of your bank products by an employee is a form of advertisement.

If the officer's blog was general in nature (ie banks make loans, they are diverse in pricing, etc) that wouldn't constitute advertising. BUT if the officer's blog speaks specifically about your bank products (ie at ABC Bank we have HELOCs at prime, or at the bank where I work 30 yr mortgages are priced at 4.5%, etc), in my opinion, that is advertising. Then you would need to look at what he said to find triggering terms.

I would suggest that you develop a policy around use of social media, then train and hold accountable to that policy. Your policy may want to prohibit employees from discussing bank products and services in personal or other non-bank related social media. Or you may want to allow that, but if so, you should probably have some procedures recognizing that this might rise to the level of "advertising" and requiring some type of approval process for compliance regarding content. The direction is up to you, but you definitely need to adopt a stance, then develop appropriate procedures and controls.

Many thanks to all who responded. As I said, we do have a policy. Right now that policy allows personal blogs but requires employees to state that the views expressed in the blog are their personal views and not those of the bank. It also prohibits the disclosure of confidential information and/or abusive statements in the blog. At this point, the policy doesn't address the possibility that the blog is advertising and that regs apply. That's why I'm trying to determine whether I need to recommend changes.

Is a blog a "Commercial Advertisement." If it is not paid by the bank and the user clearly states that it is not bank sponsored (personal views), then I don't see how that is a commercial advertisement.

I think blogs can be classified as commercial advertisements. Blogs and social media are a relatively new phenomenon in relation to banking regulations. Plus the fact that the officer appears to be using the blog to solicit business. It is a form of marketing and can definitely fall into the broad category of "on the Internet".

The personal views disclaimer would only work if the officer is speaking generally about banking. If he specifically describes or offers a bank product, then IMHO he is soliciting/advertising.

I agree, Dani.

I agree that these personal web spaces can become advertisements. When they do, these additional promotional channels create additional work for the bank employees responsible for advertising compliance. The simplest way to sidestep the issue is to maintain a policy regarding use of the bank's name in all electronic communications and postings. If you want your sales force to use e-promotions, the policy would authorize that activity and state how this new advertising channel is to be controlled (including compliance.) For all other employees, the policy would prohibit use of the bank's name, OR, specifics about products and pricing.

Once again, I thank all of you who responded. This discussion has been very helpful - at least to me and probably to many others. I know I'll be suggesting changes to our policy based on this thread.

Deena,
Could you tell me how to set up the Google alert?
I have a google test for links to the bank, but haven't taken it the extra step that you have.

Thanks.

Google > Settings > Account Settings > Alerts

Thanks.

Do you have to establish an account in order to set these alerts?

Yes.
I already have a personal google account; however I set up a new account and used my bank email, since that is where I want the alerts to be sent.

Good information-thanks so much.

The bank would be drug into this kind of mess if a consumer felt harmed. So there is little alternative than to manage this. A policy preventing it may be some of your best insulation, but periodic reminders and checks are certainly worthwhile.