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#664810 - 01/11/07 04:46 PM Member FDIC on promotional products, etc
Matt Kelly Offline
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Durango, CO
As part of an internal discussion with out compliance folks regartding use of member FDIC or the FDIC logo whenever we use our logo I have been reading section, 328.3 Mandatory requirements with regard to the official advertising statement and manner of use by banks, it seems to me that promotional items receive exclusion because not only are they small, but because they are promotional in nature and not advertisements.

My conclusion is further is that our logo does not need to be accompanied by the FDIC logo or Member FDIC when it is not being used in an advertisement – such as on a t-shirt or literature produced by an event we are sponsoring.

I draw this conclusion based upon the fact that promotional products seem to be specifically excluded as is bank stationary, as well as radio and TV ads that do not exceed 30 seconds.

Please let me know how you are dealing with this and why.

Thanks,

Matt

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#665247 - 01/11/07 10:44 PM Re: Member FDIC on promotional products, etc Matt Kelly
John Burnett Offline
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Unfortunately, there is no definition of "advertisement" in the current rule. But there is one in the new rule that you'll have to comply with this fall. And "nonspecific ads" that don't promote products (but include the bank name) need the official advertising statement or the FDIC logo (under the new rule, and, in my opinion, the current rule, too).

Even the current rule limits the exception for promotional material to those on which it is impractical to include the FDIC logo or ad statement. It's not based on whether the item is an ad. And when you really think about it, the bank didn't pay to have its name put on that little keychain, T-shirt, calendar or pencil just for the hell of it. They are ads.
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#738230 - 05/22/07 08:54 PM Re: Member FDIC on promotional products, etc John Burnett
tjbanker Offline
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When you have the bank's logo (name) on a promotional item and the item is large enough that the FDIC logo could be placed on the promotional item, does the FDIC logo need to be placed with the bank's logo (name) if there is no advertisement such as Anytown Bank, offering a full range of banking services. The promotional item just states Anytown Bank. Thanks for any help.

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#738428 - 05/23/07 01:17 PM Re: Member FDIC on promotional products, etc tjbanker
John Burnett Offline
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Ads that only include an insured bank's name, with no specific reference to products, are required to include the FDIC membership statement (in some form). The test for whether the statement needs to be on promotional items is whether it's impractical to include the statement.

IMO, the example in the regulation that includes the wording "offering a full range of banking services" creates a problem because it suggests that in order to be an ad you have to have something besides the bank's name. I disagree. You would not spend the money to have your bank's name on a "promotional item" if its purpose was not to get your bank's name in front of the public. I believe a promotional item is an advertisement by definition if it carries your bank's name.
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#738506 - 05/23/07 01:59 PM Re: Member FDIC on promotional products, etc John Burnett
tjbanker Offline
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Thanks for the verification John.

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#739309 - 05/24/07 12:41 AM Re: Member FDIC on promotional products, etc tjbanker
David Dickinson Offline
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Well said John. In fact, I think you said that better than I ever heard it explained. I'll have to print this for future reference. Of course, I'll quote you.

FWIW, I agree 100%
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#739526 - 05/24/07 02:47 PM Re: Member FDIC on promotional products, etc David Dickinson
John Burnett Offline
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One of my few lucid moments, I'm sure!
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#745586 - 06/04/07 02:53 PM Re: Member FDIC on promotional products, etc John Burnett
Frank Ernest Offline
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Under the new rules if employees have a name badge with the bank's name on it, would it require the FDIC membership? Does it matter if they will wear the badge inside the bank premises or outside the bank premises?

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#746254 - 06/04/07 11:54 PM Re: Member FDIC on promotional products, etc Frank Ernest
wavewatcher Offline
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We redesigned our name badge with that thought in mind:
Name of Bank
Name of Person
FDIC Member and EHL (words only because of the size)

We did that under abundance of caution since we use our name badges at promotional sites and trade shows.

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#747391 - 06/06/07 12:31 PM Re: Member FDIC on promotional products, etc wavewatcher
David Dickinson Offline
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My opinion: You don't need "Member FDIC" on name tags. It's not an advertisement, it's a name tag that identifies the person.

Originally Posted By: wavewatcher
FDIC Member and EHL (words only because of the size).

We did that under abundance of caution since we use our name badges at promotional sites and trade shows.

Now to a tangent: Name badges aren't very big. Why say "Equal Housing Lender"? Most certainly, this isn't a home loan ad? Even if the person is at a home loan show.

Second, it should be "Member FDIC" not "FDIC Member".

Quite honestly, I wouldn't worry about any of this.
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#1877681 - 12/11/13 04:01 PM Re: Member FDIC on promotional products, etc wavewatcher
tyr0n3 Offline
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Originally Posted By: wavewatcher
We redesigned our name badge with that thought in mind:
Name of Bank
Name of Person
FDIC Member and EHL (words only because of the size)

We did that under abundance of caution since we use our name badges at promotional sites and trade shows.


FDIC regulates that the "doghouse" logo must be present in advertising rather than just the words. OCC regulated banks do not require the "doghouse" though.

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#2012022 - 05/05/15 01:34 PM Re: Member FDIC on promotional products, etc Matt Kelly
Soccer Offline
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Bringing this old thread to life!
We would like to supply each employee with a golf shirt to wear to work during the summer months on Fridays. The shirt will have the bank logo on it, should it include member FDIC?
I have been to training classes that state yes, but the rule to me is not clear on this.
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#2012048 - 05/05/15 02:37 PM Re: Member FDIC on promotional products, etc Matt Kelly
David Dickinson Offline
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There's an exception for "where it's impractical" [§328.3(d)]. If you think it's impractical to put "Member FDIC" on the golf shirt, you can try to hang your hat on this exception. Otherwise, the shirt needs it. I would put it on the shirt to avoid the potential argument.

Advertisements which are of the type or character making it impractical to include thereon the official advertising statement including, but not limited to, promotional items such as calendars, matchbooks, pens, pencils, and key chains;
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#2012050 - 05/05/15 02:38 PM Re: Member FDIC on promotional products, etc Matt Kelly
Soccer Offline
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Thank you
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#2026771 - 07/13/15 04:13 PM Re: Member FDIC on promotional products, etc Matt Kelly
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Another FDIC question!

Would the exception extend to Debit Cards? Or should we have Member FDIC on them?
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#2026780 - 07/13/15 04:35 PM Re: Member FDIC on promotional products, etc Matt Kelly
rlcarey Online
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None of mine have it on it. What about a debit card would trigger inclusion?
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#2026842 - 07/13/15 07:14 PM Re: Member FDIC on promotional products, etc Matt Kelly
John Burnett Offline
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Start with the question "Is this an advertisement?" If the answer is no, you don't have a problem.
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#2031004 - 07/31/15 01:48 PM Re: Member FDIC on promotional products, etc Matt Kelly
Irishguy Offline
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Kentucky
John or Randy....let me ask you this. What if the card is branded? I think part of the reasons why a bank would want to brand a card is for the advertising it generates. And if that is the case, the card would need the "Member FDIC" tag. Thoughts??

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#2031130 - 07/31/15 05:44 PM Re: Member FDIC on promotional products, etc Matt Kelly
rlcarey Online
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A plastic card used for conducting transactions is not an advertisement, plain and simple.
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#2031580 - 08/04/15 06:06 PM Re: Member FDIC on promotional products, etc Matt Kelly
John Burnett Offline
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You got Randy's vote, and I concur. It's just not an advertisement.
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#2118162 - 02/14/17 05:10 PM Re: Member FDIC on promotional products, etc Matt Kelly
Funky Falcon Offline
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Bringing this old thread back to life again...

Do promotional items with the Bank's name that are considered advertisements have a certain retention period? Would they fall under the Reg. DD two year retention? Or, since they are not specifically mentioning a deposit product, would they be exempt from that?

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