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#2170054 - 03/26/18 03:55 PM Internet advertising Reg Z / Reg DD
Cracked Egg Offline
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Joined: Sep 2013
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Kentucky
I'm getting myself confused. (no surprise there)

When we do a loan ad on the internet, it is permissible to have a direct link for the disclosures.
1026.24(e) #4 in the interpretation: "For example, a term triggering additional disclosures may be accompanied by a link that directly takes the consumer to the additional information."

However, when advertising deposit rates on the internet, Reg DD does not allow the same thing. (that I can find)
It appears that internet deposit ads need all required disclosures and there are no exemptions.
1030.8(e) interpretation: "The exemption for advertisements made through broadcast or electronic media does not extend to advertisements posted on the Internet or sent by email"

We want to place a small internet ad on a televisions website (not a TV ad) talking about CD rates. Marketing wants to keep it as uncluttered as possible and have asked to use the "click here" option. But I don't think we can do that.

Can anyone tell me if an internet deposit account ad with triggering terms can have a link?

Thank you
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#2170137 - 03/26/18 07:01 PM Re: Internet advertising Reg Z / Reg DD Cracked Egg
Adam Witmer Offline
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Comment 9 from part 1030.8(a) of Regulation DD states the following:

9. Electronic advertising. If an electronic advertisement (such as an advertisement appearing on an Internet Web site) displays a triggering term (such as a bonus or annual percentage yield) the advertisement must clearly refer the consumer to the location where the additional required information begins. For example, an advertisement that includes a bonus or annual percentage yield may be accompanied by a link that directly takes the consumer to the additional information.
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#2170144 - 03/26/18 07:07 PM Re: Internet advertising Reg Z / Reg DD Cracked Egg
Cracked Egg Offline
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Fantastic. Thank you Adam, I appreciate your help.
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#2170148 - 03/26/18 07:15 PM Re: Internet advertising Reg Z / Reg DD Cracked Egg
Dan Persfull Offline
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For example, an advertisement that includes a bonus or annual percentage yield may be accompanied by a link that directly takes the consumer to the additional information.

Note the word directly.
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#2170151 - 03/26/18 07:22 PM Re: Internet advertising Reg Z / Reg DD Dan Persfull
Adam Witmer Offline
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Originally Posted By Dan Persfull
Note the word directly.


Thus, 1 click away.
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#2170152 - 03/26/18 07:22 PM Re: Internet advertising Reg Z / Reg DD Cracked Egg
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Joined: Sep 2013
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Kentucky
Yes sir, I've made that exact comment to my marketing people. I plan to review the Ad and test the link before it goes live.
Some how I'm betting the link will just go to the home page and not the disclosure as instructed.
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#2174280 - 04/19/18 04:45 PM Re: Internet advertising Reg Z / Reg DD Cracked Egg
Jolynn Offline
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Joined: Oct 2010
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The minimum balance required to obtain the APY disclosed in the advertisement. For tiered‑rate accounts, the advertisement must state the minimum balance requirement for each tier in close proximity to the APY). This information must be disclosed with equal prominence.


Would this Comment 9 form part 1030.8(a) of Reg DD also apply to tiered rates?

I'm just double checking myself because I have used this comment as means to rebuke this recommendation in the past. But the the 1030.8(e) reference makes me think I am wrong.

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#2174322 - 04/19/18 06:13 PM Re: Internet advertising Reg Z / Reg DD Cracked Egg
David Dickinson Offline
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Quote:
Would this Comment 9 form part 1030.8(a) of Reg DD also apply to tiered rates?

I don't understand. This section is talking about tiered rates.
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#2174338 - 04/19/18 06:40 PM Re: Internet advertising Reg Z / Reg DD Cracked Egg
Jolynn Offline
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Joined: Oct 2010
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Exemption for certain advertisements. (1) Certain media. If an advertisement is made through one of the following media, it need not contain the information in paragraphs (c)(1), (c)(2), (c)(4), (c)(5), (c)(6)(ii), (d)(4), and (d)(5) of this section:

(c)(3) Minimum Balance - was not included in the exemption list

When I saw that minimum balance wasn't included in the exemption list I thought I had made a mistake.

Thank you!

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#2174552 - 04/21/18 12:43 AM Re: Internet advertising Reg Z / Reg DD Cracked Egg
David Dickinson Offline
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Now I understand. Here's an excerpt from our training manual on Advertising, specific to this area:

Exemption for Certain Advertisements:
Some elements of otherwise required advertising disclosures are not required in certain advertising media.

a. Exempted Media:
Disclosures are limited for advertisements in the following media:

i. Broadcast or electronic media, such as TV and radio (does not include the internet);
ii. Outdoor media; and
iii. Telephone-response-machines.

b. Content Excluded:
i. A statement that the rate may change for variable rate accounts;
ii. The time the APY is available;
iii. The minimum opening deposit, if greater than the minimum required to earn the advertised APY;
iv. A statement that a penalty may be imposed for early withdrawal; and
v. For bonus offerings, an indication of when the bonus will be provided.

c. Content Still Required:
i. None, if an APY or bonus is not mentioned.
ii. If the APY is mentioned:
A.) Spell out Annual Percentage Yield once;
B.) The minimum balance required to earn the APY; C.) For time accounts, the term of the account; and D.) The statement “Member FDIC”.

iii. If a bonus is mentioned, the:
A.) APY [and therefore, the requirements of paragraph c) ii). above];
B.) Time required to earn the bonus; and
C.) Minimum balance required to earn the bonus.
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#2174836 - 04/24/18 02:20 PM Re: Internet advertising Reg Z / Reg DD Cracked Egg
kiecan Offline
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If we have a banner ad that has the APY listed, do we need to spell out APY in the banner ad or can it spelled out on the 1-click away landing page and just APY in the banner?

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#2190788 - 08/28/18 01:07 PM Re: Internet advertising Reg Z / Reg DD Cracked Egg
Bec Offline
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Dusting off this old thread but I have the same question as Kiecan. If we have a digital ad and it has an APY, do we have to spell out Annual Percentage Yield on the Ad or is it ok if it is found in the "one click away" information and legal disclosure? Also, if the product being digitally advertised is a tiered product, must we list all of the tiers on the face of the ad or again, have them spelled out on the linked document. Currently, the ad only has the highest tier listed.
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#2190850 - 08/28/18 04:14 PM Re: Internet advertising Reg Z / Reg DD Cracked Egg
David Dickinson Offline
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kiecan is referring to an internet banner (I assume because of the reference to 1-click away). The Commentary to §1030.8(a) #9 indicates that disclosures can be included in a link (1-click away). That includes spelling out the APY.

If an electronic advertisement (such as an advertisement appearing on an Internet Web site) displays a triggering term (such as a bonus or annual percentage yield ) the advertisement must clearly refer the consumer to the location where the additional required information begins. For example, an advertisement that includes a bonus or annual percentage yield may be accompanied by a link that directly takes the consumer to the additional information.

§1030.8(b) states (in part):
The abbreviation “APY” may be used provided the term “annual percentage yield” is stated at least once in the advertisement.
I believe you can spell it out in the disclosures that are 1-click away and don't need to have it in the banner.

Similarly, I believe the tier disclosures can be 1-click away too.
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