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#2075013 - 04/21/16 03:13 PM Can we use one-click rule for e-mail ad?
Tarhe Online
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If we send an e-mail to a consumer to advertise a promotional rate on a HELOC, and we state the promotional rate in the e-mail, can we use the "one click" rule within the e-mail to take the consumer to all of the required disclosures? Or would they all have to be in the e-mail?

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#2075719 - 04/26/16 05:08 PM Re: Can we use one-click rule for e-mail ad? Tarhe
Tarhe Online
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I think we'd have a good argument for applying Reg Z's "one click" rule to an e-mail advertisement (which is also an "electronic" advertisement), as long as the link is clear and conspicuous and close to the triggering term which requires the disclosures. The link will take the consumer directly to the page on our website with all of the required disclosures (and NOT to a landing page or application page that would require a second click to the disclosure page.)

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#2171411 - 04/02/18 08:51 PM Re: Can we use one-click rule for e-mail ad? Tarhe
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Bump^ . . . I was wondering this as well. I don't see anything that indicates an e-mail is an "electronic advertisement" under Reg. Z. I am actually leaning towards a "No," and thinking the full disclosures would be necessary in the e-mail itself.

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#2171432 - 04/02/18 11:07 PM Re: Can we use one-click rule for e-mail ad? Tarhe
Richard Insley Offline
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It's odd that the original post got no reply. The issue is clear and the answers are "yes" and "no."

The "one click rule" (open-end credit) is a digested descriptor for Section 1026.16(c)(1), OI #2. Although the OI mentions ads on websites, the reference is not exclusive. Obviously, an "electronic mail message" is electronic. To be an "advertisement", Section 1026.2(a)(2) tells us the message must be "a commercial message in any medium that promotes, directly or indirectly, a credit transaction." Any message promoting HELOCs is unquestionably an advertisement. Combining these two determinations--you have an electronic advertisement...and the "one click rule" applies.
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#2171589 - 04/03/18 06:17 PM Re: Can we use one-click rule for e-mail ad? Tarhe
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Thank you Richard. I wasn't totally confident in the e-mail being a suitable equivalent to an electronic advertisement mentioned in the Reg, as the only clarifications always refer to web sites.

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#2172380 - 04/06/18 06:54 PM Re: Can we use one-click rule for e-mail ad? Richard Insley
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Richard, I cannot find the source for the rule about not making the reader scroll several times to get way down to the bottom of the Website page to read the additional disclosures or terms and conditions. Unfortunately, I no longer have the great handouts you provided at a seminar years ago, which were my best resource!

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#2172393 - 04/06/18 07:52 PM Re: Can we use one-click rule for e-mail ad? It's Fun To Be in Compliance!
Richard Insley Offline
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As discussed above, Z and DD allow us to place many types of disclosures on a target page provided this page can be reached via one link on the trigger page. We nicknamed this rule "one click", but actually the standard is "a link" and could be triggered by a rollover, voice command, or some other means of activation.

So far as I know, there isn't and never has been a rule or guidance dealing with lengthy pages. Years ago, there were concerns that disclosures might not be compliant unless they were "above the fold" on web pages. That notion never got very far & would be totally foolish if applied to handheld devices.
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#2172890 - 04/10/18 09:14 PM Re: Can we use one-click rule for e-mail ad? Tarhe
David Dickinson Offline
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Quote:
I cannot find the source for the rule about not making the reader scroll several times to get way down to the bottom of the Website page to read the additional disclosures or terms and conditions.


Below are the 3 commentaries dealing with the "direct Link". Notice each says "clearly refer" or "clearly direct" and then "directly" and "where the ... information begins" or "a link that directly takes the consumer to the additional information." It's pretty clear to me that the link must go directly to the disclosures. You can take them to the web page and require them to scroll or page down to find the disclosures.

Here's the Commentary to §1026.24(e) #4:
4. Electronic advertisement. If an electronic advertisement (such as an advertisement appearing on an Internet Web site) contains the table or schedule permitted under §1026.24(e)(1), any statement of terms set forth in §1026.24(d)(1) appearing anywhere else in the advertisement must clearly direct the consumer to the location where the table or schedule begins. For example, a term triggering additional disclosures may be accompanied by a link that directly takes the consumer to the additional information.

Here's the Commentary to §1026.16(c)(1) #2:
2. Electronic advertisement. If an electronic advertisement (such as an advertisement appearing on an Internet Web site) contains the table or schedule permitted under §1026.16(c)(1), any statement of terms set forth in §1026.6 appearing anywhere else in the advertisement must clearly direct the consumer to the location where the table or schedule begins. For example, a term triggering additional disclosures may be accompanied by a link that directly takes the consumer to the additional information.

Here's the Commentary to §1030.8(a) #9:
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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#2172904 - 04/10/18 11:29 PM Re: Can we use one-click rule for e-mail ad? Tarhe
Richard Insley Offline
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Thanks for adding references, David. There might be some room for debate about the exact point where information begins, but it's foolish to weaken your position by cluttering things that can and should be clean and simple.
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#2173005 - 04/11/18 04:48 PM Re: Can we use one-click rule for e-mail ad? Tarhe
David Dickinson Offline
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Central City, NE
In the last sentence of my first paragraph, I stated:
You can take them to the web page and require them to scroll or page down to find the disclosures.

That should read "You CAN'T".

Richard said: There might be some room for debate about the exact point where information begins, but it's foolish to weaken your position by cluttering things that can and should be clean and simple.
I can debate anything, but I agree it's not worthy of trying to in this case. The words "must clearly direct" and "directly takes the consumer to" would be difficult to argue.
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