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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
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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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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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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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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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#2276563 - 10/11/22 10:04 PM Re: Internet advertising Reg Z / Reg DD David Dickinson
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Originally Posted by David Dickinson
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.

Not that it really matters as far as being examined because Regulators pretty much never dive that deep into advertising requirements, but I actually disagree on the APY part. I believe it needs to appear in the actual ad.

the Regulation itself states:

(b) Permissible rates. If an advertisement states a rate of return, it shall state the rate as an “annual percentage yield” using that term. (The abbreviation “APY” may be used provided the term “annual percentage yield” is stated at least once in the advertisement.)

So, it has to be "in" the advertisement. Furthermore, the part of the OI that allows for the one-click rule states:

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. Using the full phrase "Annual Percentage Yield" is not one of the triggered terms. It exists as a separate requirement. The triggered terms for non-CD accounts, as you are well aware, are:

(1) Variable rates. For variable-rate accounts, a statement that the rate may change after the account is opened.

(2) Time annual percentage yield is offered. The period of time the annual percentage yield will be offered, or a statement that the annual percentage yield is accurate as of a specified date.

(3) Minimum balance. The minimum balance required to obtain the advertised annual percentage yield. For tiered-rate accounts, the minimum balance required for each tier shall be stated in close proximity and with equal prominence to the applicable annual percentage yield.

(4) Minimum opening deposit. The minimum deposit required to open the account, if it is greater than the minimum balance necessary to obtain the advertised annual percentage yield.

(5) Effect of fees. A statement that fees could reduce the earnings on the account.

I agree on the tier disclosures.

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#2276565 - 10/11/22 11:09 PM Re: Internet advertising Reg Z / Reg DD Cracked Egg
rainman Offline
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I'm not following that logic. You're saying that the full term "annual percentage yield" can't go in the "1-click away" disclosures because the regulation says that the full term must be included "in the advertisement."

But the regulation says the same thing about the [other] "triggered disclosures":

"if the annual percentage yield is stated in an advertisement, THE ADVERTISEMENT shall state the following information . . ."

If the "triggered disclosures" can be 1 click away, even though they have to be in the advertisement, why can't the full term "annual percentage yield" also be 1 click away?
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#2276609 - 10/12/22 07:56 PM Re: Internet advertising Reg Z / Reg DD Cracked Egg
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Because it's not a triggered term; therefore, it is not specified as being permissible in being one-click away. Similar to how "Member FDIC" cannot be one-click away. I can see an argument for being one-click away for sure for the full phrase. But, strictly adhering to the Regulatory language, it doesn't seem to be allowed.

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#2276610 - 10/12/22 08:19 PM Re: Internet advertising Reg Z / Reg DD Compliance NABW
Adam Witmer Offline
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Originally Posted by Compliance NABW
Because it's not a triggered term; therefore, it is not specified as being permissible in being one-click away. Similar to how "Member FDIC" cannot be one-click away. I can see an argument for being one-click away for sure for the full phrase. But, strictly adhering to the Regulatory language, it doesn't seem to be allowed.

If the disclosures that are 1-click away are required to be part of the ad, then isn't the 1-click away location actually still part of the ad? In other words, isn't it a 2 page ad?

I just don't think the single page logic holds up when you clearly have permission to extend the ad to a second page (1-click). All the information is required to be in the ad and nowhere in the regulation does it state that the ad can only be a single page. Its all part of the ad.
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#2276829 - 10/19/22 08:54 PM Re: Internet advertising Reg Z / Reg DD Cracked Egg
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@ Adam - Yeah, it's hard to say for sure. I can just say that, similarly, TILA allows for one-click away as well, but certain things cannot be one click away, such as when you have an Intro rate displayed and the time period and ongoing rate have to be in close proximity.

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#2285602 - 06/15/23 04:29 PM Re: Internet advertising Reg Z / Reg DD Adam Witmer
ccman Offline
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So just to be clear on the one click, if we run a CD ad with APY on Mega(formerly facebood) and Google will the one click apply.

Thanks.
Last edited by ccman; 06/15/23 05:18 PM.
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