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Advertising Exemption Under Section 230.8

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Question: 
My bank would like to extend a bonus to a new consumer checking account customer at the end of 90 days, provided the account is in good standing. From a radio spot advertising perspective, could someone explain to me the differences between (d)(2) and (d)(5) when it comes to exemption provided in section (3)? I find nothing in the regulation itself or the OSC that provides me with any guidance.Section 230.8 (d) Bonuses. Except as provided in paragraph (e) of this section, if a bonus is stated in an advertisement, the advertisement shall state the following information, to the extent applicable, clearly and conspicuously: 1) The “annual percentage yield,'' using that term;2) The time requirement to obtain the bonus; 3) The minimum balance required to obtain the bonus; 4) The minimum balance required to open the account, if it is greater than the minimum balance necessary to obtain the bonus; and 5) When the bonus will be provided. (e) 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: (i) Broadcast or electronic media, such as television or radio;(ii) Outdoor media, such as billboards; or(iii) Telephone response machines.
Answer: 

Suppose that your plan is to pay a bonus 30 days after the qualification period has elapsed. (d)(2) would be "account must be in good standing for 90 days" and (d)(5) would be "Bonus will be paid 30 days after qualification." Or you can combine them into "Bonus will be paid within 30 days your account has been in good standing for 90 days." The 30 day period is to give you time to verify qualification, create your disbursement list, and make the disbursements.

First published on BankersOnline.com 7/13/09

First published on 07/13/2009

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