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#684999 - 02/12/07 03:13 PM Advertising Buttons
Complywithregs Offline
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Complywithregs
Joined: Apr 2006
Posts: 76
Kansas City, MO
We are going to have our employees where buttons on their clothes that had the APY for a deposit account. Does the Member FDIC need to be on this button? Opinions while I go to the web and research?

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Operations Compliance
#685015 - 02/12/07 03:30 PM Re: Advertising Buttons Complywithregs
Complywithregs Offline
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Complywithregs
Joined: Apr 2006
Posts: 76
Kansas City, MO
In an FDIC final ruling in Federal Register Volume 71, No. 218 Page 66100.
An advertisement promotes "non-specific" banking products and services if it includes the name of an insured institution, but, does not list or describe particular products or services offered by the institution.
I'm thinking that putting the name of the account under the APY that we are being specific.

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#685079 - 02/12/07 04:17 PM Re: Advertising Buttons Complywithregs
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,765
Central City, NE
Yes, this is an advertisement. In fact, this would be a promotion of a specific product, so I'm not sure how the "non-specific" banking product and services info. you describe in the above post is relevant.

I also don't know how you could possibly get all of the triggered disclosures (minimum balance, effective date, early withdrawal penalty) on the button and make it "clear and conspicuous". Refer to §230.3(a) concerning "clear and conspicuous" requirements and §230.8(c) for info on triggered disclosures.
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David Dickinson
http://www.bankerscompliance.com

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#685103 - 02/12/07 04:31 PM Re: Advertising Buttons David Dickinson
Complywithregs Offline
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Complywithregs
Joined: Apr 2006
Posts: 76
Kansas City, MO
We are going to put "Ask Me About".... somewhere on the button which we think would exempt us from the other disclosures. We just need to find out how and where they will be wearing those buttons. Thanks David.

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#685714 - 02/13/07 04:03 AM Re: Advertising Buttons Complywithregs
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,765
Central City, NE
If I'm following the logic here, you're saying the buttons fall under the "Indoor Sign" exemption (like a lobby rate board)? If so, you can say "APY" but you'll need to include "Member FDIC"
and "see an employee for further information". You're going to get all of that on a button and make it clear and conspicuous?

Must be some pretty good size buttons.
_________________________
David Dickinson
http://www.bankerscompliance.com

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