"Click here" link...

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Question:

If we advertise a deposit rate on our website and include a "click here" link for the required Reg DD disclosures, would this be permissible? Or is it an absolute requirement to have the required disclosures appear alongside the rate?

Answer:

Regulation DD (Truth in Savings Act) allows what I call "1 click away" disclosures [refer to the Commentary to section 230.8(a)#9] which states:

9. Electronic advertising. If an advertisement using electronic communication 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.

Also, the Commentary to 230.8(b)#4 states:
4. Electronic communication. An interest rate may be stated only if it is provided in conjunction with, but not more conspicuously than, the Annual Percentage Yield to which it relates. In an advertisement using electronic communication, the consumer must be able to view both rates simultaneously. This requirement is not satisfied if the consumer can view the Annual Percentage Yield only by use of a link that connects the consumer to information appearing at another location.

Further, the Commentary to 230.8(e)(1)(i) states:
1. Internet advertisements. The exemption for advertisements made through broadcast or electronic media does not extend to advertisements made by electronic communication, such as advertisements posted on the Internet or sent by e-mail.

This last comment clarifies you must still provide full disclosure for internet advertisement; however, the other sections indicate they can be located on a sub-page.

First published on BankersOnline.com 11/26/07