Reg DD - Internet Ad

Question:

I am fairly new to the deposit compliance arena. Under the advertising section of Reg DD, there are exemptions for certain types of media (<a href="http://www.bankersonline.com/regs/230/230-8.html">230.8(e)</a>). One of these exemptions is broadcast or electronic media, such as television or radio. Would an advertisement on our bank's website be categorized as electronic media, and thus exempt from certain disclosure requirements, or would it be considered just like print media and thus be subject to all requirements of <a href="http://www.bankersonline.com/regs/230/230-8.html">230.8(c)</a>? I think that it should be treated just like print media, but I am having a difficult time finding any regulatory guidance to either confirm or refute this.

Answer:

Unfortunately, no. The internet is to be seen as a newspaper advertisement. I can print it out or stare at it for as long as I want; therefore, you don't get the exemptions that are granted for the "quick" media.

Here's how we address this in our Advanced Deposit Operations Manual:The disclosure exemptions for electronic media under various regulations do not address messages made through an institution’s web site or other on-line banking systems. Therefore, electronic media advertisements must fully comply with the advertising disclosure requirements as if the advertisement was printed in a newspaper.

The Federal Financial Institutions Examination Council (FFIEC) has issued Guidance on Electronic Financial Services and Consumer Compliance, which provides additional information on disclosures in an electronic environment.

First published on BankersOnline.com 3/17/08