Marketing & Advertising Compliance, including UDAAP...

0 of 51 Marketing and Advertising

Carl Pry

May 24, 2016

A TTS Production

Marketing & Advertising Compliance,

including UDAAP Expectations

Carl Pry

May 24, 2016


Carl Pry

May 24, 2016 Advertising Basics

What is an “advertisement”?

Reg. DD: “a commercial message, in any medium and in virtually any form, that promotes

directly or indirectly the availability of a product

FDIC: “a commercial message, in any medium, that is designed to attract public attention

or patronage to a product or business”

All media is covered: radio, TV, print ads, Internet, etc.

The Internet is considered a print medium under the rules

Billboards and rate boards in branch lobbies are also considered ads

When the institution controls the content and/or pays for its publication, it must follow the

rules

• Rate sheets, or other publications over which the institution has no control are not advertisements

(i.e. rate tables in the Sunday paper)

UDAP/UDAAP: any communication with customers that communicates information

about products or services, in whatever form is subject to examination


Carl Pry

May 24, 2016 Latest Developments

FTC Enforcement Policy Statement Addressing “Native” Advertising

and Deceptively Formatted Advertisements (12/22/15)

https://www.ftc.gov/news-events/press-releases/2015/12/ftc-issues-enforcement-

policy-statement-addressing-native

Explains how consumer protection principles apply to different advertising

formats, including “native” ads that look like surrounding non-advertising content

• Promotional messages should be identifiable as advertisements – contains examples

• Has proximity and placement, prominence, and clarity guidance

• “Both what the ad says and the format it uses to convey that information will be

relevant. Any clarifying information necessary to prevent deception must be disclosed

clearly and prominently to overcome any misleading impression.”

General principles FTC considers in determining whether any particular ad

format is deceptive and violates the FTC Act


Carl Pry


CFPB guidance and bulletin about marketing services agreements

http://www.consumerfinance.gov/about-us/newsroom/cfpb-provides-guidance-

about-marketing-services-agreements/ (10/8/15)

RESPA Section 8 prohibition against kickbacks and unearned fees

• Applies in consumer mortgage loan environment

“[W]hile marketing services agreements are usually framed as payments for

advertising or promotional services, in some cases the payments are actually

disguised compensation for referrals. Any agreement that entails exchanging a

thing of value for referrals of settlement service business likely violates federal

law, regardless of whether a marketing services agreement is part of the

transaction.”

Examples provided:

• “CFPB found a title insurance company that entered into marketing services

agreements where the fees paid by the company were based in part on the number of

referrals it received, as well as the revenue generated by those referrals”

https://www.ftc.gov/news-events/press-releases/2015/12/ftc-issues-enforcement-policy-statement-addressing-native


















http://www.consumerfinance.gov/about-us/newsroom/cfpb-provides-guidance-about-marketing-services-agreements/

















Carl Pry


FTC annual financial acts

enforcement report to CFPB

(6/9/15)

https://www.ftc.gov/news-events/press-

releases/2015/06/ftc-staff-provides-annual-

financial-acts-enforcement-report

Details FTC’s enforcement, research,

rulemaking, and policy development

activities with Regs. E, M, and Z

Includes enforcement actions related to

non-mortgage credit

• Auto finance and payday lending,

mortgage loan advertising, and forensic

audit scams

Consumer and business outreach with

Reg. Z requirements


Carl Pry

May 24, 2016 Unfair or Deceptive Acts or

Practices (UDAP)

You may only advertise terms that are actually

available

No ad may be unfair or deceptive – §5 of the FTC Act

• Applies to all ad types – consumer and commercial

Be careful of your audience – who is likely to respond to

the ad?

• Vulnerable populations

https://www.ftc.gov/news-events/press-releases/2015/06/ftc-staff-provides-annual-financial-acts-enforcement-report





















Carl Pry

May 24, 2016 Unfair

What makes an advertisement “unfair”?

1. It causes or is likely to cause substantial injury

• “Injury” means monetary harm, but “substantial” doesn’t mean that much

– Small harm (misstatement of the rate or fees) to a large amount of people

– Look to how products are advertised – are they accurate?

2. That cannot be reasonably avoided, and

• Unavoidable when it interferes with a consumer’s ability to make a informed

decision

– Omissions of fees or rate practices

3. The injury is not outweighed by any benefit to the consumer

• “Outweighed” – net effect is to harm consumers; found in virtually all these

situations


Carl Pry

May 24, 2016

What makes a practice “deceptive”?

1. The practice misleads or is likely to mislead;

• “Likely to mislead” looks at what is said as well as what is not said

– Is the rate artificially low?

– Is the initial rate more prominent than it should be?

– Are adjustments left unsaid in the ad?

2. A reasonable consumer would be misled, and

• “Reasonable consumer” is the target audience for the ad

• Who is likely to apply?

3. The practice is material

• “Material” practice again means likely to affect a consumer’s choice

– This again is virtually everything

Deceptive


Carl Pry

May 24, 2016 UDAP + Abusive = UDAAP

Dodd-Frank added “abusive” to come up with UDAAP

Who does this standard apply to?

What makes a practice ”abusive”?

“Materially interferes with the ability of a consumer to understand

a term or condition of a consumer financial product or service”

“Takes unreasonable advantage of”:

• “A lack of understanding on the part of the consumer of the material risks,

costs, or conditions of the product or service”

• “The inability of the consumer to protect the interests of the consumer in

selecting or using a consumer financial product or service”

• “Reasonable reliance by the consumer on a covered person to act in the

interests of the consumer”


Carl Pry

May 24, 2016 ‘Unfairness’ in Other Regulations

Unfairness is already built into other rules

Especially related to advertising

• Reg. Z requires only “actually available terms” be offered:

“only those terms that actually are or will be arranged or

offered by the creditor” be stated

• Reg. DD prohibits “misleading or inaccurate advertisements,”

further stating that an advertisement “shall not misrepresent a

depository institution’s contract”

Reg. B, FHA, and fair lending

• If a practice unfairly targets or has a disparate impact

on members of a protected class, it may also be

considered unfair


Carl Pry

May 24, 2016 FTC UDAP Mortgage Rules

Bans deceptive mortgage ads

Bans material misrepresentations for all mortgages

Would allow FTC and the states to seek civil penalties against

violators

16 CFR 321: Lists examples of misrepresentations about fees,

costs, obligations, and others that would be violations

Does NOT cover banks, thrifts, federal credit unions, and

other entities that are outside FTC’s jurisdiction

But can serve as a basis for UDAP/UDAAP


Carl Pry

May 24, 2016 CFPB Enforcement Actions

Focus on “Practices” (the ‘P’ in UDAAP)

Sales and marketing practices

• “engaged in deceptive tactics to sell…products”

• “misled about the benefits”

• “deceived about the nature of the products”

• “misinformed about cost of the products”

Cancellation practices, marketers’ scripts, and sales

practices were the focus of the order, not the add-on

products themselves


Carl Pry

May 24, 2016 CFPB Enforcement Actions

Consent Orders to resolve allegations that vendors deceptively marketed ancillary

products

Such as payment protection and credit monitoring

Will refund approximately $140 million to roughly 2 million customers, and $25

million penalty

Recipients prohibited from selling and marketing certain ancillary products until

obtaining approval to do so

Also must take specific actions to enhance compliance with consumer financial laws

Consent order on how “free” checking accounts are marketed

“Free” isn’t really free

Consent orders concentrated on sales practices, not products or services

How scripting is maintained, responses, customer understanding

UDAAP focus is clear, focus on deception


Carl Pry

May 24, 2016 CFPB Expectations

CFPB Bulletin 2012-06

Expects supervised institutions and their vendors to offer ancillary products in

compliance with federal consumer financial laws

Reviews applicable federal law and outlines compliance program components

that CFPB expects supervised institutions to maintain

Cites “supervisory experience [that] indicates that some credit card

issuers have employed deceptive promotional practices when

marketing” these products

Failing to adequately disclose terms and conditions

Enrolling customers without their consent

Billing for services not performed


Carl Pry

May 24, 2016 Best Practice Recommendations

No customer communication should be

released without a fair lending, UDAAP,

and technical compliance review

Ad copy should be reviewed every time;

even if content does not change

Complaints may also prompt mid-stream

advertising reviews


Carl Pry

May 24, 2016 Deposit Advertising

Look to Truth in Savings/Reg. DD for consumer

deposit account advertising

For commercial accounts, follow UDAP principles

(TISA doesn’t apply)

The ad must fairly represent the terms of the

deposit contract offered

“Profit” cannot be used to characterize interest or

earnings on an account


Carl Pry


Be careful with use of the words “free” or “no cost”

If any maintenance or activity fee could be assessed

(under any circumstances), the account is not free

• Minimum balance, excessive transaction, service fees, etc.

• Check re-order fees, over-limit charges, NSF charges, and

dormancy fees are not activity fees and can be assessed on a

“free” account

• ATM, electronic services fees are not activity fees if account

could be obtained without services


Carl Pry


Be careful with use of the words “free” or “no cost”

A service may be advertised as free even if the account itself is not

free

• “Free ATM transactions,” for instance

Limited time “free” accounts are OK, too, as long as timeframe is

included in the ad

Advertising an account as “free” as long as conditions (not relating

to the deposit account, e.g. age) are met is OK

• Provided the conditions are disclosed in the ad


Carl Pry

May 24, 2016 Annual Percentage Yield

When an interest rate is advertised, the “annual percentage

yield” must also appear, using that term

The APY may be stated without the interest rate, however

The abbreviation “APY” may be used elsewhere in the ad as long

as it is spelled out at least once in the ad (may be in the small

print)

The numerical statement of the rate is the trigger

• “1% over normal rates” or “bonus rates available” do not trigger any

additional disclosure

• If stating the APY numerically, state it to 2 decimal places


Carl Pry

May 24, 2016 Annual Percentage Yield

When an interest rate is advertised, the “annual percentage

yield” must also appear, using that term

If stating both the interest rate and the APY, the interest rate

cannot be more conspicuous than the APY

• Why would it be? APY will (normally) be a higher number

• Internet: disclosing the interest rate with a link to the APY is not acceptable

– they must be visible on the same page

When advertising a tiered-rate (or stepped-rate) account, you

cannot just advertise the highest APY –include all

Tolerance: APYs disclosed with an accuracy of within .05 (plus or

minus)

• Intentional over-disclosure is still a violation, however


Carl Pry

May 24, 2016 Bonus

A “bonus” is something (cash, merchandise, etc.) given to a

customer in connection with opening or maintaining an

account

Having a value of over $10 (yearly calculation)

• Discounts coupons at stores or restaurants are not bonuses

Waiver of a fee or account expense is not a bonus

• Institution products don’t count

Bonus amount is not included in the APY calculation

Use of the word “bonus” when not meeting the definition in Reg.

DD is OK

• “Bonus rates on CDs” would be OK – does not trigger anything


Carl Pry

May 24, 2016 1099 Requirements

IRS considers most anything given to an accountholder

“interest” and therefore reportable on a 1099

Cash is always reportable (if over applicable 1099 threshold)

“de minimis premiums” exception: “non-cash inducement…to a

depositor to open or add to an account, that does not have a

value in excess of $10 for a deposit of less than $5,000 or $20

for a deposit of $5,000 or more”

Interest-bearing account: 1099-INT

$10 reporting threshold per depositor per year

Noninterest-bearing account or loan: 1099-MISC

$600 reporting threshold


Carl Pry

May 24, 2016

APY and bonus are triggering terms, meaning if either

appears in an ad, additional disclosures must also be made

in the ad

For broadcast media ads (meaning radio, TV, outdoor billboards,

telephone), disclose:

• The minimum balance (if any) to get that APY

– If it is a tiered rate account, the minimum for each tier must be

disclosed

• The term of the account for a time product (CD)

• If a bonus is offered, the APY and all applicable disclosures about the

APY must appear

– You cannot advertise a bonus by itself (without the APY)

Trigger Terms


Carl Pry

May 24, 2016

APY and bonus are triggering terms

For written ads (meaning newspaper, magazine, internet, brochures, etc.),

disclose:

• All requirements for broadcast media, plus:

• If the rate is variable, a statement that the rate may change after the account is

opened

• The timing of the APY offered (“offered until” or “offered as of”)

• The minimum opening deposit (if greater than the minimum to earn the stated APY)

• A statement that “fees could reduce the earnings on the account”(if this is the case)

• For a time account, statement that a penalty may or will be imposed for early

withdrawal

• If a bonus is offered, what is required to earn the bonus and when it will be provided

For Internet ads, triggered terms may appear in a link, provided that link is only

one click away

Trigger Terms


Carl Pry

May 24, 2016 Signs and Systems

Indoor signs are exempt from many of the deposit advertising rules

What is an indoor sign? A sign inside the premises of the depository institution

(regardless of whether or not it can be viewed from the outside)

• Rate boards, computer screens, etc.

• Signs posted outside the institution are not “on premises”

Required disclosures for indoor signs:

• Rates must be advertised as “APY”

– Interest rates may also be disclosed, but not alone

• If an APY is disclosed, a statement that the person should ask an employee for

more information about fees and terms

• If advertising a tiered-rate account, the lower dollar amount to get the listed tier

must be disclosed

• If a time account, the term


Carl Pry

May 24, 2016 Signs and Systems

Loan signs

Reg. Z has no such exceptions; signs must meet all Reg

Z requirements

Discretionary overdraft limits on automated

systems

If the dollar amount of such a limit is included in the

disclosed balance, the disclosure is considered to be an

“advertisement” promoting the payment of overdrafts

Additional disclosures (conditions, etc.) required


Carl Pry

May 24, 2016

“Member FDIC” must appear on certain advertisements

This is the FDIC’s “official advertising statement”

• Can use symbol or statement (variations)

This should appear in each ad for any insured deposit product

• Also if the ad mentions the institution’s name, but is not specific as to any product

– There are various exceptions to these rules (FDIC regulation: 12 CFR 328)

• It is permissible, though not necessary, for loan ads

It should NOT appear in ads for non-deposit investment products, like mutual

funds, annuities, etc.

NCUA rules regarding its sign and statement

Include it in all radio and TV ads, annual report, and size requirement for print

media

FDIC Signs and Statement


Carl Pry

May 24, 2016

When advertising non-deposit investment products, like mutual funds,

securities, and so forth, do NOT include the FDIC official advertising

statement or logo

Sales representatives should inform consumers (orally or in writing) that: "This product is not insured by the Federal Deposit Insurance Corporation"

"This product is not a deposit or other obligation of, or guaranteed by, the bank"

"This product is subject to investment risks, including possible loss of the principle

amount invested"

Provide 3 disclosures in “visual media”:

May also include: “Not a Deposit”; “Not Insured by Any Government Agency”

When advertising both insured and non-insured products, make sure proper

disclosures are made, and there is separation in the ad so there is no doubt

non-insured products are not insured

Non-Insured Investment Products

NOT FDIC- INSURED

May lose value No bank guarantee

http://www.fdic.gov/regulations/resources/signage/logo.html

http://www.ncua.gov/Default.aspx


Carl Pry

May 24, 2016

Banks are prohibited from holding or participating in “lotteries”

A “lottery” is where 3 or more people give money or credit for the possibility

that one or more of them (but not all of them) will get more than they contributed

The winner may be determined by

Any random selection, game, race, contest, etc.

The key is “giving money or credit” to get in

If there is no purchase required to qualify the contest, drawing, etc., then it is not

a “lottery” under the statute and you can do it

Financial institutions cannot

Deal in lottery tickets for others

Advertise or publicize another’s lottery or its winners

Allow use of its premises by others for a lottery purpose

Lotteries


Carl Pry

May 24, 2016 Equal Housing Lender

Equal Housing Lender statement/logo (the “house”)

Visual ads: Must appear in all dealing with residential lending

• No size requirement anymore – just must be legible

Internet ads: logo should appear on each page dealing with

residential lending products

Verbal ads: “equal housing lender” statement


Carl Pry

May 24, 2016 Fair Lending Considerations

Ads must not overtly discriminate (who would be

discouraged from applying by looking at your ad?)

Encourage everyone; discourage no one

For instance, watch the characteristics of the models in ads

– make sure they represent the makeup of your marketing

area

Ad programs are examined in their totality – does your

program tend to discriminate?

Be careful with jointly-sponsored ads

You could be seen as a co-conspirator in discriminatory

conduct


Carl Pry

May 24, 2016 Fair Lending Considerations

Geographic lending advertising

Is it OK to send different ads based on state, city, county, zip code,

etc.?

High-minority census tracts (HMCTs)

How about advertising for different ages?

Only age 62 or over may be targeted (older Americans)

Vulnerable classes (UDAAP)

Proxies for prohibited information

Are you really screening on a prohibited basis?


Carl Pry

May 24, 2016 What You CAN Do

Vary advertisements if there is a “legitimate business

justification”

What is this?

Vary on non-prohibited bases?

Special promotions are OK, as long as…

Offer rates or deals not everyone would get, as long as

enough would qualify

And conditions are clearly stated

Utilize segment marketing, as long as…


Carl Pry

May 24, 2016 Tax Deductibility

Don’t hold yourself out to be a tax expert or

advisor

Do you advertise that interest on home loans is tax-

deductible?

Especially on home equity loans where LTV could

exceed 100%, retirement account ads

“Consult your tax advisor” or similar language


Carl Pry

May 24, 2016 Reg. Z: Consumer Loan

Advertising – Closed End Credit

Reg. Z controls consumer loan ads – commercial: just comply with UDAP

principles

If you state an interest rate, you must also state the APR (reverse not true,

though)

When advertising a rate, “APR” is sufficient - don’t need to spell it out

What you must say in an ad depends on what you already do say in the ad:

Triggering Terms

If you say any of these:

• Downpayment information

(only in a credit sale*)

• Payment amount

• Number of payments or

repayment period

• Any finance charge amount

Triggered Terms

Then you must say all of these:

• Downpayment information

(only in a credit sale*)

• Terms of repayment (typical)

• APR (and if it is variable, that

fact)

* A credit sale is one in which the creditor is also the seller (selling repossessed property, for instance)


Carl Pry


Advertising – Closed End Credit

Numerical disclosures of the terms are what trigger

Or if you can figure out the number from the ad’s information

Notice what is not a triggering term: APR

But if you advertise an APR that may rise after consummation,

you must state that it is variable

You may also state the interest rate, but not more prominently than

the APR

For online ads, a link to triggered terms is acceptable (only

if they are one click away)

Many additional requirements for mortgage loans


Carl Pry


Advertising – Open End Credit

Again, what you must say in an ad depends on what you already do say in the ad:

Triggering Terms

If you say any of these:

• Finance charge or APR

• Any other charges

Triggered Terms

Then you must say all of these:

• Transaction or other activity charges

• APR (and the fact that it may vary, if it can)

• Any membership of other participation fee

Additional special rule for HELOCs

Triggering terms can be stated affirmatively or negatively (the absence of the term)

• “No Closing Costs Home Equity Lines During July!” - Triggers

Stating the absence of a triggering term nonetheless means you must include all triggered terms in

your ad

For all consumer loans covered by Reg. Z, the form of media doesn’t matter

Rate boards, online ads, etc. all must follow the same rules


Carl Pry

May 24, 2016 Privacy Rules

Normally, consumer financial information must be kept

private and not shared with outside parties for any purpose,

including marketing

Section 13 of Reg. P provides for an exception covering

joint marketing of financial products with others

This means a customer cannot opt out of this type of sharing

However, this sharing must be disclosed to customers in your

Privacy Notice disclosure

The institution must enter into a contract with the third party,

specifying that the third party not disclose the information to

others in an otherwise violation of Reg. P


Carl Pry

May 24, 2016 Privacy: Prohibition Against

Sharing Account Numbers

Reg P prohibits disclosure of account numbers or similar access

numbers/codes to nonaffiliated third party for marketing purposes

It is allowable to credit bureaus, however

There is a little different definition of “account number” here

It means a credit card or deposit account number

But it also covers any other “transaction account” number

• This is different than the standard definition you’re used to (such as a checking

account under Reg. CC, etc.)

• It means an account other than a deposit account or credit account from which a

third party could initiate charges

• Could someone steal money out of the account if they had the number?

– If so, then sharing it is prohibited


Carl Pry

May 24, 2016 FCRA: Sharing Information with

Affiliates

If you share consumer report information with third parties you must

provide the consumer with the ability to prevent the sharing (opt out)

Sharing consumer reports with an affiliate so the affiliate can make a

marketing solicitation

Includes transaction information

• If consumer has a business relationship with the affiliate, it’s excepted

The affiliate cannot do it unless the institution that has the information (you) discloses

to the consumer that their information may be shared with affiliates for such purposes,

and

The consumer is provided with an opportunity and a simple method to prohibit the

sharing (opt out)

• There may be different ways to opt out made available

• The opt out must be “clear, conspicuous, and concise” and “simple”

The opt out is effective for 5 years

At the end of 5 years, another opt out opportunity must be provided before solicitations

from sharing can occur


Carl Pry

May 24, 2016

This is the practice of obtaining a list of qualified prospects from a credit

bureau, or otherwise obtaining credit information before making the

solicitation

Criteria is submitted to the bureau, must be retained for 5 years

A “firm offer of credit” must be made to every name on the list

Verifications can be made to ensure that the prospect still meets the criteria

The offers can vary among people on the list – they don’t have to be equal

Preapproved offers must include additional disclosures:

Information from the consumer’s credit file was used in the solicitation

The consumer meets the criteria for the product offered

The consumer has the right to prohibit future solicitations

Procedures to exclude the consumer’s name from such lists

FCRA: Prescreening


Carl Pry

May 24, 2016 Prescreening Disclosures

“Layered” approach to required notice (2 separate disclosures)

Short form notice is used on the first page of the “principal promotional

document” (near the main promotional message for electronic solicitations)

• This is the cover letter, or document or screen meant to be seen first

• Just the opt-out right, toll-free number, and a reference to the long form notice

• Must be distinct text (different style from the main one) and larger than the

principal text on the page, and no smaller than 12-point type (relative prominence

standard for electronic solicitations)

Long form notice contains all the details, and is separated from other

information on the solicitation

• No smaller than principal text on page, no smaller than 8-point

Opt-out is good for 5 years


Carl Pry

May 24, 2016

Short form notice – on principal page of solicitation

Sample Language for Prescreenings

Long form

notice contained within

the body of the

solicitation itself

Required notice


Carl Pry

May 24, 2016

FTC Free Credit Reports Rule requires prominent

disclosures in advertisements for “free credit reports”

Ads offering free credit reports must include a disclosure, across

the top of each page that mentions free credit reports, which states:

THIS NOTICE IS REQUIRED BY LAW. Read more at FTC.GOV.

You have the right to a free credit report from AnnualCreditReport.com

or 877-322-8228, the ONLY authorized source under federal law.

Website disclosure must include a clickable button to

“Take me to the authorized source” and clickable links to

AnnualCreditReport.com and FTC.GOV

Offering “Free Credit Reports”


Carl Pry

May 24, 2016

FTC’s Guides Concerning the Use and Endorsements and

Testimonials in Advertising covers:

“Any advertising message…that consumers are likely to believe

reflects the opinions, beliefs, findings, or experiences of a party

other than the sponsoring advertiser, even if the views expressed

by that party are identical to those of the sponsoring advertiser”

Standards to be met:

“Material connections” must be disclosed

Testimonials must be truthful

Expert endorsers must actually be qualified

False or misleading claims = UDAP

Testimonials


Carl Pry

May 24, 2016

There are 3 aspects to this: FTC Do-Not-Call rules, company-specific

rules, and state laws

FTC Do-Not-Call rules (from the Telephone Consumer Protection

Act, or TCPA)

After a personal phone number (including cell phone numbers) is registered

with FTC, you cannot call that number for solicitations unless it is covered by

an exception

• Companies with a present relationship are exempt for 18 months since last

transaction with it (3 months if an inquiry or application has been made)

• If the consumer has expressly consented to calls

Numbers remain on the list indefinitely

You must check the list every 3 months for additions and changes

Do-Not-Call Rules


Carl Pry

May 24, 2016

Company-specific rules

If a consumer specifically asks the company not to call anymore,

no solicitation calls may then be made

• Keep your own Do-Not-Call list in addition to checking the FTC’s list

State Do-Not-Call rules

Most are similar to FTC’s, but be sure to check

FTC has called for comments on possible changes to the

caller ID provisions of the TSR

Strengthen the rule?

Do-Not-Call Rules


Carl Pry

May 24, 2016

Controlling the Assault of Non-Solicited Pornography And

Marketing Act of 2003 (CAN-SPAM)

This applies to you if you send out electronic messages to either customers or

prospective customers to sell your products or services

• These are “commercial electronic mail messages,” whose primary purpose is to sell

product or service

• “Transactional or relationship messages” are exempt – these facilitate, complete, or

confirm a transaction the customer has requested, or contains needed information

regarding such a transaction; they can also deal with an account or relationship with

the customer

Unsolicited messages must meet certain standards

They cannot contain false or misleading information (including in the header)

They must contain a means to reply (a return address) for means of opting out

of future messages

E-Mail: CAN-SPAM Act


Carl Pry

May 24, 2016 Junk Fax Prevention Act

Similar to Do-Not-Call Rules and CAN-SPAM

Prevents “unsolicited advertisements” via fax unless there is an

established business relationship (EBR)

When there is an EBR, the person sending the fax must obtain the fax number

directly from the recipient or otherwise ensure that the recipient voluntarily

agrees to the make the number available for public distribution

• Voluntary agreement that faxes to that number are acceptable

• Could appear in a directory for public consumption

The send must provide a clear and conspicuous notice and contact information

on the first page of the fax

• This allows the recipient to opt out of future fax transmissions

• Senders must honor opt out requests within 30 days


Carl Pry

May 24, 2016 Online Marketing: COPPA

Children’s Online Privacy Protection Act (COPPA);

applies when:

Web site or online service (games, activities, etc.) directed to

children under 13 and collects personal information from

children; or

Site is directed to general audiences and have knowledge that site

collects personal information from children

Must post “clear and prominent” link to information

practices notice on bank’s home page and at each place

where collecting personal information from children

Larger font size or a different color type on a contrasting

background could be used


Carl Pry

May 24, 2016 Online Marketing: COPPA

Notice requirements:

Must be clearly written and understandable

Include the name, address, telephone number, and email address of the

collector

Types of information collected and how collected

How information is used

Whether information is disclosed to third parties

Procedures where parent can review the child's information, ask to have it

deleted and refuse to allow further collection

Verifiable consent from the child's parent must be obtained before

information can be collected, used or disclosed

Reasonable effort must be made to ensure a parent receives the information

practices notice and consents to it


Carl Pry

May 24, 2016 Contact Information

Upcoming Webinars

• Current Expected Credit Losses (CECL): How to

Calculate and Maintain a Proper Allowance – May 25

• Loan Participations: What You Should Know – May

26

• Compliance Perspectives: A Monthly Update – May

26

• The Carrot and the Stick: Incentive and Motivation in

the Workplace – May 26

• What to Do When a Customer Dies – June 2

• Game Plan to Pass Your Next Fair Lending Exam –

Ten Steps for Success – June 2

• Basic Underwriting – June 7

• BSA Series: 10 Examination Hot Spots – June 7

• Excel Explained: Pivot Tables – June 8

• Regulation CC - Check Holds – June 8

• Dealing with Subpoenas, Summonses, Garnishments,

Tax Levies, Etc. – June 9

Compliance Questions:

Carl Pry

Treliant Risk Advisors

[email protected]

Webinar/Registration Questions:

Mark Bennett

Total Training Solutions

PO Box 310

Waunakee, WI 53597

1-800-831-0678

www.BankWebinars.com

[email protected]

Date post:	09-Aug-2020
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