QUESTION
We
are going to send out a multipage advertisement that catalogs our many services.
It will be in print and electronic versions. Is this form of advertising a
single advertisement?
ANSWER
This
is a relatively common form of advertising among financial institutions.
If
a catalog or other multipage advertisement, or electronic advertisement (such
as an advertisement appearing on an Internet website), that contains a trigger
term gives information in a table or schedule in sufficient detail to permit
determination of the required advertising disclosures, it will be considered a
single advertisement if the table or schedule is clearly and conspicuously set
forth and any statement of trigger terms appearing anywhere throughout the
advertisement clearly refers to the page or location where the table or schedule
begins. [12 CFR § 226.16(c)(1); 12 CFR Supplement I to part 226 – Official Staff
Commentary § 226.16(c)(1)-1]
Therefore,
any statement of the finance charge or any other term that must appear in the
account opening disclosures (as set forth in Regulation Z, section 226.6)
appearing anywhere in the advertisement must clearly refer to the page or
location where the table or schedule begins. [12 CFR § 226.16(c)(1)]
As
an example, for an online advertisement, any statement of the finance charge or
any other term that must appear in the account opening disclosures (as set
forth in Regulation Z, section 226.6) that appears anywhere in the advertisement
could be accompanied by a link that takes the consumer to the table or schedule
containing the additional information. [12 CFR Supplement I to part 226 –
Official Staff Commentary § 226.16(c)(1)-2]
Jonathan Foxx
Managing Director
Lenders Compliance Group
