How to Navigate Digital Advertising Compliance Challenges

Over the years, digital advertising has grown and so have compliance challenges.

Many regulations have not been modernized to reflect the digital era. While others, like those from the FDIC, have updated the rules to align how people transact today. Additionally, indications are that examiners are looking closer at these digital channels. In this article, we'll provide practical examples and share insights to help you effectively navigate the compliance in these situations.

Digital Display and Search Engine Marketing (SEM) Advertising

Limited space in digital display advertisements, or social posts, and the character restrictions that come with search engine marketing (SEM) ads, can make it tricky to promote some products.

Below are three advertisements we created for demonstration purposes (based on real life ads). Put your compliance cap on and see if you can spot the issue(s) with each example.

Example #1: Tiered Checking Account | To Earn Rate Must Meet Qualifications

Example #2: Home Equity Line of Credit | No Closing Costs and No Annual Fee

 

What sticks out to you?

Issue #1: We still run across people who do not know what a HELOC is. We recommend spelling out Home Equity Line of Credit. You can include (HELOC) after you spell it out the first time.

Issue #2: Stating “no closing costs and no annual fee” triggers additional disclosure on a HELOC. Which means, this ad needs a call-to-action such as “Learn More” or “Get Details.” The details/disclosure needs to be one click away. The disclosure should be visible on the linked page.

Additional Insights:

• Notice the “house” symbol, it is too small. This would not be compliant, as it is not legible and is missing Equal Housing Lender under the “house.” (Note: Banks regulated by the Office of the Comptroller of the Currency, OCC, are not required to use the “house.” They can simply use the words “Equal Housing Lender,” but it must be legible. Some state credit unions use Equal Housing Opportunity.)
• QR codes cannot be used for one click away. Also, avoid using a QR code on a digital ad or website — they are already on their phone or computer.

Example #3: Search Engine Marketing (SEM) | Checking Ad

What do you see here?

Issue #1: SEM ads have limited characters which can make it difficult to fit Member FDIC (or Equal Housing). We recommend to “pin” it as a headline as shown above.

Additional Insights:

• Avoid using words that trigger additional disclosures (e.g. a deposit rate, a bonus reward for opening an account, the APR for an open-ended line of credit, etc.).
• Keep in mind some disclosures must be in close proximity and equal prominence. In that case, you may need to make your copy more general, so you don’t trigger the disclosures.

Do you have questions about this topic or other compliance-related items?