Here is one for you. I know, generally, business member organizations are prohibited in enhanced underwriting; however, is "member FDIC" allowed?
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- Thread starter butlerguy03
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One of the tests applied to copy is "there must be NO call-to-action"
What "call to action" is there in proclaiming: Member FDIC ?
Open a savings account today and receive free S&H Green Stamps would be a call to action.
If you will open an account before the end of the month, we will deposit a free $20 in the account for you.... that would be a call to action.
We are located on Main street between the Broadway Hotel and the Railroad Station does not strike me as a call to action.
I don't know that the following copy qualifies as prudent copy but I suspect it would not violate the FCC rules.
This program is brought to you in part by Peoples Bank.... serving this community since 1926. Our employees have been trained to give you a sense of confidence when it comes to providing banking services. Member FDIC and member of the Hometown Chamber of Commerce.
What "call to action" is there in proclaiming: Member FDIC ?
Open a savings account today and receive free S&H Green Stamps would be a call to action.
If you will open an account before the end of the month, we will deposit a free $20 in the account for you.... that would be a call to action.
We are located on Main street between the Broadway Hotel and the Railroad Station does not strike me as a call to action.
I don't know that the following copy qualifies as prudent copy but I suspect it would not violate the FCC rules.
This program is brought to you in part by Peoples Bank.... serving this community since 1926. Our employees have been trained to give you a sense of confidence when it comes to providing banking services. Member FDIC and member of the Hometown Chamber of Commerce.
Well, IANAL but I would consider "Member FDIC" to be questionable. It's inherently promotional since it rather strongly implies that a given bank is "better" because it's a FDIC member than a bank that is not. And as we all know, there is a blanket prohibition against promotional language in underwriting.
OTOH, it is a factual statement. And there is no call to action, nor any price information. So two of the big-three-no-no's are met. But it could be said to be an inducement to buy/sell/lease...although since being a FDIC Member is typically a permanent thing...and not a temporary thing like a sale is...the third big no-no is sorta 50-50 here.
Also worth noting, there may be specific rules for banks when they advertise that they have to say if they're FDIC members or not. Again, IANAL but that may or may not influence FCC policy on advertising.
OTOH, it is a factual statement. And there is no call to action, nor any price information. So two of the big-three-no-no's are met. But it could be said to be an inducement to buy/sell/lease...although since being a FDIC Member is typically a permanent thing...and not a temporary thing like a sale is...the third big no-no is sorta 50-50 here.
Also worth noting, there may be specific rules for banks when they advertise that they have to say if they're FDIC members or not. Again, IANAL but that may or may not influence FCC policy on advertising.
aaronread said:
I'm also not a lawyer, but since being a member of the FDIC is sort of a government "seal of approval", I don't think it would be considered promotional. That's almost like a medical practitioner informing everyone that he is "board certified". Being a member of the FDIC is almost a minimum requirement to even be be a bank. As a point of information, it's like saying "We're a bank, not a finance company". The same holds true for saying "Member FSLIC" for a Savings and Loan (which isn't quite the same as a bank).
FDIC member banks are required by regulations to include "Member FDIC" in any advertising of 30 seconds or more.
http://www.fdic.gov/regulations/laws/rules/2000-5200.html
If you sell a :30 underwriting spot to a bank, I would include it. If the Commission comes after you, point out the federal law cited above.
To me, this clearly means that "member FDIC" is acceptable. "Member Anytown Chamber of Commerce" is questionable.
http://www.fdic.gov/regulations/laws/rules/2000-5200.html
If you sell a :30 underwriting spot to a bank, I would include it. If the Commission comes after you, point out the federal law cited above.
To me, this clearly means that "member FDIC" is acceptable. "Member Anytown Chamber of Commerce" is questionable.
Again, IANAL, but the rule (328.3)(a) says "Advertisement defined. The term "advertisement," as used in this part, shall mean a commercial message, in any medium, that is designed to attract public attention or patronage to a product or business." (emphasis added) Rather by definition, an underwriting message is non-commercial, so presumably the rule doesn't apply. Of course, making assumptions when the rules are from two different federal agencies is always dicey.
Underwriting may be non-commercial in nature by the FCC's definition, but ask your underwriting clients. "Does your relationship with WLMO affect your business?" If the answer is yes, then it is commercial in my mind.
I agree with aaronread, that fishing out the "proper" integration of the two guidelines is difficult, but my inclination is to use the FDIC guidelines in this specific case.
I agree with aaronread, that fishing out the "proper" integration of the two guidelines is difficult, but my inclination is to use the FDIC guidelines in this specific case.
Thanks for all the information! I think we are going to go with including it.
Sometimes the smallest questions turn into a big debate. This is one of those gray areas that the commission should define.
Sometimes the smallest questions turn into a big debate. This is one of those gray areas that the commission should define.
If you are a bank you must meet the minimum federal regulations to be a bank. To be a bank the deposits made by your customers are guaranteed by the FDIC. A bank MUST say they are a member of FDIC in advertising. And, might I add, "Equal Housing Lender".
Let's put this in perspective: is it promotional or a call to action to say "Equal Opportunity Employer"? A company HAS to put this in any promotion of a job opening. Member FDIC and Equal Opportunity Employer are identical to you saying K??? or W???, Any City, licensed by the FCC.
In short, these are senseless words that have to be added and have no real meaning to the listener. Trust me, banks don't have little plaques on their wall saying "Member in Good Standing in the FDIC". This ain't no club!
By the way, we ran a underwriting spot that ended by saying "Member FDIC and our community". Perfectly fine and factual.
Let's put this in perspective: is it promotional or a call to action to say "Equal Opportunity Employer"? A company HAS to put this in any promotion of a job opening. Member FDIC and Equal Opportunity Employer are identical to you saying K??? or W???, Any City, licensed by the FCC.
In short, these are senseless words that have to be added and have no real meaning to the listener. Trust me, banks don't have little plaques on their wall saying "Member in Good Standing in the FDIC". This ain't no club!
By the way, we ran a underwriting spot that ended by saying "Member FDIC and our community". Perfectly fine and factual.
One of the cases often cited by enforcement is : buffet case. Station promoted a "buffet." Staff interpreted that buffet meant "all you can eat for a price," and fined the station.
Requirements that banks mention FDIC is well settled. MANY non coms have banks that use this term in their 30 second underwriting.
Keep it at 30 seconds, no jingle, don't mention free savings account. You should be good. I am not a lawyer and this comment is purely superficial and opinion in nature. Call 3 DC Lawyers and get 3 answers.
Requirements that banks mention FDIC is well settled. MANY non coms have banks that use this term in their 30 second underwriting.
Keep it at 30 seconds, no jingle, don't mention free savings account. You should be good. I am not a lawyer and this comment is purely superficial and opinion in nature. Call 3 DC Lawyers and get 3 answers.
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