which statement is false regarding advertisingsales compensation surveys
Comments may be hand delivered to the guard station at the rear of the 550 17th Street NW building (located on F Street NW) on business days between 7 a.m. and 5 p.m. (1,110 + 3,163 + 120,070 + 20,213 = 144,556) 2019 County Business Patterns. Thus, FDIC estimates 3,080 annual respondents for IC 4, 107 annual respondents for IC 5 and 3,187 annual respondents for IC 7. The proposed rule would also require the clear, conspicuous, and consistent use of the official FDIC sign and symbol in both physical and digital locations. Proposed 328.3 would impose PRA third-party disclosure burden governing signage within the premises of insured depository institutions. IDIs would have the option to display the official sign in locations on the premises other than those required under the rule, except for in areas where non-deposit products are offered. and believes that part 328 should be amended to make clear that representations concerning crypto-assets fall within its scope. Data on this burden are unavailable. 8. The law requires that all risks be communicated. These are a number of ways in which an ad may violate the law. The FDIC believes that where parties make statements regarding the application of pass-through deposit insurance, additional disclosure is necessary to ensure that consumers are aware of this risk. John Newman & Amy Ritchie, Bureau of Competition, Staff in the Bureau of Competition & Office of Technology, Competition and Consumer Protection Guidance Documents, Contract Terms That Impede Competition Investigations, Generative AI Raises Competition Concerns, Statement of FTC Chair Lina M. Khan on Announcement of Nominees to the Federal Trade Commission, Protecting Consumers from Fraud and Deception, Environmentally Friendly Products: FTCs Green Guides, The FTCs Endorsement Guides: Being Up-Front With Consumers, What Shoppers Need to Know About Gift Cards, The FTCs Funeral Rule: Helping Consumers Make Informed Decisions During Difficult Times. See We have different ways to enforce the laws that apply to advertisements for prescription drugs. The proposed sign requirements are also intended to more clearly distinguish insured deposits from non-deposit products, and to better distinguish IDIs from non-banks in the digital space. The fact that the person did not know that the information was false is irrelevant. Proposed 328.3 would impose PRA third-party disclosure burden governing signage within the premises of insured depository institutions. [37], The costs of complying with the proposed rule's requirements for digital deposit-taking channels would also depend on the complexities of each IDI's digital deposit-taking operations. Sometimes we take additional enforcement action. The SBA defines a small banking organization as having $750 million or less in assets, where an organization's assets are determined by averaging the assets reported on its four quarterly financial statements for the preceding year. See 13 CFR 121.201 (as amended by 87 FR 18627, effective May 2, 2022). The site is secure. When the Federal Trade Commission finds a case of fraud perpetrated on consumers, the agency files actions in federal district court for immediate and permanent orders to stop scams; prevent fraudsters from perpetrating scams in the future; freeze their assets; and get compensation for victims.When consumers see or hear an advertisement, whether its on the Internet, radio or television, or anywhere else, federal law says that ad must be truthful, not misleading, and, when appropriate, backed by scientific evidence. Display of the digital sign at the footer of the relevant page or a similar location would not satisfy the clear and conspicuous standard. The proliferation of relationships and disclosures may confuse consumers as to whether they are dealing with an IDI, whether their funds are insured by the FDIC, and the risks they are protected against. The FDIC views these pages as environments where the customer may interact directly with the IDI, rather than as advertisements as defined in the rule's advertising statement requirements.21 When such an instance is made public,[46] 328.102(b)(5) (Third-Party Disclosure; Mandatory). The FTC also monitors and writes reports about ad industry practices regarding the marketing of alcohol and tobacco. 1813( For purposes of PRA, the FDIC would split the burden into two information collection categories: one for banks with less than $10 billion in total consolidated assets (assets) and one for banks with at least $10 billion in assets. However, not all of these firms enter into agreements with IDIs or otherwise engage in operations related to insured deposits; FDIC staff believe that the number of non-bank entities engaged in such operations would be considerably less than the number of IDIs. The FDIC recognizes that IDIs may not as easily display the official FDIC sign, described above, on websites and application pages and is therefore proposing to require a digital sign that would be an abbreviated version of the official sign. Deposits received at teller windows or stations. Does the FDA require drug companies to use hard-to-understand medical language in ads directed to consumers? This burden is associated with the display of signage for deposit and non-deposit products. How can I learn more about a medical condition or a drug? The FDIC may post only a single representative example of identical or substantially identical comments, and in such cases will generally identify the number of identical or substantially identical comments represented by the posted example. (2) With respect to the proposed rule's non-deposit signage requirements, are there better alternative methods by which IDIs might help consumers distinguish insured deposits from non-deposit products? Summary of Estimated Annual Burden According to recent Call Reports, IDIs with assets less than $10 billion operate approximately 7 branches each, on average, while IDIs with assets of at least $10 billion have approximately 282 branches each, on average. mobile o) of the Federal Deposit Insurance Act, 12 U.S.C. websites and mobile applications) is capable of implementing the proposed sign and advertisement statement requirements across all digital deposit-taking channels. means any product that is not a deposit, including, but not limited to: stocks, bonds, government and municipal securities, mutual funds, annuities (fixed and variable), life insurance policies (whole and variable), savings bonds, and crypto-assets. The following types of advertisements do not require use of the official advertising statement: (1) Statements of condition and reports of condition of an insured depository institution which are required to be published by State or Federal law; (2) Insured depository institution supplies such as stationery (except when used for circular letters), envelopes, deposit slips, checks, drafts, signature cards, deposit passbooks, certificates of deposit, etc. Finally, all IDIs must update their policies and procedures to comply with the proposed rule. Hybrid Product Before sharing sensitive information, make sure you're on a federal government site. However, the criminal nature of the sanction, the inclusion of requirements of intent, materiality, and other restrictive elements, and the failure to provide administrative machinery, for enforcement severely limited the effectiveness of these statutes in suppressing false or misleading advertising. Proposed 328.4 and 328.5 would impose PRA third-party disclosure burden governing signs for ATMs as well as digital deposit-taking channels. If the symbol of the Corporation is used as the official advertising statement, and the symbol must be reduced to such proportions that the two lines of smaller type above and below FDIC are indistinct and illegible, those lines of smaller type may be blocked out or dropped. Newly insured institutions. has the same meaning as set forth under 328.1. [FR Doc. See12 CFR 328.2. If insured deposits are usually and normally received in areas of the premises other than teller windows or stations, the insured depository institution must display the official sign in one or more locations in a manner that ensures a copy of the official sign is large enough so as to be legible from anywhere in those areas. The costs of the proposed rule would be incurred by IDIs, as well as some non-bank entities that may need to update disclosures or marketing materials. If not, how could the regulation be stated more clearly? For purposes of this ICR, the FDIC assumes that each IDI, on average, would spend approximately 80 hours in the first year to establish and/or implement policies and approximately 12 hours in each subsequent year to revise and update these documents. subpart A to 12 CFR part 328 (328.0 through 328.5-328.99). Consumers have historically identified the use of the official advertising statement (such as Member FDIC) and FDIC-Associated Terms or FDIC-Associated Images to signify that they are dealing with an IDI and will How could the proposed rule be modified to better accommodate signage needs in such branches while also satisfying the FDIC's objectives? 9, 2021). At each location within the premises where non-deposit products are offered, an insured depository institution must continuously, clearly, and conspicuously display signage indicating that the non-deposit products: are not insured by the FDIC; are not deposits and may lose value. 21 To the extent these pages can be considered "advertisements," the inclusion of the digital sign on these pages would make clear that the IDI is . Any insured depository institution which has promptly submitted a written request for an official sign to the Corporation shall not be deemed to have violated this subpart by failing to display the official sign, unless the insured depository institution fails to display the official sign after receipt thereof. establishing the XML-based Federal Register as an ACFR-sanctioned Are the requirements in the proposed regulation clearly stated? For purposes of this definition, a credit product is not a non-deposit product. This IC captures the implementation burden. The information collection requirements (IC) contained in this notice of proposed rulemaking have been submitted to OMB for review and approval by FDIC under section 3507(d) of the PRA and 1320.11 of OMB's implementing regulations (5 CFR part 1320) as a new information collection. 4. These can be useful Businesses or other for-profit. Interested parties are invited to submit written comments, identified by RIN 3064-AF26, by any of the following methods: (b) Section 18(a)(4) also provides the FDIC independent authority to investigate and take administrative enforcement actions, including the power to issue cease and desist orders and impose civil money penalties, against any person who misuses the FDIC name or logo or makes misrepresentations about deposit insurance. Developments No. These markup elements allow the user to see how the document follows the online 44. promote public confidence in insured deposits, and prevent false and misleading representations about the manner and extent of FDIC deposit insurance. This would include, but not be limited to, IDI websites, web-based applications, and mobile applications that offer consumers access to insured deposits at IDIs. means any digital asset implemented using cryptographic techniques. Hancock Whitney Bank Comment Letter to 2021 RFI (May 24, 2021); Kasasa Comment Letter to 2020 RFI (March 24, 2020) (stating that the official sign should not be required on an IDI's website or mobile applications but suggests requiring, at minimum, the FDIC advertising statement on certain pages). 18. This IC captures the ongoing burden. The proposed rule would require the display of these disclosures on each transaction page or screen relating to non-deposit products. The FDIC is proposing to amend part 328 of its regulations, which includes requirements for use of the official FDIC sign and IDIs' advertising statements, as well as misrepresentations of insured status and misuse of the FDIC's name or logo. speedbump,[23] False advertising is an actionable civil claim under Section 43(a) of the Lanham Act.A party who successfully sues for false advertising may be entitled to either damages or injunctive relief.. To bring a claim for false advertising, the plaintiff must show:. Start Printed Page 78036. A Proposed Rule by the Federal Deposit Insurance Corporation on 12/21/2022. The current regulation allows IDIs to use the short title Member of FDIC, Member FDIC, or a reproduction of the symbol of the corporation (defined in 328.2(b)). The proposed rule is described in further detail below. [52] Proposed 328.8 would require IDIs to establish and maintain written policies and procedures to achieve compliance with part 328 including provisions related to monitor and evaluate the activities of persons that provide deposit-related services to the IDI or offer the IDI's deposit-related products or services to other parties. 52. The FDIC invites comments on all aspects of this Expected Effects section. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. The SBA defines a small banking organization as having $750 million or less in assets, where an organization's assets are determined by averaging the assets reported on its four quarterly financial statements for the preceding year. See 13 CFR 121.201 (as amended by 87 FR 18627, effective May 2, 2022). How do the "brief summary," "prescribing information," "major statement," and "adequate provision" differ? It depends on the prescribing information for the particular drug, How many people have the condition the drug treats, How the drug works (its "mechanism of action"), However, if the ad claims that the drug works quickly, the ad must explain what "quickly" means, How many people who take the drug will be helped by it. Does the FDA review and approve all advertisements for drugs before their release? The proposed rule's sign requirements include three distinct signs relating to deposit insurance. 42. Insured depository institutions may use electronic media to display the official sign and non-deposit sign required by this section. Electronic media. The FDIC also believes it is appropriate to require the digital sign on the login page so consumers are informed before signing up for or signing into an online account that such an account is associated with an IDI rather than a non-bank entity. Except as provided in paragraph (e)(3) of this section, an insured depository institution shall not include the official advertising statement, or any other statement or symbol which implies or suggests the existence of Federal deposit insurance, in any advertisement relating solely to hybrid products.
