FDIC Official Advertising and Equal Housing Lender Statements on Promotional Items

Issue/Inquiry

If the Bank’s logo appears on an article such as a bank pen in the lobby or a small giveaway at the town day, is it required to include the Federal Deposit Insurance Corporation (“FDIC”) membership logo as well?  If a loan program is referenced on such articles (e.g., the “Heroes Mortgage Program”), are the Equal Housing Lender legend and logo required to appear?

Response Summary

The FDIC official advertising statement must appear in any advertisement that is intended to promote the Bank or its products or services, unless it is impractical to do so, such as on a pen. Likewise, any advertisement promoting a loan secured by a dwelling must display the Equal Housing Lender logotype and legend in a manner that is appropriate for the medium used for the advertisement.

Response Detail

FDIC Official Advertising Statement:

Under the FDIC advertising rules, the FDIC official advertising statement must appear on all advertisements that either promote deposit products and services or promote non-specific banking products offered by a depository institution. The official advertising statement is “Member of the Federal Deposit Insurance Corporation”, although the Bank may also use, at its option, “Member of FDIC”, “Member FDIC”, or a reproduction of the symbol of the FDIC as the official advertising statement. 12 CFR §328.3(a),(b)(1).

The term “advertisement” means a commercial message, in any medium, that is designed to attract public attention or patronage to a product or business. An advertisement that promotes non-specific banking products and services is one that includes the name of the insured depository institution, but does not list or describe any particular products or services offered by the institution. An example of such an advertisement would be: “Anytown Bank, offering a full range of banking services”. 12 CFR §328.3(c).

A pen or other promotional item is considered an advertisement for the purpose of using the FDIC official advertising statement when its intention is to promote the Bank by using the Bank’s name or its products and services. However, advertisements that are of the type or character which make it impractical to include the statement, such as calendars, matchbooks, pens, pencils, and key chains, are not required to do so. 12 CFR §328.3(d)(9).

Therefore, if the promotional item contemplated by the Bank is a pen or something similar and falls within the exception noted, then it will not be necessary for the FDIC official advertising statement to appear on it.

Equal Housing Lender Statement:

Under the FDIC advertising rules pertaining to Fair Housing, any bank that engages in any form of advertising for any loan with the purpose of purchasing, constructing, improving, repairing, or maintaining a dwelling, or any loan secured by a dwelling, is required to prominently indicate within the advertisement, in a manner that is appropriate to the advertising medium and format used, that the bank makes loans without regard to race, color, religion, national origin, sex, handicap, or familial status. 12 CFR §338.3(a).

With respect to written and visual advertisements, this requirement can be satisfied by including a copy of the Equal Housing legend and logotype contained on the Equal Housing Lender poster, or the Equal Housing Opportunity legend and logotype contained on the poster prescribed by the United States Department of Housing and Urban Development regulations. 12 CFR §338.3(a)(1).

The FDIC Fair Housing advertising regulation does not advise on the size of the legend and logotype, and does not make an exception for an advertising medium. Consequently, any promotional item with the name of the Bank and a slogan promoting a loan secured by a dwelling will need to display the Equal Housing legend and logotype. The only consideration that can be given is the Bank’s ability to display the legend and logotype in a manner that is appropriate for the medium. In this case, consideration may be given for the legibility of the legend and logotype on a small promotional item such as a pen due to the size of the item.

This response is for informational purposes only and is not intended for legal guidance.

This entry was posted on Monday, August 10th, 2020 at 6:00 am.