Advertising Rule Could Have Compliance Consequences
February 1, 2011
March 3, 2011
The National Credit Union Administration (NCUA) has proposed changes to advertising requirements that could force some credit unions to reduce or eliminate some of their current marketing practices. At its December meeting, the NCUA board approved a proposed rule that extends the NCUA’s official advertising statement rule to all radio and television advertisements, annual reports, and statements of condition.
In addition, for print advertisements, the official advertising statement must be “no smaller than the smallest font size used in other portions of the advertisement intended to convey information to the consumer.” NCUA board member Gigi Hyland was the lone dissenting vote and expressed concerns over the additional costs and totality of regulatory burdens for credit unions.
Radio and television advertisements that are under 30 seconds long were previously exempted from including the NCUA’s advertising statement requirement. The NCUA has claimed that adding additional disclaimers to these ads would increase consumer confidence.