Regulatory Alerts2022-06-02 | 2022-10903False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC’s Name or Logo
The Federal Deposit Insurance Corporation adopted a final rule implementing Section 18(a)(4) of the Federal Deposit Insurance Act to address false advertising, misrepresentation of insured status, and misuse of its name or logo. The regulation establishes standardized procedures for identifying violations, defines evaluation criteria adapted from FTC deception standards, and authorizes formal and informal enforcement actions including cease-and-desist orders and civil money penalties. By broadly defining "consumer" to include all current and potential depositors, the rule enhances transparency for non-bank entities and financial services providers while safeguarding public confidence in FDIC deposit insurance.
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