Unfair or Deceptive Acts or Practices Policy
This Unfair or Deceptive Acts or Practices Policy mitigates potential risks of a bank, credit union, fintech company, or other type of financial institution posed by Section 5 of the Federal Trade Commission Act (FTC Act) regarding Unfair or Deceptive Acts or Practices (UDAP). In general, Section 5 of the Federal Trade Commission Act (FTC Act) declares that UDAPs affecting commerce are illegal and the federal banking agencies have authority to enforce Section 5 of the FTC Act for the institutions they supervise.
The Federal Trade Commission (FTC) has authority to take action against nonbanks that engage in a UDAP. If a UDAP involves an entity or entities over which more than one agency has enforcement authority such as, for example, the FDIC and the FTC, the agencies may coordinate their enforcement actions. Unlike many consumer protection laws, Section 5 of the FTC Act also applies to transactions with non-consumers and businesses.
Table of Contents
- Purpose and Contents – Topic 1
- Policy Statement – Topic 2
- Risk Management – Topic 3
- Structure of Accountability and Responsibility – Topic 4
- Determination of Unfair or Deceptive Standard – Topic 5
- Unfair Acts or Practices – Topic 6
- Deceptive Acts or Practices – Topic 7
- Red Flags – Topic 8
- Consumer Complaints – Topic 9
- Bank Operations – Topic 10
- Use of Consumer Reviews and Testimonials – Topic 11
- Relation to Other Laws and Regulations – Topic 12
- Audit Policy – Topic 13
- Staff Training – Topic 14
- Retention of Documentation – Topic 15
Recent updates to this product:
09/03/24 Update
FTC Final Rule – Trade Regulation Rule on the Use of Consumer Reviews and Testimonials
05/15/24 Update
FTC Final Rule – Non-Compete Clause Rule
04/15/24 Update
FDIC FIL-16-2024 – FDIC Consumer Compliance Supervisory Highlights – March 2024 Edition
03/04/24 Update
FTC Final Rule – Trade Regulation Rule on Impersonation of Government and Businesses
This Unfair or Deceptive Acts or Practices Policy (approximately 32 pages) is available to purchase from BankPolicies.com in Microsoft® Word format.
