ICBA urged the Federal Trade Commission to explicitly exclude community banks from a proposed rule requiring commercial businesses to include all mandatory fees when advertising their prices.

Proposal Details: The rule would prohibit businesses regulated by the FTC from misrepresenting the total costs of goods and services by omitting mandatory fees from advertised prices and misrepresenting the nature and purpose of fees.

ICBA Comments: In a comment letter to the FTC, ICBA said:

  • While federally supervised financial institutions are not under the FTC’s jurisdiction, the federal banking agencies adhere to Section 5 of the FTC Act when examining supervised institutions for unfair or deceptive acts or practices.

  • ICBA and community bankers are reasonably concerned that the agencies will incorporate the FTC’s proposed definition in their examinations.

  • Community banks are already required to provide myriad consumer disclosures and protections under various laws and are regularly examined by prudential regulators and the Consumer Financial Protection Bureau.

Background: The FTC issued its proposal in October as part of a broader Biden administration announcement on “junk fees,” which included a CFPB advisory opinion on customer account fees.