Under advertising disclosures, do general advertising terms require disclosure?

Under advertising disclosures, do general advertising terms require disclosure?

• A. No if they do not refer to repayment period length or downpayment cost
• B. Yes because they have to do with financing a home
• C. Yes because they are designed to lure consumers towards a product based on financing features
• D. Yes Anytime general advertising terms are used for a product that is expensive enough to typically require financing it requires additional disclosures

Answer: (A)

Advertising disclosures focus on terms that affect the cost of credit. If an advertisement uses only general financing language and does not specify a repayment period or a down payment amount, there is no requirement to add disclosures. The disclosures are triggered when the ad references concrete terms like how long the loan term will be or how much the buyer must put down, because those details directly influence the loan cost. If the ad does state a repayment period or a down payment, appropriate disclosures must accompany it. Statements that imply all financing mentions require disclosures, or that disclosures depend on price alone, aren’t accurate.

Advertising disclosures focus on terms that affect the cost of credit. If an advertisement uses only general financing language and does not specify a repayment period or a down payment amount, there is no requirement to add disclosures. The disclosures are triggered when the ad references concrete terms like how long the loan term will be or how much the buyer must put down, because those details directly influence the loan cost. If the ad does state a repayment period or a down payment, appropriate disclosures must accompany it. Statements that imply all financing mentions require disclosures, or that disclosures depend on price alone, aren’t accurate.