Unfair, Deceptive, or Abusive Acts or Practices.

Section 5 of the Federal Trade Commission (FTC) Act prohibits "unfair or deceptive acts or practices in or affecting commerce." Sections 1031 and 1036 of the Dodd-Frank Wall Street Reform and Consumer Protection Act prohibit unfair, deceptive, or abusive acts or practices. An act or practice can be unfair, deceptive, or abusive despite technical compliance with other laws. A financial institution should not engage in any advertising or other practice via social media that could be deemed "unfair," "deceptive," or "abusive." Of course, any determination as to whether an act or practice engaged in through social media is unfair, deceptive, or abusive, will necessarily be fact-specific. As with other forms of communication, a financial institution should ensure that information it communicates on social media sites is accurate, consistent with other information delivered through electronic media, and not misleading.

Sources: FFIEC; UDAAP