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ARTICLE · 19 MAY 2022

FDIC Issues New Rule About Misuse Of FDIC Logo

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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In response to an increasing number of instances where companies have misused the Federal Deposit Insurance Corporation's branding, the FDIC issued a new rule that prohibits misrepresentations about ...

United StatesMedia, Telecoms, IT, Entertainment

In response to an increasing number of instances where companies have misused the Federal Deposit Insurance Corporation's branding, the FDIC issued a new rule that prohibits misrepresentations about FDIC deposit insurance and that also prohibits the misuse of the FDIC's name and logo.  

FDIC Acting Chairman Martin J. Gruenberg said, "These practices not only harm those who are targeted with the false promise of deposit insurance, but, if left unchecked, could also undermine confidence in the FDIC, FDIC-insured banks, and the U.S. banking system." 

The Federal Deposit Insurance Act prohibits anyone from misrepresenting that any deposit liability, obligation, certificate, or share is insured by the FDIC.  Since the law was adopted, the FDIC has only issued one formal enforcement order against a non-bank entity for misuse of the FDIC's name or logo.  During 2019 and 2020, however, the FDIC reached informal resolutions regarding the misuse of its name or logo in at

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This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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