Direct Mail Alert: New California Law
Effective January 1, 2025, Impacting Mail for Financial Products & Services
To Our Clients Mailing California Consumers:
There is a new California Law taking effect on January 1, 2025, that will impact your direct mail advertising materials. This new law amends the Consumers Legal Remedies Act and regulates mailed solicitations about consumer financial products and services. The definition of what constitutes these services is broad. See State Bill 1096 for more information.
Darwill is here to help answer common questions regarding this amendment.
What is the purpose of this bill amendment?
The purpose of this bill amendment is to enhance consumer protection. It aims to address privacy concerns by enforcing stricter regulations on the content and delivery of marketing materials. It may have a significant impact on advertisers who send marketing mail.
What is the key takeaway from this bill?
A key provision of the bill requires that the front of outer envelopes include a bold type disclosure statement. This statement must clearly indicate that the content is an advertisement and specify that the recipient is “not required to make any payment or take any action in response to this offer."
Additional Provisions to Adhere to for Marketing Mail:
- Clear Identification of Sender – Marketing mail must prominently display the name and contact information of the business or individual responsible for the content.
- Opt-Out Mechanism – Marketing mail must include a straightforward and accessible opt-out mechanism.
- Accurate and Non-Misleading Information – All marketing claims made in the mail must be accurate and non-misleading and not contain deceptive claims.
- Disclosure Statement Requirement – Solicitations for consumer financial products or services sent by physical mail include a disclosure statement in enlarged, bold type on the front of the envelope. (see above).
How Can Darwill Help?
This is a high-level overview of the law, and we will do our best to execute on the interpretation correctly. We recommend all clients seek legal counsel to ensure their marketing mail is compliant.
