Shop Pay Installments compliance and regulation guidelines

Your marketing material needs to comply with various state and federal regulations, such as the Equal Credit Opportunity Act, the Controlling the Assault of Non-Solicited Pornography And Marketing (CAN-SPAM) Act, and the Federal Trade Commission (FTC) advertising and marketing rules, which include endorsement guidelines and full disclosure requirements.

When you create marketing material to promote Shop Pay Installments, you need to use approved messaging and guidelines.

Fair lending guidelines

Fair lending guidelines are regulated by the Equal Credit Opportunity Act (ECOA). To promote Shop Pay Installments, you need to:

  • Avoid adding requirements to the application process
  • Make Shop Pay Installments available to all customers by encouraging everyone to apply
  • Target a broad demographic
  • Treat similarly situated individuals the same

Don't use your Shop Pay Installments marketing material to target specific demographics based on one or more of the following:

  • Age (provided the applicant has the capacity to contract)
  • Color of skin
  • Gender
  • Income dependency on a public assistance program
  • Marital status
  • National origin
  • Race
  • Religion
  • Sexual orientation

If your Shop Pay Installments marketing material targets specific groups, then you're not giving all individuals an equal opportunity to use Shop Pay Installments. Depending on how much of your marketing material is about financing, by targeting specific groups, you increase your risk of breaking fair lending laws. This can lead to lawsuits or fines.

Although your products might be attractive to a specific demographic, your marketing material should target a broad demographic if it includes content about financing.

Learn more about the Federal Trade Commission's basic provisions of the ECOA.

Unfair, Deceptive, or Abusive Acts or Practices (UDAAP)

To reduce the risk of misleading customers, your marketing material needs to:

  • Avoid using misrepresentations, omissions, or other deceptive claims
  • Avoid a false sense of urgency
  • Be honest
  • Be clear and easy to understand
  • Include all relevant information
  • Support claims with facts about the product

If you offer a promotion or rebate, such as a risk-free trial or money-back guarantee, then you should always honor the promotion.

Learn more about UDAAP.

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