# Legal Compliance Specification

This specification defines the legal compliance requirements for Barclays and Barclaycard marketing materials. Use this to assess proof assets for legal compliance, advertising standards, and regulatory requirements.

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## 1. CORE REGULATORY PRINCIPLES

### FCA Principles for Business
All marketing communications must adhere to:
- **Principle 2**: Conduct business with due skill, care and diligence
- **Principle 3**: Take reasonable care to organize affairs responsibly with adequate risk management
- **Principle 6**: Pay due regard to interests of customers and treat them fairly
- **Principle 7**: Pay due regard to information needs of clients; communicate clearly, fairly and not misleadingly
- **Principle 12**: Act to deliver good outcomes for retail customers

### Universal Requirement
**All communications must be "clear, fair and not misleading"** - this is the fundamental test for every piece of marketing material.

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## 2. FINANCIAL PROMOTION DETECTION

### Definition
A **financial promotion** is any communication that:
- Invites or induces a person to engage in regulated financial activity
- Encourages individuals to take out or switch to a Barclays/Barclaycard product
- Promotes financial products or services to attract new customers

### Regulated Financial Products

| Product Category | Examples |
|-----------------|----------|
| Current Accounts | All types including cheque deposit services |
| Savings Accounts | Cash savings, instant access, fixed term |
| Credit Cards | Including balance transfers, money transfers, instalment plans, Section 75 protection, grace days |
| Loans | Personal loans, including repayment changes |
| Overdrafts | Including repayment changes |
| Insurance | All insurance products |
| ISAs | Individual Savings Accounts |
| Mortgages | All mortgage products |
| E-money Products | Apple Pay, Google Pay, digital wallets |
| Ancillary Products | Blue Rewards, Avios, cashback platforms, prize draws (when requiring product ownership) |

### Inducement Indicators
Flag as financial promotion if the content contains:
- **Persuasive elements** intended to tempt purchase
- **Claims to save money** or provide financial benefit
- **Call-to-action phrases**: "take a look", "exclusive", "apply now", "switch today", "find out more"
- **Interest rates or APR** mentioned
- **Loan terms or credit offers**
- **Promotional rates** (introductory offers, balance transfer rates)
- **Investment products or returns**

### New Product Considerations
- Products are classified as "new" for **12 months** from launch date
- After 12 months, product is no longer classified as new (but may still be high-risk if it meets other criteria)
- Changes to key components affecting customer experience = "amended product" (high-risk)

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## 3. RISK CLASSIFICATION

### High-Risk Content (Requires Legal Submission)

| Category | Description |
|----------|-------------|
| Financial Promotions | Any content meeting financial promotion definition above |
| New Products/Services | Products launched within the last 12 months |
| Amended Products | Changes to key components impacting customer experience |
| Sustainability Claims | Any reference to "green", "sustainable", "environmentally friendly", "carbon neutral", "net zero", "eco-friendly" |
| Third-Party Propositions | New third-party partnerships within last 12 months |

### Low-Risk Content (Self-Attestation Permitted)

| Category | Examples |
|----------|----------|
| Operational Information | Operating hours, contact details, maintenance notifications |
| Educational Content | Money management guides, budgeting tips, credit tips, travel tips (without financial promotions) |
| Generic Brand Material | Brand-level content without financial promotions |
| Charity/Fundraising | Charity fundraising campaigns |
| Thought Pieces | Articles without financial promotions |
| Sponsorship Material | Pride, sports sponsorships (without financial promotions) |
| Engagement Content | Newsletters to existing customers |
| Fraud Awareness | Fraud/scam awareness material (with fraud team approval) |
| Non-Regulated Activities | Invoice financing, Digital Eagles, Lifeskills, Money Mentors, Eagle Labs |

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## 4. COMMUNICATION STANDARDS (COBS 4.5)

### Mandatory Requirements
All marketing communications must be:

| Requirement | Description |
|-------------|-------------|
| Accurate | Fair and prominent indication of any relevant risks |
| Understandable | Clear to the average member of the target audience |
| Not Obscured | Cannot disguise, diminish, or obscure important warnings or disclaimers |
| Prominent | Material information must use equal font size to predominant text |
| Consistent Language | Presented in the same language throughout |
| Up-to-Date | Current information relevant to the communication medium |
| Balanced | Fair, balanced presentation with clear risk warnings |

### Plain Language Requirements
- Use plain language and conventional grammar
- Avoid jargon and technical terms where possible
- Minimal appetite for "marketing puff" ("best", "ideal for you", "market-leading")
- All superlative claims must be substantiable with documentary evidence

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## 5. MATERIAL INFORMATION & PROMINENCE

### Prominence Rules
- Material information must be given **equal prominence** to other content
- Font size must be **at least equal to predominant text** in the communication
- Cannot rely on asterisks or footnotes for critical information
- Qualifications must not contradict the primary claim

### Standalone Compliance Principle
- Each advertisement must comply on its own ("standalone principle")
- **Cannot rely on** inserts, web pages, linked content, or other materials for regulatory information
- All essential information must be contained within the communication itself

### Omission Rules
- Must not mislead by **omitting** material information
- Must not mislead by **hiding** material information
- Must not mislead by presenting information in an **unclear, unintelligible, or ambiguous** manner

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## 6. CAP/BCAP CODE REQUIREMENTS

### Core Rules

| Rule | Requirement |
|------|-------------|
| CAP 3.1 | Advertisements must not materially mislead or be likely to do so |
| CAP 3.3 | Material information not properly presented = material misleading |
| CAP 3.7 | Documentary evidence required for all objective claims |
| CAP 3.9 | Qualifying information must be presented clearly |
| CAP 3.10 | Qualifications must not contradict primary claims |

### Prominence Assessment Factors
When assessing prominence of disclaimers and qualifications, consider:
- **Font Size**: Legible and appropriate relative to main content
- **Format**: Style and weight appropriate for importance
- **Legibility**: Clear and readable
- **Background**: Sufficient contrast with background
- **Position**: Located where readers will naturally see it
- **Duration**: (For video/audio) Sufficient time to read/hear

### Substantiation Requirements
- All **objective claims** require documentary evidence
- Evidence must be:
  - Current and relevant
  - From credible sources
  - Sufficient to support the specific claim made
  - Available if challenged

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## 7. REPRESENTATIVE APR REQUIREMENTS

### When Required
Representative APR must be shown when any of the following "triggers" appear:
- Interest rate (including 0%)
- Statements relating to cost of credit
- Any reference to payment terms

### Formatting Requirements

| Element | Requirement |
|---------|-------------|
| Format | "XX.X% APR" (correct formatting with percentage symbol) |
| Prominence | **Equally prominent** as any trigger that caused it to be required |
| "Representative" | Must include the word "Representative" |
| Variable Rate | Must include "variable" if rate is variable |
| Subject to Application | Must include "subject to application" or similar wording |
| Monthly Fees | If monthly fees apply, must be included in representative example |

### Representative Example
When required, must include:
- Cash price
- Total amount of credit
- Duration of agreement
- Repayment amounts and frequency
- Total amount payable
- Representative APR

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## 8. DISCLAIMERS & TERMS

### Placement Rules
- Disclaimers must be **clearly visible** and **prominently positioned**
- Must not be obscured by other elements
- Must have adequate contrast with background

### Legibility Requirements

| Medium | Minimum Font Size |
|--------|------------------|
| Print (standard) | 8pt minimum |
| Print (legal copy) | 6.5pt minimum |
| Digital | 12pt minimum |
| OOH (Out of Home) | 75/95pt minimum |

### Content Requirements
- Complete and accurate information
- Plain language where possible
- All material limitations disclosed
- Terms and conditions reference where necessary

### Terms & Conditions
- T&Cs must be referenced where necessary
- Qualifying text must be clear and not hidden
- Important limitations must be disclosed
- Full T&Cs must be accessible (with clear direction to where they can be found)

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## 9. TESTIMONIALS & ENDORSEMENTS

### Requirements (CAP 3.45, 3.48)

| Requirement | Description |
|-------------|-------------|
| Genuine | Must be genuine opinions from real people |
| Documentary Evidence | Must have documentary evidence and contact details on file |
| Written Permission | Must obtain written permission before featuring |
| No Incentives | Cannot incentivize positive reviews |
| Relevance | Must be relevant to product being advertised |
| Representative | Must be representative of typical customer experience |
| Material Connections | Must disclose any material connections |

### Prohibited Practices
- Cherry-picking only positive reviews
- Editing testimonials to change meaning
- Using outdated testimonials
- Using testimonials without verifiable source

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## 10. COMPARATIVE ADVERTISING

### Requirements (CAP 3.34-3.38)

| Requirement | Description |
|-------------|-------------|
| Like-for-Like | Comparisons must be on like-for-like basis |
| Relevant Features | Must compare relevant, verifiable, representative features |
| Evidence | Must be supported by evidence and be verifiable |
| Fair | Must not give unrepresentative advantage to advertiser |

### Unidentifiable Competitors
When comparing with unnamed competitors:
- Must not mislead about identity of competitors
- Must not give unrepresentative advantage
- Comparison must still be fair and verifiable

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## 11. PROMOTIONAL REQUIREMENTS

### Requirements (CAP 8.14, 8.17)

| Requirement | Description |
|-------------|-------------|
| Supervision | Proper supervision must be in place |
| Resources | Adequate resources for administration |
| Significant Conditions | All significant conditions/limitations must be included |
| Terms & Conditions | Full T&Cs must be available |
| Closing Dates | Cannot change closing dates unless unavoidable circumstances |

### Prize Draws and Competitions
- Entry method must be clear
- Eligibility criteria must be stated
- Prize details must be accurate
- Selection process must be fair

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## 12. SUSTAINABILITY & ESG CONTENT

### High-Risk Classification
**Any marketing content containing sustainability claims is automatically high-risk.**

### Trigger Words
Flag for enhanced scrutiny if content includes:
- "Green"
- "Sustainable"
- "Environmentally friendly"
- "Carbon neutral"
- "Net zero"
- "Eco-friendly"
- "Climate positive"
- "Ethical"
- Any environmental or ESG-related claims

### Requirements
- All sustainability claims must be substantiated
- Cannot make misleading environmental claims (greenwashing)
- Must have evidence to support any environmental benefit claimed

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## 13. THIRD-PARTY & INFLUENCER CONTENT

### Permissions
- Proper licensing for images/content
- Model releases where applicable
- Music/audio rights clearance
- Brand partnership agreements documented

### Influencer/Celebrity Content
- Partnership must be **clearly disclosed**
- **#ad** or equivalent labeling required
- ASA influencer guidelines must be followed
- Material connection must be stated prominently

### Disclosure Requirements
- Disclosure must be immediate and prominent
- Cannot be hidden in hashtags or at end of post
- Must be clear to average viewer

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## 14. CONSUMER DUTY REQUIREMENTS

### Good Outcomes
Marketing must support good customer outcomes through:
- Appropriate information provided at the right time
- Clear customer journey with all relevant T&Cs
- Balanced presentation of benefits AND risks
- No exploitation of behavioral biases

### Vulnerable Customers
- Consider impact on vulnerable customer groups
- Ensure accessibility of information
- Avoid language that could exploit vulnerabilities

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## 15. COMMON VIOLATIONS CHECKLIST

### Financial Promotion Issues
- [ ] Financial promotion not identified as such
- [ ] Missing risk warnings for financial products
- [ ] Representative APR not shown when triggers present
- [ ] APR not equally prominent as trigger content
- [ ] Missing "Representative" or "variable" wording
- [ ] Missing "subject to application" wording
- [ ] Credit available "regardless of circumstances" claim (PROHIBITED)

### Misleading Content Issues
- [ ] Unsubstantiated claims ("best", "market-leading", "guaranteed")
- [ ] Material information omitted or hidden
- [ ] Qualifications contradict primary claim
- [ ] Marketing puff presented as fact
- [ ] Misleading comparisons with competitors
- [ ] Outdated information presented as current

### Prominence Issues
- [ ] Disclaimers smaller than main text
- [ ] Important information in footnotes only
- [ ] Poor contrast making text illegible
- [ ] Disclaimers positioned where unlikely to be seen
- [ ] Asterisks used for material information
- [ ] Qualifying text hidden or obscured

### Testimonial Issues
- [ ] Unverified testimonials used
- [ ] No permission obtained for testimonial
- [ ] Testimonial edited to change meaning
- [ ] Incentivized review not disclosed
- [ ] Testimonial not representative of typical experience

### Third-Party Content Issues
- [ ] Influencer partnership not disclosed
- [ ] Missing #ad or equivalent labeling
- [ ] Material connection not stated
- [ ] Unlicensed images or content used

### Regulatory Compliance Issues
- [ ] Communication not standalone compliant
- [ ] Relies on linked content for required information
- [ ] FCA authorization details incorrect or missing
- [ ] Terms & conditions not referenced
- [ ] Full T&Cs not accessible

### Sustainability Issues
- [ ] Unsubstantiated environmental claims
- [ ] Greenwashing (misleading eco-claims)
- [ ] Sustainability content not flagged as high-risk

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## 16. RAG STATUS GUIDELINES

### Green (Compliant)
- All legal requirements met
- No missing disclaimers or warnings
- All claims substantiated
- Proper prominence for all required elements
- If financial promotion: correctly identified with all requirements met

### Amber (Issues Requiring Attention)
- Minor prominence issues (easily correctable)
- Missing minor qualifications
- Testimonial verification needed
- Third-party disclosure improvements needed
- Non-critical formatting issues

### Red (Significant Violations)
- Financial promotion requirements not met
- Material information omitted
- Unsubstantiated material claims
- Misleading content
- Missing required risk warnings
- Regulatory compliance failures
- Credit availability claims violating CONC 3.3.3

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*Based on: Marketing LRR Questions (February 2024), Marketing Legal Decision Tree (August 2025), and BUK Marketing High/Low Risk Definitions guidance.*
