Katapult's LTO program is subject to state LTO laws (including marketing and advertising specific regulations), which vary by state. Katapult also looks to other laws, where applicable, related to marketing and/or advertising its program.
Download our full legal guide and see the most relevant lease-to-own regulations in the table below.
While the below is not an exhaustive list of regulations that apply to Katapult or consumer lease-purchase agreements, these are the most relevant ones to consider when presenting and communicating financing options to your customers.
State LTO and Deceptive Trade Practices Laws
Most state LTO statutes include advertising requirements, including trigger terms, which prompt specific disclosure requirements. Further, certain other state laws prohibit advertising that is deceptive and/or misleading in nature. Katapult works to ensure that the marketing and advertising of its LTO program complies with these laws
LTO is Separate and Distinct From Other Forms of Financing
Katapult's LTO program must not be presented as a credit sale, installment sale, traditional financing or credit, loan, buy now, pay later option, or any other form of credit or financing
Lease-to-own Transaction Provider
All advertisements and/or marketing materials for Katapult lease-to-own solutions must indicate that "Katapult" is the lease-to-own lessor or provider
CAN-SPAM sets forth requirements for commercial email messages, including marketing and advertising materials sent, delivered or promoted via email message. Further, CAN-SPAM provides rules allowing consumers to request that they no longer wish to receive commercial email messages and penalties for not abiding with such requests.
Telephone Consumer Protection Act- "TCPA"
The TCPA regulates telephone calls, including text messages, utilizing an Automatic Telephone Dialing System ("ATDS") or a pre-recorded message. The TCPA requires prior written customer consent before advertising to that customer using an ATDS or a pre-recorded message. As with other Katapult-related marketing, retailers should not contact customers about Katapult's LTO program using an ATDS or pre-recorded message without first requesting consent from Katapult.
Download the full legal guide.
Updated 8 months ago