Which type of advertisement must display the APR in order to comply with regulations?

The requirement to display the Annual Percentage Rate (APR) is a critical component of advertising specific to financial products, such as loans or mortgages. When an advertisement includes specific terms relating to the financial transaction—like the amount of the loan, the interest rate, the payment terms, or any specific finance charges—it is essential to also include the APR. The APR helps consumers understand the total cost of borrowing, as it encompasses the interest rate and additional fees associated with the loan, expressed as an annual rate.

This regulation is in place to ensure transparency and provide consumers with a clearer understanding of the costs involved, which aids in making informed decisions. Advertisements that only mention general terms or that do not include any financial specifics do not necessitate the inclusion of the APR, as they do not directly reference the financial products being offered. Therefore, for advertisements that outline specific terms regarding financial products, including the APR is both required by law and beneficial for consumer awareness.