(a)
General rule.
(1)
Opt out requirements.
The opt out requirements in §§
146a.14 and
146a.21 (relating to form of opt
out notice to consumers and opt out methods; and limitation on disclosure of
nonpublic personal financial information to nonaffiliated third parties) do not
apply when a licensee provides nonpublic personal financial information to a
nonaffiliated third party to perform services for the licensee or functions on
the licensee's behalf, if the licensee meets both of the following conditions:
(i) Provides the initial notice in accordance
with §
146a.11 (relating to initial
privacy notice to consumers required).
(ii) Enters into a contractual agreement with
the nonaffiliated third party that prohibits the nonaffiliated third party from
disclosing or using the information other than to carry out the purposes for
which the licensee disclosed the information, including use under an exception
in §
146a.32 or §
146a.33 (relating to exceptions to
notice and opt out requirements for disclosure of nonpublic personal financial
information for processing and servicing transactions; and other exceptions to
notice and opt out requirements for disclosure of nonpublic personal financial
information) in the ordinary course of business to carry out those
purposes.
(2)
Example. If a licensee discloses nonpublic personal financial
information under this section to a financial institution with which the
licensee performs joint marketing, the licensee's contractual agreement with
that institution meets the requirements of paragraph (1) if it prohibits the
institution from disclosing or using the nonpublic personal financial
information except as necessary to carry out the joint marketing or under an
exception in §
146a.32 or §
146a.33 in the ordinary course of
business to carry out that joint marketing.
(b)
Service may include joint
marketing. The services a nonaffiliated third party performs for a
licensee under subsection (a) may include marketing of the licensee's own
products or services or marketing of financial products or services offered
under joint agreements between the licensee and one or more financial
institutions.
(c)
Definition of "joint agreement." For purposes of this section,
"joint agreement" means a written contract under which a licensee and one or
more financial institutions jointly offer, endorse or sponsor a financial
product or service.
