Current through Register Vol. 48, No. 12, March 22, 2024
a) The initial, annual and revised privacy
notices that a licensee provides under Sections
4002.40,
4002.50
and
4002.80
of this Part shall include each of the following items of information, in
addition to any other information the licensee wishes to provide, that applies
to the licensee and to the consumers to whom the licensee sends its privacy
notice:
1) The categories of nonpublic
personal financial information that the licensee collects, which may include,
but are not limited to, the following:
A)
Information from the consumer;
B)
Information about the consumer's transactions with the licensee or its
affiliates;
C) Information about
the consumer's transactions from nonaffiliated third parties; and
D) Information from a consumer reporting
agency.
2) The
categories of nonpublic personal financial information that the licensee
discloses, which may include, but are not limited to, the following:
A) Information from the consumer, including
application information, such as assets and income and identifying information,
name, address and social security number;
B) Transaction information, such as
information about balances, payment history and parties to the transaction;
and
C) Information from consumer
reports, such as a consumer's creditworthiness and credit history.
3) The categories of affiliates
and nonaffiliated third parties to whom the licensee discloses nonpublic
personal financial information, other than those parties to whom the licensee
discloses information under Sections
4002.140
and
4002.150
of this Part. A licensee may satisfy this subsection (a)(3) by categorizing by
the types of businesses in which they engage, if the licensee uses a few
illustrative examples of significant lines of business such as the term
financial products or services and if it includes appropriate examples of
significant lines of businesses, such as life insurer, automobile insurer,
consumer banking or securities brokerage.
4) The categories of nonpublic personal
financial information about the licensee's former customers that the licensee
discloses and the categories of affiliates and nonaffiliated third parties to
whom the licensee discloses nonpublic personal financial information about the
licensee's former customers, other than those parties to whom the licensee
discloses information under Sections
4002.140
and
4002.150
of this Part;
5) If a licensee
discloses nonpublic personal financial information to a nonaffiliated third
party under Section
4002.130
of this Part (and no other exception in Sections
4002.140
and
4002.150
of this Part applies to that disclosure), a separate description of the
categories of information the licensee discloses and the categories of third
parties with whom the licensee has contracted;
6) An explanation of the consumer's right
under Section
4002.100(a)
of this Part to opt out of the disclosure of nonpublic personal financial
information to nonaffiliated third parties, including the methods by which the
consumer may exercise that right at that time;
7) Any disclosures that the licensee makes
under Section 603(d)(2)(A)(iii) of the federal Fair Credit Reporting Act (
15 USC
1681 a(d)(2)(A)(iii) ) (that is, notices
regarding the ability to opt out of disclosures of information among
affiliates);
8) The licensee's
policies and practices with respect to protecting the confidentiality and
security of nonpublic personal information; and
9) Any disclosure that the licensee makes
under subsection (b) of this Section.
b) Description of parties subject to
exceptions. If a licensee discloses nonpublic personal financial information as
authorized under Sections
4002.140
and
4002.150
of this Part, the licensee is not required to list those exceptions in the
initial or annual privacy notices required by Sections
4002.40
and
4002.50
of this Part. When describing the categories of parties to whom disclosure is
made, the licensee is required to state only that it makes disclosures to other
affiliated or nonaffiliated third parties, as applicable, as permitted by
law.
c) A licensee does not
adequately categorize the information that it discloses pursuant to subsection
(a)(2) of this Section if the licensee uses only general terms, such as
transaction information about the consumer.
d) If a licensee reserves the right to
disclose all of the nonpublic personal financial information about consumers
that it collects, the licensee may simply state that fact without describing
the categories or examples of nonpublic personal information that the licensee
discloses.
e) Disclosures under
exception for service providers and joint marketers. If a licensee discloses
nonpublic personal financial information under the exception in Section
4002.130
of this Part to a nonaffiliated third party to market products or services that
it offers alone or jointly with another financial institution, the licensee
satisfies the disclosure requirement of subsection (a)(5) of this Section if
it:
1) Lists the categories of nonpublic
personal financial information it discloses, using the same categories and
examples the licensee used to meet the requirements of subsection (a)(2) of
this Section, as applicable; and
2)
States whether the third party is:
A) A
service provider that performs marketing services on the licensee's behalf or
on behalf of the licensee and another financial institution; or
B) A financial institution with whom the
licensee has a joint marketing agreement.
f) Simplified notices. If a licensee does not
disclose, and does not wish to reserve the right to disclose, nonpublic
personal financial information about customers or former customers to
affiliates or nonaffiliated third parties except as authorized under Sections
4002.140
and
4002.150
of this Part, the licensee may simply state that fact, in addition to the
information it shall provide under subsections (a)(1), (a)(8), (a)(9), and (b)
of this Section.
g) Confidentiality
and security. A licensee describes its policies and practices with respect to
protecting the confidentiality and security of nonpublic personal financial
information if it does both of the following:
1) Describes in general terms who is
authorized to have access to the information; and
2) States whether the licensee has security
practices and procedures in place to ensure the confidentiality of the
information in accordance with the licensee's policy. The licensee is not
required to describe technical information about the safeguards it
uses.
h) Short-form
initial notice with opt out notice for non-customers.
1) A licensee may satisfy the initial notice
requirements in Sections
4002.40(a)(2)
and
4002.70(e)
of this Part for a consumer who is not a customer by providing a short-form
initial notice at the same time as the licensee delivers an opt out notice as
required in Section
4002.70
of this Part.
2) A short-form
initial notice shall:
A) Be clear and
conspicuous;
B) State that the
licensee's privacy notice is available upon request; and
C) Explain a reasonable means by which the
consumer may obtain that notice.
3) The licensee shall deliver its short-form
initial notice according to Section
4002.90 of
this Part. The licensee is not required to deliver its privacy notice with its
short-form initial notice. The licensee instead may simply provide the consumer
a reasonable means to obtain its privacy notice, which may include, but is not
limited to, a toll-free telephone number that the consumer may call to request
the notice or for a consumer who conducts business in person at the licensee's
office, maintain copies of the notice on hand that the licensee provides to the
consumer immediately upon request. If a consumer who receives the licensee's
short-form notice requests the licensee's privacy notice, the licensee shall
deliver its privacy notice according to Section
4002.90 of
this Part.
i) Future
disclosures. The licensee's notice may include:
1) Categories of nonpublic personal financial
information that the licensee reserves the right to disclose in the future, but
does not currently disclose; and
2)
Categories of affiliates or nonaffiliated third parties to whom the licensee
reserves the right in the future to disclose, but to whom the licensee does not
currently disclose, nonpublic personal financial information.
j) Sample clauses. Sample clauses
illustrating some of the notice content required by this Section are included
in Illustration A of this Part.
k)
Affiliated licensee. Such annual notice may be provided by an affiliated
licensee, as long as the notice clearly identifies all licensees to which the
notice applies or states that it applies to all affiliates of the named
licensee, and is accurate with respect to the licensee and other institutions
and would otherwise meet the requirements of this Part.