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Can I use customer data for marketing purposes without violating privacy laws in Maryland? What are the requirements?
Requirements for Using Customer Data for Marketing Purposes in Maryland
In Maryland, using customer data for marketing purposes is subject to privacy laws and regulations. The Maryland Consumer Debt Collection Act and local law enforced by the State Division of Consumer Protection or a local consumer protection unit may apply to the use of customer data for debt collection purposes [1.1]. However, there are no specific laws or regulations in Maryland that prohibit the use of customer data for marketing purposes.
That being said, businesses that use customer data for marketing purposes must comply with federal and state privacy laws, including the Maryland Personal Information Protection Act (PIPA) . PIPA requires businesses to take reasonable steps to protect personal information from unauthorized access, use, or disclosure. Personal information includes any information that can be used to identify an individual, such as name, address, email address, phone number, social security number, or driver’s license number.
To use customer data for marketing purposes in Maryland, businesses must:
- Obtain consent: Businesses must obtain the customer’s consent before using their personal information for marketing purposes. Consent must be freely given, specific, informed, and unambiguous. Businesses must also provide customers with a clear and conspicuous notice of their privacy practices, including how they collect, use, and share personal information.
- Provide opt-out options: Businesses must provide customers with opt-out options to stop receiving marketing communications. Opt-out options must be easy to use and readily available.
- Protect personal information: Businesses must take reasonable steps to protect personal information from unauthorized access, use, or disclosure. This includes implementing appropriate security measures, such as encryption, firewalls, and access controls.
- Comply with other applicable laws: Businesses must comply with other applicable laws and regulations, such as the Telephone Consumer Protection Act (TCPA) and the CAN-SPAM Act, which regulate telemarketing and email marketing, respectively.
Conclusion
In summary, businesses can use customer data for marketing purposes in Maryland as long as they comply with federal and state privacy laws, including obtaining consent, providing opt-out options, protecting personal information, and complying with other applicable laws and regulations.
Source(s):
- [1.1] Section 7-103
Jurisdiction
Maryland