Can I use customer data for marketing purposes without violating privacy laws in North Carolina? What are the requirements?

Using Customer Data for Marketing Purposes in North Carolina

In North Carolina, an insurance institution, insurance agent, or insurance-support organization cannot disclose a customer’s account number or similar form of access number or access code for a credit card account, deposit account, or transaction account to any nonaffiliated third party for use in telemarketing, direct mail marketing, or other marketing through electronic mail to the customer ^[2.1].

Furthermore, an insurance institution or agent must clearly specify those questions designed to obtain information solely for marketing or research purposes from an individual in connection with an insurance transaction ^[2.3].

An insurance institution, agent, or insurance-support organization cannot disclose any personal or privileged information about an individual collected or received in connection with an insurance transaction unless the disclosure is permitted by law or authorized by the individual ^[2.5].

Therefore, you cannot use customer data for marketing purposes without violating privacy laws in North Carolina unless the customer has authorized the disclosure of their personal information. The requirements for disclosing personal information are that the disclosure must be permitted by law or authorized by the individual ^[2.5].

Additional Information

If you are an insurance institution or agent, you must provide a clear and conspicuous notice, in written or electronic form, of your policies and practices with respect to disclosing nonpublic personal information to affiliates and nonaffiliated third parties, consistent with section 502 of Public Law 106-102, including the categories of information that may be disclosed ^[2.2].

No financial institution or its officer, employee, or agent may disclose a customer’s financial record to a government authority except as provided in Chapter 53B of the North Carolina General Statutes ^[1.3][1.4].

Conclusion

In summary, you cannot use customer data for marketing purposes without violating privacy laws in North Carolina unless the customer has authorized the disclosure of their personal information. The requirements for disclosing personal information are that the disclosure must be permitted by law or authorized by the individual. If you are an insurance institution or agent, you must provide a clear and conspicuous notice of your policies and practices with respect to disclosing nonpublic personal information to affiliates and nonaffiliated third parties.

Source(s):

• [2.1] Limits on sharing account number information for marketing purposes.
• [2.2] Federal privacy disclosure notice requirements.
• [2.3] Marketing and research surveys.
• [1.3] Disclosure of financial records
• [1.4] Disclosure of financial records.
• [2.5] Disclosure limitations and conditions.

Jurisdiction

North Carolina

• General