Can I collect financial information from participants in Maryland? What are the requirements?

Based on the information provided in the Maryland Code, there are requirements for collecting financial information from participants in Maryland.

Requirements for Collecting Financial Information in Maryland

According to MDCR 31.16.08.05, a licensee must provide an initial notice to consumers that accurately reflects its privacy policies and practices. The notice must be provided to the consumer before or at the time of establishing a customer relationship and must include the following information:

• The categories of nonpublic personal financial information that the licensee collects;
• The categories of nonpublic personal financial information that the licensee discloses;
• 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 Regulations .15 and .16 of this chapter;
• The categories of nonpublic personal financial information about the licensee’s former customers that the licensee discloses; and
• An explanation of the consumer’s right under Regulation .11A of this chapter 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.

Additionally, MDCR 31.16.08.08 requires a licensee to provide a clear and conspicuous opt-out notice to consumers before disclosing nonpublic personal financial information to a nonaffiliated third party. The notice must include a reasonable means for the consumer to opt out, such as a toll-free telephone number or a form that can be mailed or electronically submitted.

Financial Auditing

MDCR 36.09.04.04 requires a fantasy competition operator that conducts competitions that require an entry fee and that generates gross annual revenues of $250,000 or more in Maryland to ensure that a financial audit is performed annually by a certified public accountant. The certified public accounting firm that conducts the financial audit must comply with generally accepted accounting principles and submit the financial audit report to the Commission within 180 days of the fantasy competition operator’s fiscal year end.

Conclusion

Based on the above requirements, it is possible to collect financial information from participants in Maryland, but a licensee must provide an initial notice and opt-out notice to consumers before disclosing nonpublic personal financial information to nonaffiliated third parties. Additionally, a fantasy competition operator that generates gross annual revenues of $250,000 or more in Maryland must ensure that a financial audit is performed annually by a certified public accountant.

Jurisdiction

Maryland

• Privacy