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Can I prioritize privacy compliance to gain a competitive advantage, reduce the possibility of regulatory issues, and help secure valuable partnerships in Alabama? What are the requirements?

Prioritizing Privacy Compliance in Alabama

Yes, prioritizing privacy compliance can provide a competitive advantage, reduce the possibility of regulatory issues, and help secure valuable partnerships in Alabama.

Requirements for Privacy Compliance

The Alabama Administrative Code (ALAC) Section 482-1-122 outlines the requirements for privacy notices in Alabama. Licensees must provide clear and conspicuous privacy notices to customers that accurately reflect their privacy policies and practices not less than annually during the continuation of the customer relationship [1.3]. The privacy notices must include the following information:

  1. The categories of nonpublic personal financial information that the licensee collects.
  2. The categories of nonpublic personal financial information that the licensee discloses.
  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 15 and 16.
  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 15 and 16.
  5. If a licensee discloses nonpublic personal financial information to a nonaffiliated third party under Section 14 (and no other exception in Sections 15 and 16 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 11A 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 U.S.C. §1681a(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.
  9. Any disclosure that the licensee makes under Subsection B of this section [1.4].

Licensees must also provide a revised notice before disclosing any new category of nonpublic personal financial information to any nonaffiliated third party, nonpublic personal financial information to a new category of nonaffiliated third party, or nonpublic personal financial information about a former customer to a nonaffiliated third party, if that former customer has not had the opportunity to exercise an opt-out right regarding that disclosure [1.1].

Other Relevant Requirements

In addition to the privacy notice requirements, Alabama law requires that all persons who submit a proposal, bid, contract, or grant proposal to the State of Alabama for direct financial gain must include a disclosure statement developed by the Attorney General and approved by the Legislative Council if the proposed grant or contract exceeds $5,000 [2.1].

Conclusion

Prioritizing privacy compliance can provide a competitive advantage, reduce the possibility of regulatory issues, and help secure valuable partnerships in Alabama. The requirements for privacy compliance in Alabama include providing clear and conspicuous privacy notices to customers that accurately reflect privacy policies and practices not less than annually during the continuation of the customer relationship. The privacy notices must include specific information outlined in ALAC Section 482-1-122. Additionally, those submitting proposals, bids, contracts, or grant proposals to the State of Alabama for direct financial gain must include a disclosure statement if the proposed grant or contract exceeds $5,000.

Source(s):
Jurisdiction

Alabama