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Can I sell personal information without obtaining consent in South Dakota? What are the requirements?

Selling Personal Information in South Dakota

In South Dakota, a licensee cannot sell nonpublic personal financial information without obtaining consent from the consumer [1.1]. However, there are exceptions to the opt-out requirements for disclosure of nonpublic personal financial information [1.1]. The licensee can disclose nonpublic personal financial information without obtaining consent in the following cases:

  • With the consent or at the direction of the consumer, provided that the consumer has not revoked the consent or direction [1.1].
  • To protect the confidentiality or security of a licensee’s records pertaining to the consumer, service, product, or transaction [1.1].
  • To protect against or prevent actual or potential fraud or unauthorized transactions [1.1].
  • For required institutional risk control or for resolving consumer disputes or inquiries [1.1].
  • To persons holding a legal or beneficial interest relating to the consumer [1.1].
  • To persons acting in a fiduciary or representative capacity on behalf of the consumer [1.1].
  • To provide information to insurance rate advisory organizations, guaranty funds or agencies, agencies that are rating a licensee, persons that are assessing the licensee’s compliance with industry standards, and the licensee’s attorneys, accountants, and auditors [1.1].
  • To comply with federal, state, or local laws, rules, and other applicable legal requirements [1.1].

Requirements for Selling Personal Information

If a licensee wants to sell nonpublic personal financial information, they must obtain consent from the consumer [1.1]. The initial, annual, and revised privacy notices that a licensee provides must include the categories of nonpublic personal financial information that the licensee collects and discloses, the categories of affiliates and nonaffiliated third parties to whom the licensee discloses nonpublic personal financial information, and an explanation of the consumer’s right to opt-out of the disclosure of nonpublic personal financial information to nonaffiliated third parties [1.6].

If a licensee discloses nonpublic personal financial information to a nonaffiliated third party under § 20:06:45:13 (and no other exception in §§ 20:06:45:14 and 20:06:45:15 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 must be included in the privacy notice [1.6].

If a licensee obtains a customer list from a nonaffiliated financial institution outside of the exceptions in § 20:06:45:14 or 20:06:45:15, the licensee may use that list for its own purposes and may disclose that list to another nonaffiliated third party only if the financial institution from which the licensee purchased the list could have lawfully disclosed the list to that third party [1.4].

Selling Personal Health Information

In South Dakota, a licensee cannot disclose nonpublic personal health information about a consumer to a nonaffiliated third party unless the licensee has provided to the consumer an initial notice as required under § 20:06:45:04, has provided to the consumer an opt-out notice as required in § 20:06:45:07, has given the consumer a reasonable opportunity, before it discloses the information to the nonaffiliated third party, to opt out of the disclosure, and the consumer does not opt out [1.5]. The licensee must obtain written or electronic authorization from the consumer or customer who is the subject of the nonpublic personal health information to disclose nonpublic personal health information pursuant to § 20:06:45:27 [1.2].

Conclusion

In South Dakota, a licensee cannot sell nonpublic personal financial information without obtaining consent from the consumer. The licensee must provide a privacy notice that includes the categories of nonpublic personal financial information that the licensee collects and discloses, the categories of affiliates and nonaffiliated third parties to whom the licensee discloses nonpublic personal financial information, and an explanation of the consumer’s right to opt-out of the disclosure of nonpublic personal financial information to nonaffiliated third parties. There are exceptions to the opt-out requirements for disclosure of nonpublic personal financial information. The licensee cannot disclose nonpublic personal health information about a consumer to a nonaffiliated third party unless the licensee has provided to the consumer an initial notice, has provided to the consumer an opt-out notice, has given the consumer a reasonable opportunity, before it discloses the information to the nonaffiliated third party, to opt out of the disclosure, and the consumer does not opt out. The licensee must obtain written or electronic authorization from the consumer or customer who is the subject of the nonpublic personal health information to disclose nonpublic personal health information pursuant to § 20:06:45:27.

Source(s):
Jurisdiction

South Dakota