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

Selling Personal Information in Vermont

In Vermont, selling personal information without obtaining consent is generally prohibited. However, there are exceptions to this rule.

Under VTCR 21-010-016 § 16 and VTCR 21-030-004 § 16, a financial institution may disclose nonpublic personal financial information without obtaining consent in certain circumstances. These include:

  • With the consent or at the direction of the consumer, provided that the consumer has not revoked the consent or direction;
  • To protect the confidentiality or security of a financial institution’s records pertaining to the consumer, service, product or transaction;
  • To protect against or prevent actual or potential fraud or unauthorized transactions, claims or other liability;
  • For required institutional risk control or for resolving consumer disputes or inquiries;
  • To persons holding a legal or beneficial interest relating to the consumer;
  • To persons acting in a fiduciary or representative capacity on behalf of the consumer;
  • To provide information to insurance rate advisory organizations, guaranty funds or agencies, agencies that are rating a financial institution, persons that are assessing the financial institution’s compliance with industry standards, and the financial institution’s attorneys, accountants and auditors;
  • To comply with federal, state or local laws, rules and other applicable legal requirements;
  • To comply with a properly authorized civil, criminal or regulatory investigation, or subpoena or summons by federal, state or local authorities;
  • To respond to judicial process or government regulatory authorities having jurisdiction over a financial institution for examination, compliance or other purposes as authorized by law.

Limits on Redisclosure and Reuse of Nonpublic Personal Financial Information

If a financial institution discloses nonpublic personal financial information to a nonaffiliated third party under an exception in § 15 or § 16, the third party may disclose and use that information only as follows:

  • The third party may disclose the information to your affiliates;
  • The third party may disclose the information to its affiliates, but its affiliates may, in turn, disclose and use the information only to the extent that the third party may disclose and use the information;
  • The third party may disclose and use the information pursuant to an exception in § 15 or § 16 in the ordinary course of business to carry out the activity covered by the exception under which it received the information.

Prohibitions on Acquisition and Use of Brokered Personal Information

Under 9 VTST 2431, a person shall not acquire or use brokered personal information for the purpose of committing a fraud, including identity theft, financial fraud, or e-mail fraud.

Requirements for Selling Personal Information

If a financial institution discloses nonpublic personal financial information without obtaining consent, it must comply with the limits on redisclosure and reuse of that information. Additionally, under 9 VTST 2431, a person shall not acquire or use brokered personal information for certain purposes.

There are no specific requirements for selling personal information in Vermont. However, financial institutions must comply with the exceptions and limits on redisclosure and reuse of nonpublic personal financial information.

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Source(s):
Jurisdiction

Vermont