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Can I share personal information about my customers with third parties in South Dakota? What are the requirements?

Sharing Personal Information with Third Parties in South Dakota

In South Dakota, you may share personal information about your customers with third parties only if certain requirements are met [1.1]. These requirements include providing the consumer with an initial notice, an opt-out notice, and a reasonable opportunity to opt-out of the disclosure. The licensee must also comply with this section regardless of whether the licensee and the consumer have established a customer relationship. A licensee may allow a consumer to select certain nonpublic personal financial information or certain nonaffiliated third parties with respect to which the consumer wishes to opt-out [1.1].

However, there are exceptions to the opt-out requirements for disclosure of nonpublic personal financial information for service providers and joint marketing [1.2]. The opt-out requirements do not apply when a licensee provides nonpublic personal financial information to a nonaffiliated third party to perform services for the licensee or functions on the licensee’s behalf, if the licensee provides the initial notice in accordance with § 20:06:45:04 and enters into a contractual agreement with the third party that prohibits the third party from disclosing or using the information other than to carry out the purposes for which the licensee disclosed the information, including use under an exception in § 20:06:45:14 or 20:06:45:15 in the ordinary course of business to carry out those purposes [1.2].

Annual Privacy Notice

A licensee shall provide a clear and conspicuous notice to customers that accurately reflects its privacy policies and practices not less than annually during the continuation of the customer relationship [1.3]. The licensee may define the 12-consecutive-month period, but the licensee shall apply it to the customer on a consistent basis. A licensee is not required to provide an annual notice to a former customer [1.3].

Other Exceptions

There are other exceptions to notice and opt-out requirements for disclosure of nonpublic personal financial information [1.6]. The requirements for initial notice to consumers, the opt-out, and service providers and joint marketing do not apply when a licensee discloses nonpublic personal financial information with the consent or at the direction of the consumer, provided that the consumer has not revoked the consent or direction. The requirements also do not apply when a licensee discloses nonpublic personal financial information to protect the confidentiality or security of a licensee’s records pertaining to the consumer, service, product, or transaction, to protect against or prevent actual or potential fraud or unauthorized transactions, for required institutional risk control or for resolving consumer disputes or inquiries, to persons holding a legal or beneficial interest relating to the consumer, or to persons acting in a fiduciary or representative capacity on behalf of the consumer [1.6].

Therefore, to share personal information with third parties in South Dakota, you must comply with the above requirements and exceptions.

Source(s):
Jurisdiction

South Dakota