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

Sharing Personal Information with Third Parties in Virginia

Virginia law places restrictions on the sharing of personal information about customers with third parties. Merchants and insurance institutions must provide notice to individuals before disclosing their information, and individuals must be given an opportunity to direct that such information not be disclosed [2.1].

According to VACV 59.1-442, no merchant in Virginia may sell to any third person information that concerns the purchaser and that is gathered in connection with the sale, rental, or exchange of tangible personal property to the purchaser at the merchant’s place of business without giving notice to the purchaser. If requested by a purchaser not to sell such information, the merchant shall not do so. No merchant shall sell any information gathered solely as the result of any customer payment by personal check, credit card, or where the merchant records the number of the customer’s driver’s license or other document issued under Chapter 3 (§ 46.2-300 et seq.) of Title 46.2 or the comparable law of another jurisdiction [1.1].

Similarly, VACV 38.2-612.1 places restrictions on the disclosure of financial information about an individual collected or received in connection with an insurance transaction. No insurance institution, agent, or insurance-support organization may, directly or through an affiliate, disclose to a nonaffiliated third party financial information about an individual collected or received in connection with an insurance transaction, unless the individual has been given a clear and conspicuous notice in writing, or in electronic form if the individual agrees, stating that such financial information may be disclosed to such nonaffiliated third party. The individual must also be given an opportunity, before such financial information is initially disclosed, to direct that such information not be disclosed, and in no case shall the individual be given less than 30 days from the date of notice to direct that such information not be disclosed [1.1].

Exceptions

There are some exceptions to these restrictions. For example, VACV 38.2-612.1 allows for disclosure of financial information if the nonaffiliated third party agrees not to disclose such financial information to any other person unless such disclosure would otherwise be permitted by this article if made by the insurance institution, agent, or insurance-support organization. Additionally, VACV 2.2-3808 allows for the collection of a social security number for the sole purpose of complying with the Virginia Debt Collection Act or the Setoff Debt Collection Act [2.1].

Conclusion

In conclusion, Virginia law places restrictions on the sharing of personal information about customers with third parties. Merchants and insurance institutions must provide notice to individuals before disclosing their information, and individuals must be given an opportunity to direct that such information not be disclosed. There are some exceptions to these restrictions, such as for compliance with certain laws [1.1][2.1].

Source(s):
Jurisdiction

Virginia