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

Sharing Personal Information with Third Parties in West Virginia

In West Virginia, a licensee may not disclose any nonpublic personal financial information about a consumer to a nonaffiliated third party unless the following requirements are met [1.1]:

  1. The licensee has provided to the consumer an initial notice as required under section 3;
  2. The licensee has provided to the consumer an opt-out notice as required in section 6;
  3. The licensee has given the consumer a reasonable opportunity, before it discloses the information to the nonaffiliated third party, to opt out of the disclosure; and
  4. The consumer does not opt out.

A licensee must comply with these requirements, regardless of whether the licensee and the consumer have established a customer relationship [1.1].

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].

If a licensee receives nonpublic personal financial information from a nonaffiliated financial institution under an exception in sections 13 or 14 of the rule, the licensee’s disclosure and use of that information is limited [1.6]:

  1. The licensee may disclose the information to the affiliates of the financial institution from which the licensee received the information;
  2. The licensee may disclose the information to its affiliates, but the licensee’s affiliates may, in turn, disclose and use the information only to the extent that the licensee may disclose and use the information; and
  3. The licensee may disclose and use the information pursuant to an exception in sections 13 or 14 of the rule, in the ordinary course of business to carry out the activity covered by the exception under which the licensee received the information.

If a licensee receives information from a nonaffiliated financial institution for claims settlement purposes, the licensee may disclose the information for fraud prevention or in response to a properly authorized subpoena. The licensee may not disclose that information to a third party for marketing purposes or use that information for its own marketing purposes [1.6].

Requirements for Sharing Personal Information with Third Parties

To share personal information with third parties in West Virginia, a licensee must:

  1. Provide an initial notice to the consumer as required under section 3;
  2. Provide an opt-out notice to the consumer as required in section 6;
  3. Give the consumer a reasonable opportunity to opt out of the disclosure before sharing the information with the nonaffiliated third party;
  4. Comply with the limitations on disclosure and use of nonpublic personal financial information received from nonaffiliated financial institutions under sections 13 and 14 of the rule [1.1][1.6].

A licensee shall provide a clear and conspicuous notice to customers that accurately reflects its privacy policies and practices regarding disclosure of nonpublic personal financial information not less than annually during the continuation of the customer relationship [1.2].

A licensee shall not disclose nonpublic personal health information about a consumer or customer unless an authorization is obtained from the consumer or customer whose nonpublic personal health information is sought to be disclosed [1.3].

The opt-out requirements in sections 6 and 9 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 section 3 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 sections 13 or 14 in the ordinary course of business to carry out those purposes [1.4].

The requirements for initial notice to consumers in subdivision b of subsection 3.1, opting out in sections 6 and 9, and service providers and joint marketing in section 12 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 [1.5].

Therefore, to share personal information with third parties in West Virginia, you must provide an initial notice to the consumer, provide an opt-out notice to the consumer, give the consumer a reasonable opportunity to opt out of the disclosure before sharing the information with the nonaffiliated third party, comply with the limitations on disclosure and use of nonpublic personal financial information received from nonaffiliated financial institutions under sections 13 and 14 of the rule, and provide a clear and conspicuous notice to customers that accurately reflects its privacy policies and practices regarding disclosure of nonpublic personal financial information not less than annually during the continuation of the customer relationship.

Source(s):
Jurisdiction

West Virginia