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Can I skip obtaining consent to disclose personal information for a business purpose in Alabama? What are the requirements?

To disclose personal information for a business purpose in Alabama, you must obtain consent from the individual, unless an exception applies. The Guidelines for Obtaining Consent were repealed in 2009 [1.1]. However, there are exceptions to notice and opt-out requirements for disclosure of nonpublic personal financial information [2.1]. These exceptions include disclosure with the consent or at the direction of the consumer, to protect the confidentiality or security of a licensee’s records pertaining to the consumer, 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, 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 licensee, persons that are assessing the licensee’s compliance with industry standards, and the licensee’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 licensee for examination, compliance or other purposes as authorized by law, and for purposes related to the replacement of a group benefit plan, a group health plan, a group welfare plan or a workers’ compensation plan.

If a licensee receives nonpublic personal financial information from a nonaffiliated financial institution other than under an exception in Sections 15 or 16 of the regulation, the licensee may disclose the information only to the licensee’s affiliates, but its affiliates may, in turn, disclose the information only to the extent that the licensee may disclose the information [2.6].

Therefore, in general, consent is required to disclose personal information for a business purpose in Alabama, unless an exception applies.

Source(s):
Jurisdiction

Alabama