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

To disclose nonpublic personal financial information for a business purpose in Michigan, you generally need to obtain consent from the consumer. However, there are exceptions to this requirement.

Under MICL 500.540, certain associations and facilities, including the Michigan life and health guaranty association, the property and casualty guaranty association, the Michigan automobile insurance placement facility, the Michigan worker’s compensation placement facility, and the assigned claims facility, are exempt from the consent requirement for disclosing nonpublic personal financial information. These associations and facilities may only disclose or use nonpublic personal financial information as provided in section 537(1)(a) to (e) or section 539(a) to (o) [1.1].

Additionally, under MICL 500.531, licensees may disclose nonpublic personal financial information without obtaining consent in certain circumstances. For example, if a licensee receives nonpublic personal financial information from a nonaffiliated financial institution under an exception in section 537 or 539, the licensee’s disclosure and use of that information is limited. The licensee may disclose the information to the affiliates of the financial institution from which the licensee received the information, to its affiliates, or pursuant to an exception in section 537 or 539 in the ordinary course of business to carry out the activity covered by the exception under which the licensee received the information [1.2].

Requirements for Disclosing Nonpublic Personal Financial Information

If you are exempt from the consent requirement, you must still comply with certain requirements when disclosing nonpublic personal financial information.

Under MICL 500.515, you must provide initial, annual, and revised notices that include certain items of information, such as the categories of nonpublic personal financial information that you collect and disclose, the categories of affiliates and nonaffiliated third parties to whom you disclose nonpublic personal financial information, and an explanation of the consumer’s right to opt out of the disclosure of nonpublic personal financial information to nonaffiliated third parties [1.3].

Additionally, under MICL 500.531, if you receive nonpublic personal financial information from a nonaffiliated financial institution under an exception in section 537 or 539, your disclosure and use of that information is limited. You may only disclose the information to certain parties, such as the affiliates of the financial institution from which you received the information, your affiliates, or pursuant to an exception in section 537 or 539 in the ordinary course of business to carry out the activity covered by the exception under which you received the information [1.2].

If you are not exempt from the consent requirement, you must obtain consent from the consumer before disclosing nonpublic personal financial information for a business purpose [1.2].

Therefore, you cannot skip obtaining consent to disclose personal information for a business purpose in Michigan unless you fall under one of the exceptions mentioned above.

Source(s):
Jurisdiction

Michigan