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

Based on the North Dakota Century Code (NDCC) and North Dakota Administrative Code (NDAC), obtaining consent is generally required for the disclosure of personal information for a business purpose in North Dakota. However, there are exceptions to this requirement.

According to NDCC Section 6-08.1-04, a valid consent must be in writing and signed by the customer. In consenting to disclosure of customer information, a customer may specify the time during which such consent will operate, the customer information to be disclosed, and the persons, governmental agencies, or law enforcement agencies to which disclosure may be made.

There are several exceptions to the requirement of obtaining consent for the disclosure of personal information for a business purpose in North Dakota. These exceptions are outlined in the following sections of the NDCC and NDAC:

  • NDCC Section 51-22-02: Prohibition against disclosure except upon written consent - Application of section. This section outlines exceptions to the requirement of obtaining consent for disclosure by business entities that charge a fee for data processing services performed. Exceptions include disclosure pursuant to a subpoena or court order, disclosure which is discoverable pursuant to the North Dakota Rules of Civil Procedure, and disclosure to any person pursuant to a lawful search warrant.
  • NDAC Section 45-14-01-17: When authorization required for disclosure of nonpublic personal health information. This section outlines exceptions to the requirement of obtaining authorization for the disclosure of nonpublic personal health information by a licensee for the performance of certain insurance functions, such as claims administration, underwriting, and policy placement or issuance.
  • NDCC Section 6-08.1-09: Joint marketing agreements - Consent. This section outlines an exception to the requirement of obtaining consent for the disclosure of customer information to a nonaffiliated third party under a joint marketing agreement, provided that the financial institution has the customer’s consent.
  • NDAC Section 45-14-01-15: Exceptions to notice and authorization requirements for disclosure of nonpublic personal financial information for processing and servicing transactions. This section outlines exceptions to the requirement of obtaining notice and authorization for the disclosure of nonpublic personal financial information for processing and servicing transactions, such as servicing or processing an insurance product or service that a consumer requests or authorizes, maintaining or servicing the consumer’s account with a licensee, and informing a policyholder or the policyholder’s producer or broker with respect to a claim asserted by, or paid to, a consumer under the policy and servicing and processing such claim.
  • NDAC Section 45-14-01-16: Other exceptions to notice and authorization requirements for disclosure of nonpublic personal financial information. This section outlines additional exceptions to the requirement of obtaining authorization for the disclosure of nonpublic personal financial information, such as disclosure to protect against or prevent fraud or unauthorized transactions, disclosure to persons holding a legal or beneficial interest relating to the consumer, and disclosure to comply with federal, state, or local laws, rules, and other applicable legal requirements.
  • NDAC Section 45-14-01-14: Exception to authorization requirements for disclosure of nonpublic personal financial information for service providers and joint marketing. This section outlines an exception to the requirement of obtaining authorization for the disclosure of 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 45-14-01-05 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 section 45-14-01-15 or 45-14-01-16 in the ordinary course of business to carry out those purposes.

Conclusion

In general, obtaining consent is required for the disclosure of personal information for a business purpose in North Dakota. However, there are exceptions to this requirement, such as disclosure pursuant to a subpoena or court order, disclosure for certain insurance functions, and disclosure for processing and servicing transactions. Additionally, exceptions exist for joint marketing agreements and for disclosure to nonaffiliated third parties to perform services for the licensee or functions on the licensee’s behalf, provided that certain requirements are met.

Jurisdiction

North Dakota