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

To disclose nonpublic personal financial information for a business purpose in Rhode Island, you generally need to obtain consent from the consumer, except in certain situations outlined in the Rhode Island Code of Regulations.

According to § 7.17 of the Rhode Island Code of Regulations, there are several exceptions to the opt-out requirements for disclosing nonpublic personal financial information. These exceptions include:

  1. With the consent or at the direction of the consumer, provided that the consumer has not revoked the consent or direction;
  2. To protect the confidentiality or security of a licensee’s records pertaining to the consumer, service, product or transaction;
  3. 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;
  4. To comply with federal, state or local laws, rules and other applicable legal requirements;
  5. For purposes related to the replacement of a group benefit plan, a group health plan or a group welfare plan.

Additionally, § 7.15 of the Rhode Island Code of Regulations provides an exception to the opt-out requirements for disclosing nonpublic personal financial information for service providers and joint marketing. This exception applies 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 § 7.5 of this Part 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 §§ 7.16 or 7.17 of this Part in the ordinary course of business to carry out those purposes.

Requirements for Disclosure of Nonpublic Personal Financial Information

If you are disclosing nonpublic personal financial information for a business purpose, you must comply with the following requirements outlined in § 7.12 of the Rhode Island Code of Regulations:

  1. You must provide the consumer with an initial notice and opt-out notice;
  2. You must give the consumer a reasonable opportunity to opt-out of the disclosure;
  3. The consumer must not opt-out.

Conclusion

In general, you cannot skip obtaining consent to disclose personal information for a business purpose in Rhode Island. However, there are exceptions to the consent requirements outlined in §§ 7.15 and 7.17 of the Rhode Island Code of Regulations. If you are disclosing nonpublic personal financial information for a business purpose, you must comply with the requirements outlined in § 7.12 of the Rhode Island Code of Regulations.

Jurisdiction

Rhode Island