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Can I skip obtaining consent to sell personal information in West Virginia? What are the requirements?

October 18, 2023

Based on the documents provided, there are certain exceptions to obtaining consent for the sale of personal information in West Virginia.

According to WVCS 114-57-14, a licensee may disclose nonpublic personal financial information without obtaining consent in the following circumstances:

With the consent or at the direction of the consumer, provided that the consumer has not revoked the consent or direction;
To protect the confidentiality or security of a licensee’s records pertaining to the consumer, service, product or transaction;
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 the extent specifically permitted or required under other provisions of law and in accordance with the federal Right to Financial Privacy Act of 1978 (12 U.S.C. 3401 et seq.), to law enforcement agencies, self-regulatory organizations or for an investigation on a matter related to public safety;
To a consumer reporting agency in accordance with the federal Fair Credit Reporting Act (15 U.S.C. 1681 et seq.);
From a consumer report reported by a consumer reporting agency;
In connection with a proposed or actual sale, merger, transfer or exchange of all or a portion of a business or operating unit if the disclosure of nonpublic personal financial information concerns solely consumers of the business or unit;
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; or
To respond to judicial process or government regulatory authorities having jurisdiction over a licensee for examination, compliance or other purposes as authorized by law; or
For purposes related to the replacement of a group benefit plan, a group health plan or a group welfare plan.

However, it is important to note that there are limitations on the redisclosure and reuse of nonpublic personal financial information (WVCS 114-57-10) and that prior consent may still be required in certain circumstances (WVCS 126-094-18).

Additionally, WVCS 114-57-9 requires a licensee to provide an initial notice and opt-out notice to the consumer before disclosing any nonpublic personal financial information to a nonaffiliated third party. The consumer must be given a reasonable opportunity to opt-out of the disclosure, and the licensee must comply with the consumer’s opt-out request.

Therefore, it is recommended that you review the specific circumstances of your situation and consult with legal counsel to determine whether obtaining consent is necessary.

^[1.2] provides an exception to opt-out requirements for disclosure of nonpublic personal financial information for service providers and joint marketing. ^[1.3] provides information on when authorization is required for disclosure of nonpublic personal health information. ^[2.1] provides information on prior consent for disclosure required. ^[1.5] provides limits on disclosure of nonpublic personal financial information to nonaffiliated third parties. ^[1.6] provides information to be included in privacy notices.

Source(s):

Jurisdiction

West Virginia

Privacy