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Can I use third-party email marketing tools that collect personal information in South Dakota? What are the requirements?

Use of Third-Party Email Marketing Tools in South Dakota

If you are using third-party email marketing tools that collect personal information in South Dakota, you must comply with the state’s laws and regulations regarding the sharing and disclosure of nonpublic personal financial information.

Limits on Disclosure of Nonpublic Personal Financial Information to Nonaffiliated Third Parties

Under SDAR 20:06:45:10, a licensee may not disclose any nonpublic personal financial information about a consumer to a nonaffiliated third party unless certain conditions are met. One of these conditions is that the licensee has given the consumer a reasonable opportunity, before it discloses the information to the nonaffiliated third party, to opt out of the disclosure. The licensee must also provide the consumer with an initial notice and an opt-out notice.

Limits on Redisclosure and Reuse of Nonpublic Personal Financial Information

SDAR 20:06:45:11 provides limits on redisclosure and reuse of nonpublic personal financial information. If a licensee receives nonpublic personal financial information from a nonaffiliated financial institution under an exception in § 20:06:45:14 or 20:06:45:15, 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, and the licensee may disclose and use the information pursuant to an exception in § 20:06:45:14 or 20:06:45:15, in the ordinary course of business to carry out the activity covered by the exception under which the licensee received the information.

Conclusion

If you are using third-party email marketing tools that collect personal information in South Dakota, you must comply with the state’s laws and regulations regarding the sharing and disclosure of nonpublic personal financial information. You must provide consumers with an initial notice and an opt-out notice before disclosing any nonpublic personal financial information to a nonaffiliated third party. Additionally, if you receive nonpublic personal financial information from a nonaffiliated financial institution, your disclosure and use of that information is limited.

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Source(s):
Jurisdiction

South Dakota