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Can I use third-party marketing automation tools that collect personal information in Tennessee? What are the requirements?
Yes, you can use third-party marketing automation tools that collect personal information in Tennessee, but you must comply with the state’s regulations on the disclosure of nonpublic personal information.
Requirements for Using Third-Party Marketing Automation Tools in Tennessee
According to TNRR Section 0780-1-72-.11, a licensee may not disclose any nonpublic personal information about a consumer to a nonaffiliated third party unless the licensee has provided the consumer with an initial notice and an opt-out notice, and the consumer has not opted out. However, there are exceptions to this rule, such as when the disclosure is necessary to effect, administer, or enforce a transaction that a consumer requests or authorizes, or when the disclosure is made to a service provider or for joint marketing purposes [1.1][1.6].
If you are disclosing personal information to a nonaffiliated third party for joint marketing purposes, you must enter into a contractual agreement with the third party that prohibits them from disclosing or using the information other than to carry out the purposes for which you disclosed the information [1.1].
If you are disclosing personal information to a service provider, you must also enter into a contractual agreement with the third party that prohibits them from disclosing or using the information other than to carry out the purposes for which you disclosed the information, including use under an exception in Sections 0780-1-72-.15 or 0780-1-72-.16 in the ordinary course of business to carry out those purposes [1.1].
Therefore, if you are using third-party marketing automation tools that collect personal information in Tennessee, you must ensure that you comply with the state’s regulations on the disclosure of nonpublic personal information. You must provide consumers with an initial notice and an opt-out notice, unless an exception applies, and you must enter into contractual agreements with any third parties to whom you disclose personal information.
Additional Information
Please note that there are additional regulations in Tennessee that may apply to the use of third-party marketing automation tools, such as limits on sharing account number information for marketing purposes [1.3] and limits on redisclosure and reuse of nonpublic personal information [1.4]. However, these regulations may not be directly relevant to your query.
Source(s):
- [1.1] EXCEPTION TO OPT OUT REQUIREMENTS FOR DISCLOSURE OF NONPUBLIC PERSONAL INFORMATION FOR SERVICE PROVIDERS AND JOINT MARKETING
- [1.3] LIMITS ON SHARING ACCOUNT NUMBER INFORMATION FOR MARKETING PURPOSES
- [1.4] LIMITS ON REDISCLOSURE AND REUSE OF NONPUBLIC PERSONAL INFORMATION
- [1.6] EXCEPTIONS TO NOTICE AND OPT OUT REQUIREMENTS FOR DISCLOSURE OF NONPUBLIC PERSONAL INFORMATION FOR PROCESSING AND SERVICING TRANSACTIONS
Jurisdiction
Tennessee