Can I use third-party marketing automation tools that collect personal information in Texas? What are the requirements?

Based on the provided context documents, there are several regulations in Texas that govern the collection and use of personal information for marketing purposes.

Firstly, under 28 TXAC 22.16, a covered entity is prohibited from disclosing a policy number or similar form of access number or access code for a consumer’s policy or transaction account to any nonaffiliated third party for use in telemarketing, direct mail marketing, or other marketing through electronic mail to the consumer, unless certain exceptions apply. One such exception is if the covered entity discloses the information to a service provider, including another covered entity, solely for the purpose of marketing the sharing covered entity’s own products or services, so long as the receiving covered entity is not authorized to initiate charges directly to the account.

Secondly, under 28 TXAC 22.17, the opt-out requirements for disclosure of nonpublic personal financial information for service providers and joint marketing do not apply when a covered entity provides nonpublic personal financial information to a nonaffiliated third party to perform services for the covered entity or functions on the covered entity’s behalf, if the covered entity provides the initial notice in accordance with §22.8 of this title 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 covered entity disclosed the information.

Thirdly, under 16 TXAC 97.53, a service company must maintain at least the following minimum general liability insurance coverages at all times: $25,000 per occurrence or $50,000 aggregate. Insurance must be obtained from an admitted company or an eligible surplus lines carrier, as defined in the Texas Insurance Code, Chapter 981, or other insurance companies that are rated by A.M. Best Company as B+ or higher.

Based on the above regulations, it is possible to use third-party marketing automation tools that collect personal information in Texas, but only if certain requirements are met. Specifically, the covered entity must provide an initial notice to the consumer in accordance with the regulations, enter 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 covered entity disclosed the information, and maintain the required minimum general liability insurance coverage.

It is important to note that there may be additional regulations or requirements that apply depending on the specific circumstances of the marketing automation tools and the personal information being collected. It is recommended that you consult with a legal professional to ensure compliance with all applicable regulations.

Therefore, to answer your question, you can use third-party marketing automation tools that collect personal information in Texas, but only if you comply with the regulations outlined above.

Jurisdiction

Texas

• Privacy