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Can I use third-party social media tools that collect personal information in Alabama? What are the requirements?

Based on the additional context documents, if you are collecting nonpublic personal financial information through third-party social media tools in Alabama, you must comply with the Alabama Code Title 8, Chapter 1, Article 8, Part 1, which regulates the collection, use, and disclosure of nonpublic personal financial information.

Requirements for collecting nonpublic personal financial information in Alabama

Under the Alabama Code Title 8, Chapter 1, Article 8, Part 1, you must provide an initial, annual, and revised privacy notice that includes the following information:

  1. The categories of nonpublic personal financial information that you collect.
  2. The categories of nonpublic personal financial information that you disclose.
  3. The categories of affiliates and nonaffiliated third parties to whom you disclose nonpublic personal financial information, other than those parties to whom you disclose information under Sections 15 and 16.
  4. The categories of nonpublic personal financial information about your former customers that you disclose and the categories of affiliates and nonaffiliated third parties to whom you disclose nonpublic personal financial information about your former customers, other than those parties to whom you disclose information under Sections 15 and 16.
  5. If you disclose nonpublic personal financial information to a nonaffiliated third party under Section 14 (and no other exception in Sections 15 and 16 applies to that disclosure), a separate description of the categories of information you disclose and the categories of third parties with whom you have contracted.
  6. An explanation of the consumer’s right under Section 11A to opt out of the disclosure of nonpublic personal financial information to nonaffiliated third parties, including the methods by which the consumer may exercise that right at that time.
  7. Any disclosures that you make under Section 603(d)(2)(A)(iii) of the federal Fair Credit Reporting Act (15 U.S.C. §1681a(d)(2)(A)(iii)) (that is, notices regarding the ability to opt out of disclosures of information among affiliates).
  8. Your policies and practices with respect to protecting the confidentiality and security of nonpublic personal information.
  9. Any disclosure that you make under Subsection B of this section.

Limits on Redisclosure and Reuse of Nonpublic Personal Financial Information

If you receive nonpublic personal financial information from a nonaffiliated financial institution under an exception in Sections 15 or 16 of the Alabama Code Title 8, Chapter 1, Article 8, Part 1, your disclosure and use of that information is limited. You may disclose the information to the affiliates of the financial institution from which you received the information. You may also disclose the information to your affiliates, but your affiliates may, in turn, disclose and use the information only to the extent that you may disclose and use the information. You may disclose and use the information pursuant to an exception in Sections 15 or 16 of this regulation, in the ordinary course of business to carry out the activity covered by the exception under which you received the information.

Exceptions to Notice and Opt Out Requirements for Disclosure of Nonpublic Personal Financial Information

There are exceptions to the notice and opt-out requirements for disclosure of nonpublic personal financial information. For example, the opt-out requirements in Sections 8 and 11 do not apply 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 Section 5 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 Sections 15 or 16 in the ordinary course of business to carry out those purposes [1.3].

Additionally, the requirements for initial notice, opt-out, and service providers and joint marketing do not apply if the licensee discloses nonpublic personal financial information as necessary to effect, administer, or enforce a transaction that a consumer requests or authorizes, or in connection with servicing or processing an insurance product or service that a consumer requests or authorizes [1.5].

Conclusion

Based on the provided context documents, if you are collecting nonpublic personal financial information through third-party social media tools in Alabama, you must comply with the Alabama Code Title 8, Chapter 1, Article 8, Part 1, which regulates the collection, use, and disclosure of nonpublic personal financial information. You must provide an initial, annual, and revised privacy notice that includes specific information. Additionally, there are exceptions to the notice and opt-out requirements for disclosure of nonpublic personal financial information, such as 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, or when the licensee discloses nonpublic personal financial information as necessary to effect, administer, or enforce a transaction that a consumer requests or authorizes, or in connection with servicing or processing an insurance product or service that a consumer requests or authorizes.

Source(s):
Jurisdiction

Alabama