(a) General rule.
(1) The opt-out requirements in sections 1016.7 and 1016.10 of this part do
not apply when you provide nonpublic personal information to a nonaffiliated
third party to perform services for you or functions on your behalf, if
you:
(i) Provide the initial notice in accordance with section 1016.4;
and
(ii) 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 you disclosed the information, including use under
an exception in section 1016.14 or section 1016.15 in the ordinary course of
business to carry out those purposes.
(2) Example. If you disclose nonpublic personal information under this section to a
financial institution with which you perform joint marketing, your
contractual agreement with that institution meets the requirements of
paragraph (a)(1)(ii) of this section if it prohibits the institution from
disclosing or using the nonpublic personal information except as necessary to
carry out the joint marketing or under an exception in section 1016.14 or
section 1016.15 in the ordinary course of business to carry out that joint
marketing.
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(b) Service may include joint marketing. The services a nonaffiliated third party performs for you under
paragraph (a) of this section may include marketing of your own products or
services or marketing of financial products or services offered pursuant to
joint agreements between you and one or more financial
institutions.
(c) Definition of joint agreement. For purposes of this section, joint agreement means a written contract
pursuant to which you and one or more financial institutions jointly offer,
endorse, or sponsor a financial product or service.
