(a) Special rule
for solicitation for purposes of marketing.
(1) Any person that receives from another
person related to it by common ownership or affiliated by corporate
control a communication of information that would be a consumer report,
but for clauses (i), (ii), and (iii) of section 603(d)(2)(A), may
not use the information to make a solicitation for marketing purposes
to a consumer about its products or services, unless—
(A) it is clearly and conspicuously
disclosed to the consumer that the information may be communicated
among such persons for purposes of making such solicitations to the
consumer; and
(B) the consumer
is provided an opportunity and a simple method to prohibit the making
of such solicitations to the consumer by such person.
(2) (A) The notice
required under paragraph (1) shall allow the consumer the opportunity
to prohibit all solicitations referred to in such paragraph, and may
allow the consumer to choose from different options when electing
to prohibit the sending of such solicitations, including options regarding
the types of entities and information covered, and which methods of
delivering solicitations the consumer elects to prohibit.
(B) Notwithstanding subparagraph (A),
the notice required under paragraph (1) shall be clear, conspicuous,
and concise, and any method provided under paragraph (1)(B) shall
be simple. The regulations prescribed to implement this section shall
provide specific guidance regarding how to comply with such standards.
(3) (A)
The election of a consumer pursuant to paragraph (1)(B) to prohibit
the making of solicitations shall be effective for at least 5 years,
beginning on the date on which the person receives the election of
the consumer, unless the consumer requests that such election be revoked.
(B) At such time as the election
of a consumer pursuant to paragraph (1)(B) is no longer effective,
a person may not use information that the person receives in the manner
described in paragraph (1) to make any solicitation for marketing
purposes to the consumer, unless the consumer receives a notice and
an opportunity, using a simple method, to extend the opt-out for another
period of at least 5 years, pursuant to the procedures described in
paragraph (1).
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(4) This section shall not apply to a person—
(A) using information to make a solicitation
for marketing purposes to a consumer with whom the person has a pre-existing
business relationship;
(B) using
information to facilitate communications to an individual for whose
benefit the person provides employee benefit or other services pursuant
to a contract with an employer related to and arising out of the current
employment relationship or status of the individual as a participant
or beneficiary of an employee benefit plan;
(C) using information to perform services
on behalf of another person related by common ownership or affiliated
by corporate control, except that this subparagraph shall not be construed
as permitting a person to send solicitations on behalf of another
person, if such other person would not be permitted to send the solicitation
on its own behalf as a result of the election of the consumer to prohibit
solicitations under paragraph (1)(B);
(D) using information in response to
a communication initiated by the consumer;
(E) using information in response to
solicitations authorized or requested by the consumer; or
(F) if compliance with this section
by that person would prevent compliance by that person with any provision
of State insurance laws pertaining to unfair discrimination in any
State in which the person is lawfully doing business.
(5) This subsection shall not prohibit
the use of information to send a solicitation to a consumer if such
information was received prior to the date on which persons are required
to comply with regulations implementing this subsection.
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(b) Notice for other purposes permissible. A notice or other disclosure under this section may be coordinated
and consolidated with any other notice required to be issued under
any other provision of law by a person that is subject to this section,
and a notice or other disclosure that is equivalent to the notice
required by subsection (a), and that is provided by a person described
in subsection (a) to a consumer together with disclosures required
by any other provision of law, shall satisfy the requirements of subsection
(a).
(c) User requirements. Requirements
with respect to the use by a person of information received from another
person related to it by common ownership or affiliated by corporate
control, such as the requirements of this section, constitute requirements
with respect to the exchange of information among persons affiliated
by common ownership or common corporate control, within the meaning
of section 625(b)(2).
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(d) Definitions. For purposes of this section,
the following definitions shall apply:
(1) The term “pre-existing business relationship”
means a relationship between a person, or a person’s licensed agent,
and a consumer, based on—
(A) a financial contract between a person
and a consumer which is in force;
(B) the purchase, rental, or lease by the consumer of that person’s
goods or services, or a financial transaction (including holding an
active account or a policy in force or having another continuing relationship)
between the consumer and that person during the 18-month period immediately
preceding the date on which the consumer is sent a solicitation covered
by this section;
(C) an inquiry
or application by the consumer regarding a product or service offered
by that person, during the 3-month period immediately preceding the
date on which the consumer is sent a solicitation covered by this
section; or
(D) any other pre-existing
customer relationship defined in the regulations implementing this
section.
(2) The term
“solicitation” means the marketing of a product or service initiated
by a person to a particular consumer that is based on an exchange
of information described in subsection (a), and is intended to encourage
the consumer to purchase such product or service, but does not include
communications that are directed at the general public or determined
not to be a solicitation by the regulations prescribed under this
section.
[15 USC 1681s-3. As added by act of Dec.
4, 2003 (117 Stat. 1980).]
