The Fair Credit Reporting Act (FCRA) Section 624 states that if a person receives certain information about consumer eligibility from an affiliate, they cannot use that information to make requests to the consumer about their products or services, unless they are notified and given the opportunity to opt out. The Federal Council for the Examination of Financial Institutions (FFIEC) recently approved the examination procedures for the Affiliate Marketing Rule of Article 624 of the FCRA, which is implemented by the Board of Governors of the Federal Reserve System through Regulation V. The consumer's decision to opt out prohibits any covered affiliate subject to the scope of the exclusion notice from using eligibility information received from another affiliate to make consumer requests. A third category of information is also governed by the Affiliate Marketing Rule: the information that consumers report receiving from a third party.
If the affiliates providing the notice do not share a common name, the notice must separately identify each affiliate by name or identify each of the common names used by those affiliates. The renewal notice must be submitted by the subsidiary that filed the previous notice of exclusion. This will not create any conflict with the corresponding CFPB standard, since the Commission's Affiliate Marketing Rule and the CFPB standard are substantially similar and impose the same obligations and exceptions on the entities they protect. The exception of constructive sharing offers insurers and other companies considerable flexibility when it comes to using affiliate data for marketing purposes. The consumer is provided with a reasonable opportunity and a reasonable and simple method to exclude or prohibit the covered subsidiary from using eligibility information to make requests for consumer marketing purposes; and. The Federal Trade Commission (“FTC” or “Commission”) is issuing a final rule (“Final Rule”) to modify its Affiliate Marketing Rule to adapt it to the changes introduced in the FCRA by the Dodd-Frank Act. The Affiliate Marketing Rule and related provisions of the FCRA are not simple to operate.
Therefore, the Commission certifies that the amendment to the Affiliate Marketing Rule will not have a significant economic impact on a significant number of small businesses. The affiliate marketing notice is in addition to the privacy notices already required and would be a mandatory second notice and an opportunity to opt out. B) Any other transaction between the consumer and the covered subsidiary or its affiliates, as described in the notice. E) The covered subsidiary is one of the main participants in a swap that holds securities or other assets as collateral for a loan granted to the consumer, even if the covered subsidiary did not grant the loan or does not affect any transaction on behalf of the consumer; or F) The covered subsidiary is an exchange agency that regularly carries out or participates in exchange transactions with or for a consumer, even if the covered subsidiary does not own any consumer assets.
