Does FACTA limit sharing consumer information with affiliates for marketing?

• A. Yes; consumers must be given an opt-out option to share information with affiliates for marketing.
• B. No restrictions.
• C. Only for non-affiliates.
• D. Only for domestic affiliates.

Answer: (A)

The main idea is consumer privacy controls over how financial information is used for marketing. FACTA requires that consumers be given a reasonable opt-out option before a financial institution can share their nonpublic personal information with its affiliates for marketing purposes. This means you have a say in whether your data can be used to market by the institution’s affiliated companies. If you opt out, the sharing for marketing must stop; if you don’t opt out, sharing is allowed. The other options aren’t accurate because FACTA does impose restrictions on affiliate sharing for marketing, it isn’t limited only to non-affiliates, and it isn’t restricted to domestic affiliates.