How does the FACT Act regulate affiliate versus non-affiliate marketing of consumer information?

• A. It restricts sharing with affiliates for marketing purposes without consumer opt-out and governs how information may be shared with non-affiliates for marketing, requiring consent in many cases.
• B. It allows unlimited marketing sharing with affiliates.
• C. It prohibits any form of marketing to consumers.
• D. It requires opt-out for non-affiliates only.

Answer: (A)

The concept being tested is how the FACT Act protects consumer privacy differently for affiliate versus non-affiliate marketing of information. The Act strengthens controls so you can’t market to others using consumer data without giving the consumer a say. For affiliate marketing, sharing information for marketing purposes is restricted unless the consumer has opted out of that sharing. For non-affiliates (unaffiliated third parties), the Act generally requires consumer consent (often an opt-in) before marketing information can be shared or used. This setup gives consumers more control: they can block affiliate marketing by opting out, and they must approve marketing disclosures to non-affiliates.

The other choices don’t fit because something like unlimited affiliate sharing is not allowed, the Act doesn’t prohibit all marketing to consumers, and it doesn’t restrict only non-affiliate sharing to opt-out without also addressing affiliate sharing.