How does the FACT Act regulate sharing of consumer information with affiliates for marketing?

• A. It restricts affiliate sharing for marketing without consumer opt-out and requires disclosures and consent for certain sharing with non-affiliates.
• B. It allows unrestricted affiliate sharing for marketing.
• C. It bans all sharing of consumer information with affiliates.
• D. It only applies to non-marketing data.

Answer: (A)

The important idea here is that the FACT Act gives consumers more control over how their information is shared for marketing, specifically with affiliates. It requires that financial institutions provide clear disclosures about sharing practices and give consumers a real option to opt out of having their information shared with affiliates for marketing. If the consumer opts out, affiliate sharing for marketing must not occur. For sharing with non-affiliates for marketing, the act also imposes disclosure requirements and, in some cases, consent before such sharing happens. So the best answer captures both the opt-out protection for affiliate marketing and the need for disclosures and consent considerations when sharing with non-affiliates.