N.Y. Comp. Codes R. & Regs. tit. 11 § 420.6

Current through Register Vol. 46, No. 45, November 2, 2024

Section 420.6 - Information to be included in privacy notices

(a) General rule. The initial, annual, and revised privacy notices that a licensee provides under sections 420.4, 420.5 and 420.8 of this Part shall include each of the following items of information that applies to the licensee and to the consumers to whom the licensee sends its privacy notice, in addition to any other information the licensee wishes to provide:

(1) the categories of nonpublic personal financial information that the licensee collects;

(2) the categories of nonpublic personal financial information that the licensee discloses;

(3) the categories of affiliates and nonaffiliated third parties to whom the licensee discloses nonpublic personal financial information, other than those parties to whom the licensee discloses information under section 420.14 or 420.15 of this Part;

(4) the categories of nonpublic personal financial information about the licensee's former customers that the licensee discloses and the categories of affiliates and nonaffiliated third parties to whom the licensee discloses nonpublic personal financial information about the licensee's former customers, other than those parties to whom the licensee discloses information under section 420.14 or 420.15 of this Part;

(5) if a licensee discloses nonpublic personal financial information to a nonaffiliated third party under section 420.13 of this Part (and no other exception in section 420.14 or 420.15 of this Part applies to that disclosure), a separate description of the categories of information the licensee discloses and the categories of third parties with whom the licensee has contracted;

(6) an explanation of the consumer's right under section 420.10(a) of this Part to opt out of the disclosure of nonpublic personal financial information to nonaffiliated third parties, including the methods by which the consumer may exercise that right at that time;

(7) any disclosures that the licensee makes under section 603(d)(2)(A)(iii) of the Federal Fair Credit Reporting Act (15 U.S.C. 1681 a [d][2][A][iii]) (that is, notices regarding the ability to opt out of disclosures of information among affiliates);

(8) the licensee's policies and practices with respect to protecting the confidentiality and security of nonpublic personal information; and

(9) any disclosure that the licensee makes under subdivision (b) of this section.

(b) Description of parties subject to exceptions. If a licensee discloses nonpublic personal financial information as authorized under section 420.14 or 420.15 of this Part, the licensee is not required to list those exceptions in the initial or annual privacy notices required by sections 420.4 and 420.5 of this Part. When describing the categories of parties to whom disclosure is made, the licensee is required to state only that it makes disclosures to other affiliated or nonaffiliated third parties, as applicable, as permitted by law.

(c) Examples.

(1) Categories of nonpublic personal financial information that the licensee collects. A licensee satisfies the requirement to categorize the nonpublic personal financial information that it collects if the licensee categorizes it according to the source of the information, as applicable:

(i) information from the consumer;

(ii) information about the consumer's transactions with the licensee or its affiliates;

(iii) information about the consumer's transactions with nonaffiliated third parties; and

(iv) information from a consumer reporting agency.

(2) Categories of nonpublic personal financial information a licensee discloses.

(i) A licensee satisfies the requirement to categorize nonpublic personal financial information it discloses if the licensee categorizes the information according to source, as described in paragraph (1) of this subdivision, as applicable, and provides a few examples to illustrate the types of information in each category. These might include:

(a) information from the consumer, including application information, such as assets and income and identifying information, such as name, address and social security number;

(b) transaction information, such as information about balances, payment history and parties to the transaction; and

(c) information from consumer reports, such as a consumer's creditworthiness and credit history.

(ii) A licensee does not adequately categorize the information that it discloses if the licensee uses only general terms, such as transaction information about the consumer.

(iii) If a licensee reserves the right to disclose all of the nonpublic financial information about consumers that it collects, the licensee may simply state that fact without describing the categories or examples of nonpublic personal financial information that the licensee discloses.

(3) Categories of affiliates and nonaffiliated third parties to whom the licensee discloses.

(i) A licensee satisfies the requirement to categorize the affiliates and nonaffiliated third parties to which the licensee discloses nonpublic personal financial information about consumers if the licensee identifies the types of businesses in which they engage.

(ii) Types of businesses may be described by general terms only if the licensee uses a few illustrative examples of significant lines of business. For example, a licensee may use the term financial products or services if it includes appropriate examples of significant lines of businesses, such as life insurer, automobile insurer, consumer banking or securities brokerage.

(iii) A licensee also may categorize the affiliates and nonaffiliated third parties to which it discloses nonpublic personal financial information about consumers using more detailed categories.

(4) Disclosures under exception for service providers and joint marketers. If a licensee discloses nonpublic personal financial information under the exception in section 420.13 of this Part to a nonaffiliated third party in order to market products or services that the licensee offers alone or jointly with another financial institution, the licensee satisfies the disclosure requirement of paragraph (a)(5) of this section if it:

(i) lists the categories of nonpublic personal financial information the licensee discloses, using the same categories and examples the licensee used to meet the requirements of paragraph (a)(2) of this section, as applicable; and

(ii) states whether the third party is:

(a) a service provider that performs marketing services on the licensee's behalf or on behalf of the licensee and another financial institution; or

(b) a financial institution with whom the licensee has a joint marketing agreement.

(5) Simplified notices. If a licensee does not disclose, and does not wish to reserve the right to disclose, nonpublic personal financial information about customers or former customers to affiliates or nonaffiliated third parties except as authorized under sections 420.14 and 420.15 of this Part, the licensee may simply state that fact, in addition to the information the licensee shall provide under paragraphs (a)(1), (8), (9), and subdivision (b) of this section.

(6) Confidentiality and security. A licensee describes its policies and practices with respect to protecting the confidentiality and security of nonpublic personal financial information if the licensee does both of the following:

(i) describes in general terms who is authorized to have access to the information; and

(ii) states whether the licensee has security practices and procedures in place to ensure the confidentiality of the information in accordance with the licensee's policy. The licensee is not required to describe technical information about the safeguards it uses.

(d) Short-form initial notice with opt out notice for noncustomers.

(1) The licensee may satisfy the initial notice requirements in sections 420.4(a)(2), 420.7(b) and (c) of this Part for a consumer who is not a customer by providing a short form initial notice at the same time as the licensee delivers an opt out notice as required in section 420.7 of this Part.

(2) A short form initial notice shall:

(i) be clear and conspicuous;

(ii) state that a licensee's privacy notice is available upon request; and

(iii) explain a reasonable means by which the consumer may obtain that notice.

(3) The licensee shall deliver its short form notice according to section 420.9 of this Part. A licensee is not required to deliver its privacy notice with its short-form initial notice. A licensee may instead simply provide the consumer with a reasonable means to obtain the licensee's privacy notice. If a consumer who receives the licensee's short-form notice requests the licensee's privacy notice, the licensee shall deliver its privacy notice according to section 420.9 of this Part.

(4) Examples of obtaining privacy notice. The licensee provides a reasonable means by which a consumer may obtain a copy of its privacy notice if the licensee:

(i) provides a toll-free telephone number the consumer may call to request the notice; or

(ii) for a consumer who conducts business in person at the licensee's office, maintains copies of the notice on hand that the licensee provides to the consumer immediately upon request.

(e) Future disclosures. The licensee's notice may include:

(1) categories of nonpublic personal financial information that the licensee reserves the right to disclose in the future, but does not currently disclose; and

(2) categories of affiliates or nonaffiliated third parties to whom the licensee reserves the right in the future to disclose, but to whom it does not currently disclose, nonpublic personal financial information.

(f) Sample clauses. Sample clauses illustrating some of the notice content required by this section are included in section 420.25 of this Part.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 420.6