44-7701. Retention of customer information; transmission to third parties prohibited; enforcement; civil penalties

426 words·~2 min read·/az/title-44/44-7701

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. A retailer may retain and use information from a customer's driver license or other state issued identification only for the purpose of verifying the customer's age, for the purpose of establishing a customer's identity, for the purpose of confirming that the customer is properly licensed to operate a motor vehicle, recreational vehicle, truck or motorcycle on public roads or for the purpose of disclosing the information to any of the following:

1. The department of transportation.

2. A person licensed pursuant to title 20.

3. A notary public pursuant to section 41-319.

4. A business for the purpose of any of the following:

(a)Verifying a check at the point of sale for the purchase of a good or service by check.

(b)Evaluating creditworthiness.

(c)Detecting or reducing the risk of fraud, abuse, identity theft or other crimes.

(d)Conducting account collection activities.

(e)Confirming that the customer has met the motor vehicle financial responsibility requirements pursuant to section 28-4135.

5. Financial institutions, if permitted by federal law.

B. Except as provided in this section, the retailer shall not transmit the information to a third party for any purpose, except that a retailer may disclose the information to a law enforcement agency for the purposes of a law enforcement investigation.

C. This section does not prohibit the use of the information in a court proceeding or administrative proceeding.

D. This section may be enforced by either of the following:

1. A county attorney in the county in which the violation occurs. If a violation occurs by the same retailer in multiple counties, a county attorney in a county in which a violation of this section occurred, after filing a notice of intent to enforce this section, may send a copy of the notice to the county attorney in each county in which a violation occurred and may request that the actions be consolidated. A county attorney may obtain injunctive relief and recover costs, attorney fees and the penalties prescribed in subsection E of this section.

2. The attorney general. An act or practice in violation of this section constitutes an unlawful practice pursuant to section 44-1522. The civil penalty prescribed by subsection E of this section is in lieu of the penalty prescribed by section 44-1531.

E. A civil penalty shall be imposed for each violation of subsection A of this section. The civil penalty shall not exceed:

1. Five hundred dollars for a first violation.

2. One thousand dollars for a second violation.

3. Five thousand dollars for a third or subsequent violation.