Sec. 3. Obligations with respect to the collection and disclosure of nonpublic personal information
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Section 502 of the Gramm-Leach-Bliley Act ( 15 U.S.C. 6802 ) is amended— in the heading, by striking and inserting DISCLOSURES OF ; THE COLLECTION AND DISCLOSURE OF NONPUBLIC in subsection (a)— by inserting before disclose the following: collect nonpublic personal information from an individual with whom such financial institution has a customer or consumer relationship or ; and by striking has provided to the consumer and inserting has provided to such individual ; and in subsection (b), by amending paragraph
(1)to read as follows: A financial institution may not collect nonpublic personal information from an individual with whom such financial institution has a customer or consumer relationship or disclose nonpublic personal information to a nonaffiliated third party unless the individual with whom such financial institution has a consumer or customer relationship is given the opportunity, before the time that such information is initially collected or disclosed, to direct that such information not be collected or disclosed to such third party. ; in subsection (d)— by striking of a consumer and inserting of an individual with whom such financial institution has a customer or consumer relationship ; and by striking telemarketing, direct mail marketing, or other marketing through electronic mail to the consumer and inserting marketing to the individual with whom such financial institution has a customer or consumer relationship, regardless of medium ; in subsection (e)— by striking
(e)and all that follows through the end of paragraph
(2)and inserting the following: General Exceptions.— The general collection and disclosure procedures provided in subsections
(a)and
(b)shall not prohibit or otherwise limit the collection or disclosure of nonpublic personal information— if the collection or disclosure is— necessary to effect, administer, or enforce a transaction requested or authorized by the individual with whom the financial institution has a customer or consumer relationship; in connection with servicing or processing a financial product or service requested or authorized by the individual with whom the financial institution has a customer or consumer relationship; with the consent or at the direction of the individual with whom the financial institution has a customer or consumer relationship, and the financial institution obtains, from such individual, evidence of such individual’s authorization for such collection or disclosure; or in connection with— maintaining or servicing the account, with such financial institution or with another entity as part of a private label or co-brand credit card program or an extension of credit on behalf of such entity, of an individual with whom such financial institution or entity has a customer or consumer relationship; a proposed or actual securitization, secondary market sale (including sales of servicing rights), or similar transaction related to an account or a transaction of the individual which whom such entity or financial institution has a customer or consumer relationship; or to a nonaffiliated third party to perform services for, or functions on behalf of, the financial institution, including marketing of the financial institution's own products or services, or financial products or services offered pursuant to joint agreements between two or more financial institutions that comply with the requirements imposed by the regulations prescribed under section 504, if the financial institution fully discloses the providing of such information and enters into a contractual agreement with the third party that requires the third party to maintain the confidentiality of such information; ; in paragraph (3)— in subparagraph (A)— by striking or security and inserting security, or integrity ; by striking pertaining to the consumer and inserting pertaining to the individual with whom the financial institution has a customer or consumer relationship ; by inserting before the semicolon the following: , as well as the systems, processes, and services that handle such records ; in subparagraph (B), by inserting after fraud, the following: identity theft, ; in subparagraph (C), by striking for resolving customer disputes or inquiries and inserting for resolving disputes or inquires relating to individuals with whom the financial institution has a customer or consumer relationship ; in subparagraph (D), by striking relating to the consumer and inserting relating to the individual with whom the financial institution has a customer or consumer relationship ; and in subparagraph (E), by striking behalf of the consumer and inserting behalf of the individual with whom the financial institution has a customer or consumer relationship ; and in paragraph (7)— by striking or exchange and inserting exchange, or similar transaction ; by striking consumers of such business or unit and inserting individuals with whom such business or unit have a customer or consumer relationship ; and by inserting collection or before disclosure ; by adding at the end the following: If a financial institution is required to terminate sharing nonpublic personal information, of an individual with whom such financial institution has a customer or consumer relationship, with a nonaffiliated third party— the financial institution shall notify the nonaffiliated third party that the sharing has been terminated and that such nonaffiliated third party may not share any nonpublic information of the individual already received from the financial institution; and upon receipt of a notice described under subparagraph (A), the nonaffiliated third party may not share any nonpublic information of such individual already received from the financial institution. The agencies referred to in section 504 shall issue rules to establish the requirements for notices under paragraph (1), including the form of such notices, taking into account any privacy risks posed by such notices. A financial institution may not collect from an individual with whom such financial institution has a customer or consumer relationship account credentials such individual uses to access an account at a nonaffiliated third party that is a financial institution unless, prior to collecting the consumer account credentials— the financial institution clearly and conspicuously discloses to the consumer, in a form permitted by the regulations prescribed under section 504— that the financial institution is collecting such account credentials; how such credentials will be used by the financial institution; and whether such credentials may be disclosed to a nonaffiliated third party; and such individual is given an opportunity to direct that such credentials not be collected or to direct that such credentials not be disclosed to any nonaffiliated third party. . Section 509(3)(D) of the Gramm-Leach-Bliley Act ( 15 U.S.C. 6809(3)(D) ) is amended by striking section 502(e)(1)(C) and inserting section 502(e)(1)(D)(ii) .
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Sec. 3
Obligations with respect to the collection and disclosure of nonpublic personal information
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