Sec. 1681s-3. Affiliate sharing

(a) Special rule for solicitation for purposes of marketing
(1) Notice
Any person that receives from another person related to it by
common ownership or affiliated by corporate control a
communication of information that would be a consumer report, but
for clauses (i), (ii), and (iii) of section 1681a(d)(2)(A) of
this title, may not use the information to make a solicitation
for marketing purposes to a consumer about its products or
services, unless -
(A) it is clearly and conspicuously disclosed to the consumer
that the information may be communicated among such persons for
purposes of making such solicitations to the consumer; and
(B) the consumer is provided an opportunity and a simple
method to prohibit the making of such solicitations to the
consumer by such person.
(2) Consumer choice
(A) In general
The notice required under paragraph (1) shall allow the
consumer the opportunity to prohibit all solicitations referred
to in such paragraph, and may allow the consumer to choose from
different options when electing to prohibit the sending of such
solicitations, including options regarding the types of
entities and information covered, and which methods of
delivering solicitations the consumer elects to prohibit.
(B) Format
Notwithstanding subparagraph (A), the notice required under
paragraph (1) shall be clear, conspicuous, and concise, and any
method provided under paragraph (1)(B) shall be simple. The
regulations prescribed to implement this section shall provide
specific guidance regarding how to comply with such standards.
(3) Duration
(A) In general
The election of a consumer pursuant to paragraph (1)(B) to
prohibit the making of solicitations shall be effective for at
least 5 years, beginning on the date on which the person
receives the election of the consumer, unless the consumer
requests that such election be revoked.
(B) Notice upon expiration of effective period
At such time as the election of a consumer pursuant to
paragraph (1)(B) is no longer effective, a person may not use
information that the person receives in the manner described in
paragraph (1) to make any solicitation for marketing purposes
to the consumer, unless the consumer receives a notice and an
opportunity, using a simple method, to extend the opt-out for
another period of at least 5 years, pursuant to the procedures
described in paragraph (1).
(4) Scope
This section shall not apply to a person -
(A) using information to make a solicitation for marketing
purposes to a consumer with whom the person has a pre-existing
business relationship;
(B) using information to facilitate communications to an
individual for whose benefit the person provides employee
benefit or other services pursuant to a contract with an
employer related to and arising out of the current employment
relationship or status of the individual as a participant or
beneficiary of an employee benefit plan;
(C) using information to perform services on behalf of
another person related by common ownership or affiliated by
corporate control, except that this subparagraph shall not be
construed as permitting a person to send solicitations on
behalf of another person, if such other person would not be
permitted to send the solicitation on its own behalf as a
result of the election of the consumer to prohibit
solicitations under paragraph (1)(B);
(D) using information in response to a communication
initiated by the consumer;
(E) using information in response to solicitations authorized
or requested by the consumer; or
(F) if compliance with this section by that person would
prevent compliance by that person with any provision of State
insurance laws pertaining to unfair discrimination in any State
in which the person is lawfully doing business.
(5) No retroactivity
This subsection shall not prohibit the use of information to
send a solicitation to a consumer if such information was
received prior to the date on which persons are required to
comply with regulations implementing this subsection.
(b) Notice for other purposes permissible
A notice or other disclosure under this section may be
coordinated and consolidated with any other notice required to be
issued under any other provision of law by a person that is subject
to this section, and a notice or other disclosure that is
equivalent to the notice required by subsection (a) of this
section, and that is provided by a person described in subsection
(a) of this section to a consumer together with disclosures
required by any other provision of law, shall satisfy the
requirements of subsection (a) of this section.
(c) User requirements
Requirements with respect to the use by a person of information
received from another person related to it by common ownership or
affiliated by corporate control, such as the requirements of this
section, constitute requirements with respect to the exchange of
information among persons affiliated by common ownership or common
corporate control, within the meaning of section 1681t(b)(2) of
this title.
(d) Definitions
For purposes of this section, the following definitions shall
apply:
(1) Pre-existing business relationship
The term "pre-existing business relationship" means a
relationship between a person, or a person's licensed agent, and
a consumer, based on -
(A) a financial contract between a person and a consumer
which is in force;
(B) the purchase, rental, or lease by the consumer of that
person's goods or services, or a financial transaction
(including holding an active account or a policy in force or
having another continuing relationship) between the consumer
and that person during the 18-month period immediately
preceding the date on which the consumer is sent a solicitation
covered by this section;
(C) an inquiry or application by the consumer regarding a
product or service offered by that person, during the 3-month
period immediately preceding the date on which the consumer is
sent a solicitation covered by this section; or
(D) any other pre-existing customer relationship defined in
the regulations implementing this section.
(2) Solicitation
The term "solicitation" means the marketing of a product or
service initiated by a person to a particular consumer that is
based on an exchange of information described in subsection (a)
of this section, and is intended to encourage the consumer to
purchase such product or service, but does not include
communications that are directed at the general public or
determined not to be a solicitation by the regulations prescribed
under this section.

PRIOR PROVISIONS
A prior section 624 of Pub. L. 90-321 was renumbered section 625
and is classified to section 1681t of this title.
Another prior section 624 of Pub. L. 90-321 was renumbered
section 626 and is classified to section 1681u of this title.
EFFECTIVE DATE
Section subject to joint regulations establishing effective dates
as prescribed by Federal Reserve Board and Federal Trade
Commission, except as otherwise provided, see section 3 of Pub. L.
108-159, set out as an Effective Date of 2003 Amendment note under
section 1681 of this title.
REGULATIONS
Pub. L. 108-159, title II, Sec. 214(b), Dec. 4, 2003, 117 Stat.
1982, provided that:
"(1) In general. - The Federal banking agencies, the National
Credit Union Administration, and the Commission, with respect to
the entities that are subject to their respective enforcement
authority under section 621 of the Fair Credit Reporting Act [15
U.S.C. 1681s] and the Securities and Exchange Commission, and in
coordination as described in paragraph (2), shall prescribe
regulations to implement section 624 of the Fair Credit Reporting
Act [15 U.S.C. 1681s-3], as added by this section.
"(2) Coordination. - Each agency required to prescribe
regulations under paragraph (1) shall consult and coordinate with
each other such agency so that, to the extent possible, the
regulations prescribed by each such entity are consistent and
comparable with the regulations prescribed by each other such
agency.
"(3) Considerations. - In promulgating regulations under this
subsection, each agency referred to in paragraph (1) shall -
"(A) ensure that affiliate sharing notification methods provide
a simple means for consumers to make determinations and choices
under section 624 of the Fair Credit Reporting Act [15 U.S.C.
1681s-3], as added by this section;
"(B) consider the affiliate sharing notification practices
employed on the date of enactment of this Act [Dec. 4, 2003] by
persons that will be subject to that section 624; and
"(C) ensure that notices and disclosures may be coordinated and
consolidated, as provided in subsection (b) of that section 624.
"(4) Timing. - Regulations required by this subsection shall -
"(A) be issued in final form not later than 9 months after the
date of enactment of this Act [Dec. 4, 2003]; and
"(B) become effective not later than 6 months after the date on
which they are issued in final form."
[For definitions of terms used in section 214(b) of Pub. L.
108-159, set out above, see section 2 of Pub. L. 108-159, set out
as a Definitions note under section 1681 of this title.]
STUDIES OF INFORMATION SHARING PRACTICES
Pub. L. 108-159, title II, Sec. 214(e), Dec. 4, 2003, 117 Stat.
1983, provided that:
"(1) In general. - The Federal banking agencies, the National
Credit Union Administration, and the Commission shall jointly
conduct regular studies of the consumer information sharing
practices by financial institutions and other persons that are
creditors or users of consumer reports with their affiliates.
"(2) Matters for study. - In conducting the studies required by
paragraph (1), the agencies described in paragraph (1) shall -
"(A) identify -
"(i) the purposes for which financial institutions and other
creditors and users of consumer reports share consumer
information;
"(ii) the types of information shared by such entities with
their affiliates;
"(iii) the number of choices provided to consumers with
respect to the control of such sharing, and the degree to and
manner in which consumers exercise such choices, if at all; and
"(iv) whether such entities share or may share personally
identifiable transaction or experience information with
affiliates for purposes -
"(I) that are related to employment or hiring, including
whether the person that is the subject of such information is
given notice of such sharing, and the specific uses of such
shared information; or
"(II) of general publication of such information; and
"(B) specifically examine the information sharing practices
that financial institutions and other creditors and users of
consumer reports and their affiliates employ for the purpose of
making underwriting decisions or credit evaluations of consumers.
"(3) Reports. -
"(A) Initial report. - Not later than 3 years after the date of
enactment of this Act [Dec. 4, 2003], the Federal banking
agencies, the National Credit Union Administration, and the
Commission shall jointly submit a report to the Congress on the
results of the initial study conducted in accordance with this
subsection, together with any recommendations for legislative or
regulatory action.
"(B) Followup reports. - The Federal banking agencies, the
National Credit Union Administration, and the Commission shall,
not less frequently than once every 3 years following the date of
submission of the initial report under subparagraph (A), jointly
submit a report to the Congress that, together with any
recommendations for legislative or regulatory action -
"(i) documents any changes in the areas of study referred to
in paragraph (2)(A) occurring since the date of submission of
the previous report;
"(ii) identifies any changes in the practices of financial
institutions and other creditors and users of consumer reports
in sharing consumer information with their affiliates for the
purpose of making underwriting decisions or credit evaluations
of consumers occurring since the date of submission of the
previous report; and
"(iii) examines the effects that changes described in clause
(ii) have had, if any, on the degree to which such affiliate
sharing practices reduce the need for financial institutions,
creditors, and other users of consumer reports to rely on
consumer reports for such decisions."
[For definitions of terms used in section 214(e) of Pub. L.
108-159, set out above, see section 2 of Pub. L. 108-159, set out
as a Definitions note under section 1681 of this title.]