Simplifying Privacy Notification
by Mary Beth Guard, BOL Guru
Question: I have some questions about privacy notices. You have said previously that in a situation where Joe and Jane each have individual accounts and they have a joint account, we could send either of them the notice for the joint account, but since they each have individual accounts, they would each need to receive a notice for their individual accounts.
We were attempting to eliminate duplicate mailings, and minimize costs by sending our privacy notice with account statements (thereby including one notice addressed to Joe & Jane). Based on comments you have made, I'm thinking I need to revise our sort process. Do I understand you to say that one notice, included in a statement addressed to both, would not meet the test of also applying to Joe's individual account, and Jane's individual account relationships? Since the notice is to be provided on a consumer basis, vs. an account basis; I can't assume that Joe and Jane notified jointly with one notice, have also been notified individually?
Or, if Joe & Jane have an account, and Joe & Susie have an account; by sending one notice in the account statement addressed to Joe & Jane; Joe has been notified - which means a second notice for Joe & Susie would not be required?
I think this gets too complicated to do any possible data sorts to eliminate duplicate mailings. Is this clear anywhere in the regulation?
Answer: The regulation doesn't provide as much guidance as we might like. In Section __.9, it states:
"You must provide any privacy notices and opt out notices, including short-form initial notices, that this part requires so that each consumer can reasonably be expected to receive actual notice in writing or, if the consumer agrees, electronically."
If Joe and Jane have an account and Joe and Susie have an account, you can send one notice to Joe (as the common thread in the two joint accounts) and satisfy your obligation. But in a situation where Joe and Jane have both individual and joint accounts, I think it's risky to assume that Jane can "reasonably be expected to receive actual notice in writing" when you send the privacy notice only to Joe.
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