Certified Information Privacy Professional – United States (CIPP/US) — Question 42

When may a financial institution share consumer information with non-affiliated third parties for marketing purposes?

Answer options

• A. After disclosing information-sharing practices to customers and after giving them an opportunity to opt in.
• B. After disclosing marketing practices to customers and after giving them an opportunity to opt in.
• C. After disclosing information-sharing practices to customers and after giving them an opportunity to opt out.
• D. After disclosing marketing practices to customers and after giving them an opportunity to opt out.

Correct answer: C

Explanation

The correct answer is C because financial institutions must inform customers about their information-sharing practices and provide them with an opportunity to opt out before sharing their data. Options A and B incorrectly state that customers must opt in, which is not required for sharing data in this context. Option D is incorrect because it mentions marketing practices instead of information-sharing practices.