Regulations that became effective in 2008 affect NAR members that have affiliated businesses and those that deal with credit reports. The Fair Credit Reporting Act of 1970 (FCRA) was amended by the Fair and Accurate Credit Transactions Act of 2003 (FACT Act) late in 2007 adding several new regulations affecting some NAR members.
The Affiliate Marketing Regulations, issued by the Federal Trade Commission (FTC) and the Federal banking agencies, generally require a company to provide a notice to consumers and an opportunity to opt out before an affiliated company can use certain information for marketing purposes. The affiliate marketing notice is in addition to the privacy notices already mandated, and would be a second required notice and opt out opportunity.
The regulations have certain exceptions to these requirements. For example, the notice and opt out does not apply if the solicitation is made to a customer with a pre-existing relationship with the affiliate.
The FTC published these regulations in final form on October 30, 2007, and the Federal banking agencies published essentially equivalent final regulations on November 7, 2007. The mandatory compliance date for the Affiliate Marketing Rules was October 1, 2008. The rule, as stated above, generally prohibits a person from using information received from an affiliate to make a solicitation for marketing purposes to a consumer, unless the consumer is given notice and a reasonable opportunity and a reasonable and simple method to opt out of the making of such solicitations.
To learn the details about these requirements, see the Frequently Asked Questions: Affiliate Marketing Regulations
When did the regulations become effective?
October 1, 2008
Who can I call for more information?
FTC Bureau of Consumer Protection, Division of Privacy and Identity Protection
Where can I find the rules?
FTC Rule in the Federal Register: 72 Fed. Reg. 61424 (PDF: 276KB)