Bill > S96

This bill, known as the Massachusetts Financial Information Privacy Act, aims to protect consumers' private financial information by establishing new regulations for financial institutions. It defines key terms such as "consumer," "financial institution," and "nonpublic personal information," which refers to personally identifiable financial details obtained by a financial institution. The core provision mandates that financial institutions cannot sell, share, or disclose a consumer's nonpublic personal information to nonaffiliated third parties without the consumer's explicit prior consent, which must be obtained through a separate, clearly worded document. Financial institutions must also notify consumers annually about potential disclosures to affiliates and allow consumers to opt-out of such sharing. The bill outlines specific exceptions where disclosures are permitted, such as for necessary transaction processing, legal requirements, fraud prevention, and with consumer consent. It also establishes penalties for violations, including civil penalties for negligent and knowing or willful disclosures, with increased penalties for identity theft. The act is designed to preempt local ordinances and will become effective six months after its passage.