Understanding Affiliate Marketing Opt-Out Notices Under Regulation V
Learn how consumer opt-out rights limit affiliates’ use of eligibility information for marketing under the Fair Credit Reporting Act.
Regulation V, which implements the Fair Credit Reporting Act (FCRA), requires financial institutions and other covered entities to give consumers clear options to limit the use of certain information for marketing by affiliated companies. A key part of these protections is the affiliate marketing opt-out notice described in 12 CFR 1022.23.
This guide explains, in plain language, what these notices must include, how they can be combined with other disclosures, and how consumers and companies should navigate the opt-out process.
1. Background: Why Affiliate Marketing Opt-Out Exists
The FCRA and Regulation V govern how consumer information can be collected, shared, and used for credit and other purposes. Subpart C of Regulation V gives consumers the right to restrict how affiliates use eligibility information for marketing solicitations.
Key concepts:
- Eligibility information: Information used to determine a consumer’s eligibility for credit, insurance, employment, or similar purposes. It includes data similar to what appears in consumer reports, as well as transaction and experience information shared among affiliates.
- Affiliate: Companies that are related by common ownership or control, such as a bank, its credit card subsidiary, and its insurance affiliate.
- Marketing solicitation: A communication initiated by an affiliate that is based on eligibility information received from another affiliate, and that is intended to encourage the consumer to purchase or obtain a product or service.
Section 624 of the FCRA gives consumers the right to prevent an affiliate from using eligibility information received from another affiliate to make marketing solicitations, subject to certain conditions and exceptions. Regulation V, at 12 CFR Part 1022, explains how that right must be disclosed and implemented.
2. Core Requirements for Opt-Out Notices
Under 12 CFR 1022.23, an affiliate marketing opt-out notice must be clear, conspicuous, and concise, and it must accurately describe the consumer’s rights and how to exercise them.
2.1 Information that must be disclosed
At a minimum, the notice must convey all of the following elements:
- Who is providing the notice – The notice must identify the affiliate or affiliates that are giving the notice. If multiple entities share a common brand name, they may indicate that the notice comes from all entities in that group.
- Who will use the information – The notice must list the affiliates, or types of affiliates, that may use eligibility information for marketing if the consumer does not opt out.
- What information is covered – A general description of the categories of eligibility information that may be used to make solicitations, such as account history, transaction data, or information from consumer reports.
- The consumer’s right to limit use – A clear statement that the consumer may choose to limit the use of eligibility information for marketing solicitations by affiliates.
- How long the opt-out lasts – The notice must state the duration of the opt-out period and, if applicable, explain that consumers will be able to renew their choice when the period expires.
- Existing opt-outs – If the notice is sent to consumers who may have previously elected to limit solicitations (for example, as part of a recurring mailing), it must explain that those consumers do not need to act again until they receive a renewal notice.
- How to opt out – The notice must describe at least one reasonable and simple method a consumer can use to exercise the opt-out right, such as mailing back a form, calling a toll-free number, or using an online portal.
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2.2 Reasonable and simple opt-out methods
Regulation V does not mandate a specific method, but the approach chosen must not be burdensome or confusing for the consumer.
Common methods include:
- A check box on a paper or electronic form that can be returned.
- A toll-free telephone number with an automated or live opt-out process.
- A secure website or online account setting allowing the consumer to record the opt-out.
Requiring multiple steps, complex log-in procedures that are not otherwise used by the consumer, or in-person visits is generally inconsistent with the “reasonable and simple” standard.
3. Joint Consumers and Opt-Out Directions
Special rules apply when the notice relates to accounts or relationships held jointly by more than one consumer (for example, joint checking accounts or co-signed loans).
3.1 Who can opt out?
Any one of the joint consumers may exercise the right to opt out for purposes of the affiliate marketing rule. The notice must clearly explain how the entity will treat an opt-out direction made by one joint consumer on an account.
3.2 Permissible approaches for joint relationships
The entity has some flexibility, but must choose a policy that is clearly described in the notice and that does not undermine consumer rights.
Acceptable approaches include:
- Joint opt-out applied to all – Treat an opt-out by any one joint consumer as applying to all joint consumers on the account.
- Separate choices for each joint consumer – Allow each joint consumer to opt out individually, while also permitting one joint consumer to submit a single response that records separate choices for each person.
3.3 Prohibited approach
The rule explicitly prohibits making the opt-out effective only if all joint consumers elect to opt out. It is impermissible to require unanimous agreement before implementing an opt-out direction.
| Policy Type | Description | Permitted Under 1022.23 |
|---|---|---|
| One opts, applies to all | Any joint consumer’s opt-out covers all consumers on the account. | Yes, if disclosed clearly. |
| Separate opt-outs permitted | Each consumer can choose individually, and one may act for all in a single response. | Yes, if disclosed clearly. |
| All must opt out | Opt-out only effective if every joint consumer opts out. | No, specifically prohibited. |
4. Alternative and Broader Opt-Out Rights
Some entities choose to provide consumers with rights that go beyond the minimum requirements of Regulation V. For example, a company may offer an opt-out from all marketing communications, regardless of whether they are based on eligibility information from affiliates.
4.1 Using a broader opt-out to satisfy the rule
If the company offers a broader right to opt out of marketing than Regulation V requires, it may satisfy 1022.23 by providing a notice that:
- Is clear, conspicuous, and concise, and
- Accurately describes the full scope of the consumer’s opt-out rights, including and exceeding those required by the affiliate marketing rule.
In such cases, the broader notice can function as the affiliate marketing opt-out notice, provided that it still covers the mandatory elements related to affiliate use of eligibility information.
5. Coordinated, Consolidated, and Equivalent Notices
Regulation V recognizes that consumers often receive multiple disclosures at the same time, such as privacy notices, sharing opt-outs, and marketing opt-outs. The rule allows entities to coordinate or consolidate these documents.
5.1 Coordinated and consolidated notices
Under 12 CFR 1022.23(b), the affiliate marketing opt-out notice may be combined with other disclosures that the entity must provide under federal law, including:
- The opt-out notice required when a company shares certain information with nonaffiliated third parties under Section 603(d)(2)(A)(iii) of the FCRA.
- The Gramm–Leach–Bliley Act (GLBA) privacy notice describing how consumer financial information is collected, used, and shared.
When notices are consolidated, the combined document must still satisfy the content standards for each individual requirement. The affiliate marketing opt-out elements must remain clear and not be obscured by other content.
5.2 Equivalent notices
Section 1022.23(c) provides that a notice or other disclosure that is equivalent to the required affiliate marketing opt-out notice, and that is provided along with disclosures required by other laws, will satisfy the rule. This gives entities flexibility to craft integrated communications, as long as the essential information about affiliate use of eligibility data and the consumer’s opt-out right is preserved.
6. Relationship with Other FCRA and Privacy Requirements
The affiliate marketing opt-out requirement works alongside, but is distinct from, other FCRA obligations and privacy rules.
6.1 Difference between sharing and use opt-outs
Under the FCRA and GLBA framework, consumers may encounter at least two types of opt-outs related to their information:
- Sharing opt-out – Limits whether certain information may be shared with nonaffiliated third parties for purposes such as marketing.
- Use opt-out (affiliate marketing) – Limits how affiliates may use eligibility information received from another affiliate to make marketing solicitations, even if the sharing itself is allowed.
These two rights address different stages of information handling, and both may apply to the same consumer data. Regulation V permits, and even encourages, coordinated notices so that consumers can understand and exercise both rights in a single communication.
6.2 Scope of Regulation V
Regulation V (12 CFR Part 1022) is the primary regulation implementing the FCRA for covered persons. It addresses a range of topics, including identity theft safeguards, obligations of furnishers and users of consumer reports, and consumer rights related to information reporting. The affiliate marketing provisions in Subpart C are one component of this broader framework designed to protect consumer privacy and data integrity.
7. Practical Considerations for Institutions
Entities subject to 12 CFR 1022.23 must translate the regulatory text into operational policies and systems that reliably honor consumer choices.
7.1 Designing compliant notices
When crafting an affiliate marketing opt-out notice, organizations should:
- Use straightforward language that an average consumer can understand.
- Prominently display headings and key opt-out explanations, avoiding dense legal jargon.
- Clearly separate affiliate marketing opt-out content from unrelated promotional material.
- Ensure the length and format support the requirement that notices be concise.
7.2 Implementing opt-out mechanics
Operational steps typically include:
- Building internal systems to record and track opt-out elections, including joint-account rules.
- Applying opt-out flags across the relevant affiliates that use eligibility information for marketing.
- Respecting opt-out periods and renewing notices when the period expires, if the entity uses a time-limited opt-out.
- Training customer-facing staff to answer questions and correctly describe the consumer’s opt-out rights.
7.3 Monitoring and oversight
To maintain compliance, entities often:
- Conduct periodic audits of marketing campaigns to confirm that solicitations based on eligibility information exclude consumers who have opted out.
- Review consolidated privacy and opt-out notices when regulations change or new products are launched.
- Coordinate with legal and compliance teams to ensure that affiliate structures and data flows are correctly reflected in the notice.
8. Consumer Tips: Using Affiliate Marketing Opt-Out Rights
Consumers can use affiliate marketing opt-outs as one tool to manage the volume and type of marketing they receive.
8.1 How to recognize an affiliate marketing opt-out notice
The notice may appear:
- Within a broader privacy notice you receive at account opening or annually.
- As a stand-alone page or section labeled with language about limiting marketing from affiliated companies.
- In online account settings, under privacy, communication preferences, or marketing options.
8.2 Questions to consider
When you receive a notice, consider:
- Which companies (affiliates) will be allowed to use your information if you do not opt out?
- What types of information are covered (for example, your account balances, payment history, or credit profile)?
- How long your choice will last and whether you must renew it in the future.
- Whether the company is offering broader marketing opt-out rights that go beyond the minimum legal requirement.
Frequently Asked Questions (FAQs)
Q1: Is opting out of affiliate marketing the same as stopping all marketing?
No. The affiliate marketing opt-out under Regulation V only limits how affiliates may use eligibility information obtained from another affiliate to make solicitations. It does not automatically stop all marketing, such as offers based on your direct relationship with a single company or marketing that does not rely on shared eligibility information.
Q2: Can I change my mind after I opt out?
Yes. The rule does not prevent you from revoking your opt-out if you later decide you want to receive affiliate-based marketing solicitations again. Companies generally provide a method to change your preference, such as updating settings online or contacting customer service.
Q3: How long does my opt-out election last?
Regulation V allows companies to set a specific opt-out period, which must be disclosed in the notice. Many institutions choose a period of several years. When that period expires, you may receive a renewal notice giving you the chance to continue your opt-out.
Q4: Do I need to opt out separately for each account?
It depends on the policy described in the notice. Some companies apply your opt-out broadly across all of your relationships with them and their affiliates, while others may apply it more narrowly. The notice should explain the scope of the opt-out and whether joint accounts are covered when one consumer exercises the right.
Q5: How is this different from identity theft protections under the FCRA?
Identity theft protections in Regulation V and the FCRA focus on detecting, preventing, and mitigating fraud, such as by placing fraud alerts or using red flag guidelines. The affiliate marketing opt-out rule is about privacy and marketing choices, not fraud prevention, although both sets of rules arise from the same statute.
References
- 12 CFR 1022.23 – Contents of opt-out notice; consolidated and equivalent notices — Consumer Financial Protection Bureau. 2023-01-01. https://www.consumerfinance.gov/rules-policy/regulations/1022/23/
- 12 CFR Part 1022 – Fair Credit Reporting (Regulation V) — Consumer Financial Protection Bureau. 2023-01-01. https://www.consumerfinance.gov/rules-policy/regulations/1022/
- 12 CFR Part 1022 – Fair Credit Reporting (Regulation V) — Electronic Code of Federal Regulations, Office of the Federal Register. 2024-08-01. https://www.ecfr.gov/current/title-12/chapter-X/part-1022
- CFPB Consumer Laws and Regulations – Fair Credit Reporting Act (FCRA) — Consumer Financial Protection Bureau. 2012-10-01. https://files.consumerfinance.gov/f/documents/102012_cfpb_fair-credit-reporting-act-fcra_procedures.pdf
- Background and Summary of Regulation V — Board of Governors of the Federal Reserve System. 2009-01-01. https://www.federalreserve.gov/frrs/regulations/background-and-summary-of-regulation-v.htm
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