§487D-2 - Retail merchant club cards; requirements.

[§487D-2] Retail merchant club
cards; requirements. (a) No club card issuer shall request in a club card
application, or require as a condition of obtaining a club card, that the
applicant provide any personal information except name, address, and telephone
number. If the club card issuer requires a unique identifier to confirm the
identity of the applicant, the club card issuer may ask for the last four
digits of the applicant's social security number.

(b) No club card issuer may sell or share a
cardholder’s name, address, telephone number, or any personal information to
any unaffiliated third party except as permitted in this subsection. A club
card issuer may share cardholder information for marketing purposes if the club
card issuer complies with all the following:

(1) The club card issuer charges an annual fee for
the club card and requires the cardholder to renew the club card annually;

(2) The club card issuer allows only cardholders to
make purchases and not members of the general public;

(3) The club card issuer provides a written statement
to the cardholder upon payment of the annual fee that notifies the cardholder
that:

(A) The cardholder information may be shared
with other businesses for purposes of marketing information;

(B) Payment of the annual fee means the
cardholder has agreed to allow the club card issuer to share cardholder
information; and

(4) The club card issuer obtains a written confidentiality
agreement from the unaffiliated third party that the shared information will
not be transferred to any other entity.

(c) The restrictions of subsection (a) shall
not apply when the club card application form is used for the dual purpose of
club card membership and establishing privileges for check cashing, check
verification, or as a credit application; provided that no club card issuer
shall require as a condition of obtaining a club card that the cardholder
obtain the club card as an identification card for purposes of check cashing or
credit.

(d) Nothing in this section prohibits a club
card issuer from including on its club card application form a credit
application to a designated credit card company and transmitting the credit
application to the credit card company, provided that:

(1) The credit application form is separately
identified as an option on the club card application form; and

(2) The credit application clearly discloses that the
cardholder is applying for credit with the designated credit card company. [L
2004, c 92, pt of §2]