source:
  type: regulation
  id: reg-p-1016.7
  authority: 12 CFR §1016.7 — Form of opt out notice to consumers; opt out methods
    (Regulation P)
  description: 12 CFR §1016.7 — Form of opt out notice to consumers; opt out methods.
  coverage_tier: operative
obligations:
- id: reg-p-1016.7-full
  canonical_id: reg-p-1016.7-full
  section: 12 CFR §1016.7 — Form of opt out notice to consumers; opt out methods
  type: do
  tags:
  - regulator-direct
  - glba-privacy
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: 12 CFR §1016.7 — Form of opt out notice to consumers; opt out methods
      (Regulation P)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1016.7
    snapshot_id: 6d5f5f9debb0c84c
    fetched_at: '2026-05-22T18:53:11Z'
    content_hash: sha256:a25584c9a33c5cdb71fff4c31466da6a7583c1831a8de0c347d81001fba58217
    paragraph_quote: '§ 1016.7 Form of opt out notice to consumers; opt out methods.
      (a) (1) Form of opt out notice. If you are required to provide an opt out notice
      under § 1016.10(a) , you must provide a clear and conspicuous notice to each
      of your consumers that accurately explains the right to opt out under that section.
      The notice must state: (i) That you disclose or reserve the right to disclose
      nonpublic personal information about your consumer to a nonaffiliated third
      party ; (ii) That the consumer has the right to opt out of that disclosure;
      and (iii) A reasonable means by which the consumer may exercise the opt out
      right. (2) Examples —(i) Adequate opt out notice. You provide adequate notice
      that the consumer can opt out of the disclosure of nonpublic personal information
      to a nonaffiliated third party if you: (A) Identify all of the categories of
      nonpublic personal information that you disclose or reserve the right to disclose,
      and all of the categories of nonaffiliated third parties to which you disclose
      the information, as described in § 1016.6(a)(2) and (3) of this part, and state
      that the consumer can opt out of the disclosure of that information; and (B)
      Identify the financial products or services that the consumer obtains from you
      , either singly or jointly, to which the opt out direction would apply. (ii)
      Reasonable opt out means. You provide a reasonable means to exercise an opt
      out right if you: (A) Designate check -off boxes in a prominent position on
      the relevant forms with the opt out notice; (B) Include a reply form together
      with the opt out notice that, in the case of financial institutions described
      in § 1016.3(l)(3) of this part, includes the address to which the form should
      be mailed; (C) Provide an electronic means to opt out, such as a form that can
      be sent via electronic mail or a process at your Web site, if the consumer agrees
      to the electronic delivery of information; or (D) Provide a toll-free telephone
      number that consumers may call to opt out. (iii) Unreasonable opt out means.
      You do not provide a reasonable means of opting out if: (A) The only means of
      opting out is for the consumer to write his or her own letter to exercise that
      opt out right; or (B) The only means of opting out as described in any notice
      subsequent to the initial notice is to use a check -off box that you provided
      with the initial notice but did not include with the subsequent notice. (iv)
      Specific opt out means. You may require each consumer to opt out through a specific
      means, as long as that means is reasonable for that consumer. (b) Same form
      as initial notice permitted. You may provide the opt out notice together with
      or on the same written or electronic form as the initial notice you provide
      in accordance with § 1016.4 . (c) Initial notice required when opt out notice
      delivered subsequent to initial notice. If you provide the opt out notice later
      than required for the initial notice in accordance with § 1016.4 of this part,
      you must also include a copy of the initial notice with the opt out notice in
      writing or, if the consumer agrees, electronically. (d) Joint relationships
      in the case of financial institutions other than credit unions and covered entities
      subject to FTC enforcement jurisdiction. For purposes of this paragraph (d),
      “you” is limited to financial institutions other than credit unions and financial
      institutions described in § 1016.3(l)(3) of this part. (1) If two or more consumers
      jointly obtain a financial product or service from you , you may provide a single
      opt out notice. Your opt out notice must explain how you will treat an opt out
      direction by a joint consumer (as explained in paragraph (d)(5) of this section).
      (2) Any of the joint consumers may exercise the right to opt out. You may either:
      (i) Treat an opt out direction by a joint consumer as applying to all of the
      associated joint consumers; or (ii) Permit each joint consumer to opt out separately.
      (3) If you permit each joint consumer to opt out separately, you must permit
      one of the joint consumers to opt out on behalf of all of the joint consumers.
      (4) You may not require all joint consumers to opt out before you implement
      any opt out direction. (5) Example. If John and Mary have a joint checking account
      with you and arrange for you to send statements to John''s address, you may
      do any of the following, but you must explain in your opt out notice which opt
      out policy you will follow: (i) Send a single opt out notice to John''s address,
      but you must accept an opt out direction from either John or Mary. (ii) Treat
      an opt out direction by either John or Mary as applying to the entire account
      . If you do so, and John opts out, you may not require Mary to opt out as well
      before implementing John''s opt out direction. (iii) Permit John and Mary to
      make different opt out directions. If you do so: (A) You must permit John and
      Mary to opt out for each other; (B) If both opt out, you must permit both to
      notify you in a single response (such as on a form or through a telephone call);
      and (C) If John opts out and Mary does not, you may only disclose nonpublic
      personal information about Mary, but not about John and not about John and Mary
      jointly. (e) Joint relationships in the case of credit unions. (1) If two or
      more consumers jointly obtain a financial product or service, other than a loan,
      from a credit union , the credit union may provide only a single opt out notice.
      The opt out notice must explain how the credit union will treat an opt out direction
      by a joint consumer (as explained in the examples in paragraph (e)(5) of this
      section). (2) Any of the joint consumers may exercise the right to opt out.
      A credit union may either: (i) Treat an opt out direction by a joint consumer
      to apply to all of the associated joint consumers; or (ii) Permit each joint
      consumer to opt out separately. (3) If a credit union permits each joint consumer
      to opt out separately, the credit union must permit one of the joint consumers
      to opt out on behalf of all of the joint consumers. (4) A credit union may not
      require all joint consumers to opt out before the credit union implements any
      opt out direction. (5) Example. If John and Mary have a joint share account
      with a credit union and arrange for the credit union to send statements to John''s
      address, the credit union may do any of the following, but it must explain in
      its opt out notice which opt out policy it will follow: (i) Send a single opt
      out notice to John''s address, but it must accept an opt out direction from
      either John or Mary. (ii) Treat an opt out direction by either John or Mary
      as applying to the entire account . If it does so, and John opts out, it may
      not require Mary to opt out as well before implementing John''s opt out direction.
      (iii) Permit John and Mary to make different opt out directions. If it does
      so, and if John and Mary both opt out, it must permit one or both of them to
      notify it in a single response (such as on a form or through a telephone call).
      (6) Special rule for loans. (i) A credit union is required to provide an initial
      opt out notice to a borrower or guarantor on a loan if it shares his or her
      nonpublic personal information with nonaffiliated third parties other than for
      purposes under §§ 1016.13 , 1016.14, and 1016.15. (ii) A credit union may satisfy
      its annual opt out notice requirement by providing one notice to those borrowers
      and guarantors jointly. (f) Joint relationships in the case of covered entities
      subject to FTC enforcement jurisdiction. For purposes of this paragraph (f),
      “you” is limited to the financial institutions described in § 1016.3(l)(3) .
      (1) If two or more consumers jointly obtain a financial product or service from
      you , you may provide a single opt out notice, unless one or more of those consumers
      requests a separate opt out notice. Your opt out notice must explain how you
      will treat an opt out direction by a joint consumer (as explained in paragraph
      (f)(5) of this section). (2) Any of the joint consumers may exercise the right
      to opt out. You may either: (i) Treat an opt out direction by a joint consumer
      as applying to all of the associated joint consumers; or (ii) Permit each joint
      consumer to opt out separately. (3) If you permit each joint consumer to opt
      out separately, you must permit one of the joint consumers to opt out on behalf
      of all of the joint consumers. (4) You may not require all joint consumers to
      opt out before you implement any opt out direction. (5) Example. If John and
      Mary have a joint credit card account with you and arrange for you to send statements
      to John''s address, you may do any of the following, but you must explain in
      your opt out notice which opt out policy you will follow: (i) Send a single
      opt out notice to John''s address, but you must accept an opt out direction
      from either John or Mary. (ii) Treat an opt out direction by either John or
      Mary as applying to the entire account . If you do so, and John opts out, you
      may not require Mary to opt out as well before implementing John''s opt out
      direction. (iii) Permit John and Mary to make different opt out directions.
      If you do so: (A) You must permit John and Mary to opt out for each other; (B)
      If both opt out, you must permit both to notify you in a single response (such
      as on a form or through a telephone call); and (C) If John opts out and Mary
      does not, you may only disclose nonpublic personal information about Mary, but
      not about John and not about John and Mary jointly. (g) Time to comply with
      opt out. You must comply with a consumer''s opt out direction as soon as reasonably
      practicable after you receive it. (h) Continuing right to opt out. A consumer
      may exercise the right to opt out at any time. (i) Duration of consumer''s opt
      out direction. (1) A consumer''s direction to opt out under this section is
      effective until the consumer revokes it in writing or, if the consumer agrees,
      electronically. (2) When a customer relationship terminates, the customer ''s
      opt out direction continues to apply to the nonpublic personal information that
      you collected during or related to that relationship. If the individual subsequently
      establishes a new customer relationship with you , the opt out direction that
      applied to the former relationship does not apply to the new relationship. (j)
      Delivery. When you are required to deliver an opt out notice by this section,
      you must deliver it according to § 1016.9 of this part. (k) Model privacy form.
      Pursuant to § 1016.2(a) of this part, a model privacy form that meets the notice
      content requirements of this section is included in the appendix to this part.'
  judgment: false
