Do Not Solicit vs. Opt-out

Question: A customer recently asked whether we have a "Do Not Solicit" list. What is this and should we have it? How does it differ from Opt-out?

Answer: At this point (on the federal level) a Do Not Solicit ("DNS") list is voluntary. Some states do have a requirement. Check with your state banking association or attorney general to find out.

DNS means that you promise not to call or solicit the customer for any marketing or cross-marketing purposes. Once a customer requests to be on a DNS list, they are totally off limits for any marketing. This is different from the opt-out from information sharing. The opt-out is a promise to refrain from sharing customer information with other entities. DNS, however, relates to your own institution's marketing. It is therefore different from opt-out and restricts the institution from marketing rather than from sharing information.

Some institutions have instituted DNS programs because they perceive that it is desirable to consumers and it is therefore a means of building consumer loyalty. Unless your state requires it, however, it is a voluntary program.

Copyright © 2002 Compliance Action. Originally appeared in Compliance Action, Vol. 7, No. 7, 6/02