To change the Status of a Contact you must have the Contact Status permission. If you do not have permission to change a Contact's Status then you must contact the Account Owner or a user with Account Settings permission to change the Contact's Status or give you permission to.
There are three statuses.
Approved (You can Dispose Items to the contact)
Caution (You will receive a warning when Disposing Items to the contact)
Denied (You cannot Dispose Items to the contact)
Contact Status will help keep prohibited, denied, or buyers you do not want to sell to from having Items disposed to them.
To Change the Status of a Contact
Search for a Contact and Select it
Just above the Save button there will be a dropdown labeled 'Status'
Choose the Status
You will be required to enter a note when changing the Status of a Contact. This note will be saved and can be viewed by viewing the Audit Trail on the Contact. This note cannot be edited after it's saved and will not appear on your bound book.