Federal regulators seek public comment on model privacy noticeMortgagePress.comGramm-Leach-Bliley Act, consumers privacy notices, information-sharing practices
Eight federal regulators released a notice of proposed
rulemaking requesting comment on a model privacy form that
financial institutions can use for their privacy notices to
consumers as required under the Gramm-Leach-Bliley Act (GLB
Act).
Among other things, the act requires financial institutions to
give consumers privacy notices that explain the financial
institution's information-sharing practices. Financial institutions
include companies that offer financial products and services to
consumers. At the time of establishing a customer relationship with
a consumer, and not less than annually during the continuation of
such relationship, the institution is required to provide a clear
and conspicuous disclosure in writing or electronic form of the
institution's information-sharing policies and practices. The
privacy notices must describe the institution's information-sharing
practices, and, for certain types of sharing, consumers have the
right to opt out.
Institutions that use notices based on the sample clauses
currently contained in most of the privacy rules would lose the
benefit of a safe harbor for compliance with respect to those
notices if they are provided more than one year following the date
of publication of a final rule.
Similarly, institutions that use notices based on the sample
clauses in the Securities and Exchange Commission's privacy rule
could no longer rely on the guidance provided with respect to those
notices if they are provided more than one year following the date
of publication of a final rule.
Written comments on the proposed rule amendments may be
submitted within 60 days after their publication in the Federal
Register.
For more information, visit www.ftc.gov.
