CONSUMERS’ FINANCIAL INFORMATION AND THE GRAMM LEACH BLILEY ACT OF 1999

With the ability of advanced technology to collect and maintain data, financial services businesses have increasingly found ways to take advantage of their large reservoirs of customer information. Protection of the privacy of consumer financial information by “financial institutions” is the basic aim of the financial privacy provisions of the Gramm Leach Bliley Act of 1999 (GLB Act). Title V of the GLB Act contains privacy provisions enacted in conjunction with financial modern legislation. The Act consists of three parts regarding privacy requirements. This article illustrates on the GLB Act’s privacy rules, including the U.S. Federal Trade Commission Safeguard Rule; the exceptions under the GLB Act that permit information-sharing over the consumer’s objection; and whether the GLB Act really protects consumers.

The following questions have been addressed in this article:

According to the GLB Act, what are the three principal rules regarding privacy requirements?
What are the exceptions under the GLB Act that permit information-sharing over the consumer’s objection?
Does the GLB Act protect the consumer? Is there a problem with the GLB Act?

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