Regulators request privacy notice comments

Northwestern Financial Review, Jan 15-Jan 31, 2004

Eight federal regulators have requested public comment on ways to improve the privacy notices financial institutions provide to consumers under the Gramm-Leach-Bliley Act of 1999. The regulators describe various approaches they could pursue to allow or require financial institutions to provide alternative types of privacy notices that would be more readable and useful to consumers.

It also seeks comment on whether differences between federal and state laws pose any special issues for developing a short privacy notice. In 2000, the agencies published regulations that implement GLB provisions, including sample clauses that institutions may use in privacy notices. The regulations do not, however, prescribe any specific format or standardized wording for privacy notices.