Which Act focuses on protecting consumer financial information and requires financial institutions to explain their privacy practices?

Which Act focuses on protecting consumer financial information and requires financial institutions to explain their privacy practices?

• A. DMCA
• B. HIPAA
• C. FERPA
• D. GLBA

Answer: (D)

Protecting consumer financial information and requiring financial institutions to explain their privacy practices is the function of the Gramm-Leach-Bliley Act. This law requires financial institutions to safeguard nonpublic personal data and to provide customers with clear privacy notices that describe what information is collected, how it’s used, and with whom it may be shared. It also gives customers the right to opt out of certain sharing and imposes a Safeguards Rule that obligates organizations to implement a written information security program to protect sensitive data. Other acts in the list cover different types of information. The DMCA focuses on copyright and anti-circumvention of digital works. HIPAA protects health information and privacy in healthcare settings. FERPA guards student education records. None of these specifically target the protection of consumer financial information or require the comprehensive privacy disclosures that GLBA mandates.

Protecting consumer financial information and requiring financial institutions to explain their privacy practices is the function of the Gramm-Leach-Bliley Act. This law requires financial institutions to safeguard nonpublic personal data and to provide customers with clear privacy notices that describe what information is collected, how it’s used, and with whom it may be shared. It also gives customers the right to opt out of certain sharing and imposes a Safeguards Rule that obligates organizations to implement a written information security program to protect sensitive data.

Other acts in the list cover different types of information. The DMCA focuses on copyright and anti-circumvention of digital works. HIPAA protects health information and privacy in healthcare settings. FERPA guards student education records. None of these specifically target the protection of consumer financial information or require the comprehensive privacy disclosures that GLBA mandates.