Protect consumer privacy: Repeal GLBA's privacy provisions

guest · Aug 2, 2020

Protect consumer privacy: Repeal GLBA's privacy provisions
July 30, 2020
https://iapp.org/news/a/protect-consumer-privacy-repeal-the-glbas-privacy-provisions/

How do the privacy protections in the Gramm-Leach-Bliley Act — the well-known banking law — help consumers? The short answer is that the GLBA does almost nothing to help consumer privacy. Understanding that the GLBA is essentially a privacy fraud is important because exemptions for the GLBA are features of some state and federal privacy bills.

Let’s look at the provisions of the GLBA. The privacy part of the law provides two — and only two — provisions for consumers.

First, each financial institution must have a privacy notice. That’s something but not much.
Second, the GLBA provides that a financial institution that wants to share personal information with a non-affiliated third party — anyone outside the corporate family — must give consumers the chance to "opt out" under some circumstances.
But the opt-out does not apply to joint marketing agreements with other financial institutions.
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Some financial institutions don’t bother offering opt-outs, choosing not to share information with third parties at all. The minor benefits of data sharing aren’t worth the bother of telling consumers about their opt-out rights and processing the opt-outs.

That’s it for the GLBA and privacy.

There is nothing else in the law for consumer privacy. No limits on data collection. No right of access or amendment. No restrictions on use. Some financial institutions have dozens of lines of business, and they can share consumer data freely with all those affiliated businesses without restriction from the GLBA
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For the moment, a better result would be for federal and state legislators to not provide a GLBA exemption in their privacy laws. California should repeal its GLBA exemption at the next opportunity. At this time, however, repealing the privacy parts of the GLBA is just a fantasy.
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