The House of Representatives has passed a bill, the Eliminate Privacy Notice Confusion Act, 113 H.R. 749, that amends Section 503 of the Gramm-Leach-Bliley Act—which governs, among other things, certain annual privacy disclosures—to create an exception for financial institutions subject to the Act to provide an annual privacy notice to consumers. Under the bill, financial institutions would be excluded from the annual notice requirement if the financial institution: (1) provides nonpublic personal information pursuant to the limited exception for nonaffiliated third parties that perform services for or functions on behalf of the financial institution and the general exceptions under the Act; and (2) has not changed its policies and practices with regard to disclosing nonpublic personal information that was provided in the most recent annual privacy disclosure sent to consumers. In addition, the bill would exclude financial institutions from the annual privacy notice requirement until the financial institution ceases to comply with exceptions referenced above.
Alert March 19, 2013