The Federal Trade Commission (FTC) issued two Notices of Proposed Rulemaking (NPRMs) seeking comment on proposed amendments to the Gramm–Leach–Bliley Act (GLBA) Safeguards Rule and Privacy Rule. The comments are due 60 days after the NPRM is published in the Federal Register. The NPRMs accomplish two things. First, they address comments received several years ago when the FTC sought review of these rules pursuant to its periodic review of FTC rules and guides. Second, it proposes to amend both rules and seeks comments on those amendments.
The FTC reached a settlement with online tax preparation service TaxSlayer Online for allegedly violating the Gramm Leach Bliley Act’s (“GLBA”) Privacy Rule and Regulation P as well as the Safeguards Rule.
The Privacy Rule/Regulation P requires financial institutions to provide initial and annual notices to their customers informing them about what nonpublic personal information is shared with third parties. It also provides information about how consumers can opt out of certain information sharing. Both the FTC and the Consumer Financial Protection Bureau enforce the Privacy Rule.
The Safeguards Rule requires financial institutions to use reasonable procedures to safeguard their customers’ nonpublic information. The FTC enforces the Safeguards Rule.