Its great that regulators come up with privacy disclosure forms, but are they effective?
The Securities and Exchange Commission has reopened the period for public comment on proposed amendments to Regulation S-P, which implements the privacy provisions of the Gramm-Leach-Bliley Act. [15 U.S.C. §§6801 – 6809] They opened back up for comment because they tested the model notices and found weaknesses with the current form.
The proposed amendments were designed to create a safe harbor for a model form that financial institutions may use to provide disclosures in initial and annual privacy notices required under Regulation S-P. Based on the field research, it sounds like the model notice needs some more work.
See:
- Gramm-Leach-Bliley Act 15 USC, Subchapter I, Sec. 6801-6809 Disclosure of Nonpublic Personal Information
- Regulation S-P
- Feud of the Forms — The Battle of The GLBA Notices by Brendon Tavelli for the Proskauer Privacy Blog
- Consumer Comprehension of Financial Privacy Notice (.pdf) by Alan levy and Manoj Hastak (2008)
- Mall Intercept Study of Consumer Understanding of Financial Privacy Notices: Methodological Report (.pdf) by Macro International
- Evolution of a Prototype Financial Privacy Notice (.pdf) by Kleimann Communication Group, Inc. (2006)
- Financial Privacy Rule: Interagency Notice Research Project by the FTC