House Approves Legislation to Eliminate Duplicative Consumer Privacy Notices

The U.S. House of Representatives approved by a voice vote on April 14 an amendment to the Gramm-Leach-Bliley Act that will provide an exemption from annual privacy notice updates for financial institutions that do not share non-public consumer information with unaffiliated third parties or make changes to their privacy policies. Currently, a financial institution is required to send out privacy notices annually, even if its privacy policy has not changed and it does not share customer information.

The legislation was considered under "suspension of the rules," a process reserved for noncontroversial legislation that limits debate to 40 minutes, bars any amendments, and requires a two-thirds majority vote for passage. The measure bypassed a vote by the House Financial Services Committee and went straight to the House floor, with the blessing of Committee chairman Barney Frank (D-Mass.) and ranking member Spencer Bachus (R-Ala).

There is currently no companion bill in the Senate, but there is at least a reasonable possibility that a companion bill will be introduced into and passed by the Senate during this session.

Authored By:

Sherwin F. Root
(213) 617-5465
[email protected]

Neither the content on this blog nor any transmissions between you and Sheppard Mullin through this blog are intended to provide legal or other advice or to create an attorney-client relationship.

In communicating with us through this blog, you should not provide any confidential information to us concerning any potential or actual legal matter you may have. Before providing any such information to us, you must obtain approval to do so from one of our lawyers.

By choosing to communicate with us without such prior approval, you understand and agree that Sheppard Mullin will have no duty to keep confidential any information you provide.
Post A Comment / Question






Remember personal info?


Send To A Friend Use this form to send this entry to a friend via email.