FTC Proposes GLBA Privacy Rule Amendments Allowing Online Delivery of Annual Privacy Notices | Practical Law

FTC Proposes GLBA Privacy Rule Amendments Allowing Online Delivery of Annual Privacy Notices | Practical Law

The FTC has proposed amendments to its Privacy of Consumer Financial Information Rule under the Gramm-Leach-Bliley Act (GLBA) to allow covered motor vehicle dealers to deliver their annual privacy notices to customers by posting them online.

FTC Proposes GLBA Privacy Rule Amendments Allowing Online Delivery of Annual Privacy Notices

by Practical Law Intellectual Property & Technology
Published on 23 Jun 2015 • USA (National/Federal)
The FTC has proposed amendments to its Privacy of Consumer Financial Information Rule under the Gramm-Leach-Bliley Act (GLBA) to allow covered motor vehicle dealers to deliver their annual privacy notices to customers by posting them online.
On June 19, 2015, the FTC published for comment proposed amendments to its Privacy of Consumer Financial Information Rule (16 C.F.R. § 313.1 et seq.), which applies to motor vehicle dealers that finance consumer purchases. The proposed amendments would:
  • Revise definitions and other language to reflect changes to the FTC's GLBA rule-making authority under the Dodd-Frank Act.
  • Provide an alternative means to deliver annual privacy notices required by the GLBA that bring the FTC's rule in line with recent amendments to the Consumer Financial Protection Bureau's (CFPB) Privacy Rule (see Legal Update, CFPB Finalizes Rule Permitting Online Posting of Privacy Notices).
Currently, the FTC rule requires that covered motor vehicle dealers provide their customers with an annual notice of their privacy policies by hand delivery, mail or electronic delivery, though they may satisfy the delivery requirement through website posting under limited circumstances. The proposed amendment would permit dealers to deliver the annual privacy notice by posting it online if they do not share information in such a way that customers have opt-out rights under the GLBA.
Under the amended rule, dealers would be required to:
  • Notify consumers on a yearly basis that the policy is viewable online as part of some other legally required document provided to customers.
  • Provide customers with a written copy of the notice upon request.
  • Send a copy of any revised policy to customers in writing if the dealer's privacy policy has changed since the customer was last provided a written notice.
  • Maintain the privacy notice so that customers may review it throughout the year.
The proposal does not affect:
  • The collection or use of consumers' nonpublic personal information.
  • Consumers' statutorily-guaranteed rights to get privacy information and opt-out rights.
The FTC seeks comments relating to:
  • The revised rule generally.
  • The specific issues outlined in the Section-by-Section Analysis of the proposed rule.
  • Whether, and the extent to which, the FTC's rule applicable to motor vehicle dealers should be consistent with the CFPB rules, or if there are elements that should differ.
Comments must be received by August 31, 2015.