The Gramm-Leach-Bliley Act primarily concerns which aspect of consumer information?

• A. Disclose their privacy policy and how a customer's personal information may be used.
• B. Requires privacy notices to regulators only.
• C. Prohibits sharing any information with third parties.
• D. Applies only to mortgage lenders.

Answer: (A)

GLBA centers on what financial institutions must tell customers about their personal information and how that information may be used. The key requirement is that institutions provide a privacy notice to customers that explains what information is collected, how it’s used, and with whom it may be shared, with updates kept on a regular basis. This notice also outlines the customer’s rights to restrict certain sharing in some cases.

Why this is the best fit: it captures the main focus of GLBA in practice—the disclosure of privacy practices and the handling of personal information—rather than prohibiting sharing entirely or restricting duties to regulators. It also clarifies that GLBA applies to a broad range of financial institutions, not just mortgage lenders, and that some sharing with third parties is allowed under the law with proper notices and opt-out provisions where applicable.