The Gramm-Leach-Bliley Act requires disclosure of privacy policies for what purpose?

• A. Disclose privacy policy and how information is used.
• B. Disclose to regulators only.
• C. Prohibit sharing of any information.
• D. Apply only to non-financial services.

Answer: (A)

GLBA privacy notices exist to make clear to customers how a financial institution handles their information. The key purpose is to disclose the institution’s privacy policy and how information is used and shared, so customers understand what data is collected and what may happen with it. This isn’t just about regulators; the notices are for customers, and they often include how to opt out of certain sharing.

That’s why the best choice is to disclose the privacy policy and how information is used. The other options don’t fit: it’s not only for regulators, it doesn’t categorically prohibit sharing, and GLBA applies to financial institutions, not exclusively to non-financial services.