How often must the annual privacy notice be sent to consumers with a continuing customer relationship?

The correct choice is that the annual privacy notice must be sent to consumers with a continuing customer relationship at least once every 12 consecutive months. This requirement is established under various privacy regulations, such as the Gramm-Leach-Bliley Act (GLBA) in the United States, which mandates that financial institutions inform consumers about their privacy practices on a regular basis.

The rationale for providing this notice annually is to ensure that consumers are kept informed about how their personal information is being used, shared, and protected. Regular updates help maintain transparency and trust between the business and its customers. By receiving the notice at least once a year, consumers have the opportunity to review the company's current privacy practices and understand their rights in relation to their personal information.

While other frequencies, such as monthly or bi-annually, may seem like they could offer more frequent updates, they are not required and may overwhelm consumers with information. Additionally, privacy notices only upon request do not fulfill the proactive communication standard set by regulations. Overall, the annual cadence ensures consumers are adequately informed while balancing the need for clarity and minimal disruption.