What does GLBA stand for?

The correct answer, Gramm-Leach-Bliley Act, refers to a significant piece of legislation enacted in the United States in 1999. The GLBA primarily focuses on financial privacy and the protection of consumer information held by financial institutions. It established guidelines and requirements for how financial institutions must handle and protect customer data, emphasizing the need for transparency in their privacy practices and policies.

Under the GLBA, financial institutions are required to provide a privacy notice to consumers, informing them about how their information is collected, used, and shared. Additionally, the act allows consumers to opt out of having their personal information shared with non-affiliated third parties, which underscores the law's commitment to consumer privacy rights.

Understanding this act is critical for compliance with privacy standards in the financial sector, as it helps ensure that consumer data is safeguarded adequately while allowing institutions to conduct their business effectively.