The Gramm-Leach-Bliley Act is intended to protect against
unauthorised access and abuse of personal customer information held
by companies operating in the financial sector. It gives
individuals the right to opt out of information sharing among
companies. Although the Act principally affects financial
businesses such as banks, insurance companies, mortgage brokers and
financial advisors, it may also extend to any company requiring
disclosure of personal financial information. How far the Act
extends is the source of confusion for many US businesses and their
advisers.
The US approach to controlling business practices tends to rely
on industry self-regulation rather than government legislation. On
the internet, this usually takes the form of privacy policies which
the Act effectively requires by demanding that companies give
“clear and conspicuous” notice to individuals.
