*FTC Privacy Rules Use Broad Definition of Financial Institution

Share this content:
The Federal Trade Commission yesterday issued for public comment proposed privacy rules that contain a very broad definition of the term "financial institution" and thus subject a wide range of businesses to the Gramm-Leach-Bliley Act. The act is a financial modernization law passed last year that will allow banks, securities firms and insurance companies to enter into one another's businesses.


As expected, the FTC's definition of what constitutes a financial institution includes several entities not traditionally considered in the same business sector as banks and securities firms. Included in the FTC's definition are retailers that issue credit, manufacturers of computer hardware and software, travel agencies operated in connection with financial services, real-estate appraisers, personal-property appraisers and career counselors for employees in financial occupations.


Any firms in those fields that offer a financial product to consumers or households would have to notify customers of their privacy policies and give them the chance to opt out of having their financial information shared with other companies.


The FTC's rules, which follow other rules issued earlier in the month by other government agencies, including the Federal Reserve Board and the Office of the Comptroller of the Currency, are open to public comment until March 31. The agencies will then draft the final regulations, which are scheduled to become effective in November.
close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here