CFPB amends Regulation P, provides exemptions for annual privacy notice requirement
On August 10, the CFPB issued final amendments to Regulation P, which implements the Gramm-Leach-Bliley Act and provides, among other things, exemptions for financial institutions from sending annual privacy notices to consumers provided they meet certain conditions. The final rule—originally proposed in July 2016 (as previously covered in InfoBytes here)—implements a December 2015 statutory change in Section 75001 of the “Fixing America’s Surface Transportation Act,” which permits certain exemptions provided a qualifying financial institution (i) has not changed its privacy notice from the one previously delivered to its customer, and (ii) limits its sharing of a customer’s nonpublic personal information with nonaffiliated third parties so that a customer does not have the right to opt out, as otherwise afforded under the statute and Regulation P. The final rule will not affect the collection or use of a customer’s nonpublic personal information, and all financial institutions are still required to deliver initial privacy notices to customers. Moreover, the final rule establishes requirements for alternative delivery methods and provides deadlines for financial institutions that lose the exception and are required to resume delivery of annual privacy notices.
The amendments to Regulation P will take effect 30 days after publication in the Federal Register.