What is the purpose of consumer privacy notices under GLBA?

• A. To inform customers how their nonpublic personal information is collected, used, and shared, and to provide rights to limit sharing.
• B. To advertise products and services to customers.
• C. To disclose marketing preferences.
• D. To provide security warnings about phishing.

Answer: (A)

Under GLBA, financial institutions must clearly disclose how they handle your nonpublic personal information. The privacy notice explains what information is collected, how it’s used, with whom it’s shared, and what options you have to limit that sharing. This promotes transparency and gives you a say in how your data is used, including the right to opt out of sharing with certain third parties. The notice is typically provided when you open an account and again annually, aligning with the goal of letting you understand and control your privacy. Other options described—advertising, marketing preferences, or security warnings—are not the primary purpose of these notices.