| Subject: |
Model Privacy Notice |
|
| Description:
|
Proposed Rule |
|
Date: March 29, 2007 |
| TO: |
Chief Executive Officers of All National Banks, Department and Division Heads, All Examining Personnel and Other Interested Parties
|
The Office of the Comptroller of the Currency, Office of Thrift Supervision, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, Federal Trade Commission, Commodity Futures Trading Commission, and Securities and Exchange Commission (the agencies) are requesting comment on a model privacy notice that financial institutions may use to provide disclosures under the Gramm–Leach–Bliley Act (GLBA) and the agencies’ implementing regulations. The model privacy notice is the product of extensive consumer testing, conducted by a private contractor for the agencies, to develop a privacy notice that is easy for consumers to read and use. Section 728 of the Financial Services Regulatory Relief Act of 20061 required the agencies to publish a proposed model privacy notice by April 11, 2007. The proposed rule was published in the Federal Register on March 29. The comment period ends on May 29.
Current 12 CFR Part 40 contains sample clauses that a bank may use in its privacy notice, and use of those clauses constitutes compliance with Part 40. The proposal would amend Part 40 by replacing the sample clauses with the model privacy notice. After a transition period of one year, financial institutions would no longer obtain a safe harbor by using the sample clauses. Privacy notices using the sample clauses that are provided to consumers (either in paper form or by electronic delivery such as e-mail) within the one-year transition period would have a safe harbor for one additional year, or until the next annual notice. Privacy notices provided after the one-year transition period would no longer obtain a safe harbor, including notices posted electronically to meet the annual notice requirement.
In order to use the model form as a safe harbor, institutions generally must use the order and wording that appears in the model notice. The proposed rule specifies certain institution-specific information that may be varied. Aside from these limited customizations, an institution may not add or remove substantive content from the model notice. Institutions must also conform to the general layout and appearance of the model notice. The proposed rule does, however, permit institutions to insert their logos on the form, and such things as fonts and paper color may be customized within certain parameters.
The proposed rule requests comment on all aspects of the model form itself, including format and content. Among other things, the agencies specifically solicit comment on possible approaches to the next phase of consumer testing; the likelihood that institutions will use the model form; the proposal’s replacement of the sample clauses with the proposed model form; the desirability of the agencies’ developing a design specifically suited for electronic notices; the types of identifying information institutions need customers to provide when they exercise their opt-out rights; and whether institutions intend to incorporate into the model form the disclosure and opt-out for affiliate marketing required by section 624 of the Fair Credit Reporting Act (FCRA).
For further information, contact Amy Friend, Assistant Chief Counsel, Office of the Chief Counsel at (202) 874-5200; Heidi Thomas, Special Counsel, or Jonathan Mitchell, Attorney, Legislative and Regulatory Activities Division at (202) 874-5090; or Paul Utterback, NBE Compliance Specialist at (202) 874-4428.
/signed/
Julie L. Williams
First Senior Deputy Comptroller and Chief Counsel
|
Note: attachment is too large to print, but may be downloaded at the link below.
| Attachment: |
72 FR 14939 |
| |
[http://www.occ.treas.gov/fr/fedregister/72fr14939.pdf] |
____________________________
1Pub. Law 109-351 (Oct. 13, 2006). Section 728 is codified at 15 USC 6803(e).
|
|
|
