Which statement about opt-out options under GLBA is true?

Which statement about opt-out options under GLBA is true?

• A. Opt-out options must be offered for certain sharing, and customers have the right to limit sharing of nonpublic personal information.
• B. Opt-out options are never required for any sharing.
• C. Opt-out options allow unlimited sharing.
• D. Opt-out options can be ignored if the customer is loyal.

Answer: (A)

Under GLBA, financial institutions must give customers a privacy notice and offer an opt-out for certain sharing of nonpublic personal information with nonaffiliated third parties. This means customers have the right to limit how their information is shared in those situations, providing a practical privacy protection even when the sharing is allowed under the rule. The opt-out requirement applies specifically to the types of sharing covered by the GLBA privacy rule, not to every possible disclosure. It does not permit unlimited sharing, and a customer’s loyalty does not override the need to respect an opt-out option.

Under GLBA, financial institutions must give customers a privacy notice and offer an opt-out for certain sharing of nonpublic personal information with nonaffiliated third parties. This means customers have the right to limit how their information is shared in those situations, providing a practical privacy protection even when the sharing is allowed under the rule. The opt-out requirement applies specifically to the types of sharing covered by the GLBA privacy rule, not to every possible disclosure. It does not permit unlimited sharing, and a customer’s loyalty does not override the need to respect an opt-out option.