Thesis
The law I will explore in this paper will be the Gramm Leach Bliley Act. The law is primarily on the protection of consumer financial information, which limits the mergers of the institutions dealing with finances (Walrath, 2017). In my view, this restriction of sharing personal information to the third party guarantees durable protection as well as ensure maximum privacy to data and sensitive personal information. Moreover, this aspect of the law alleviates risks of financial losses through the prohibition of unwarranted sharing of information.
Background
Gramm Leach Bliley Act was passed in 1999 to guide the information sharing practices of financial institutions that have the mandate to protect the privacy of its consumers. The law was designed to highlight privacy risks that come with the unauthorized access of personal data. In the case of U.S . Bankcorp, which occurred in June 1999, where Minnesota Attorney General opened a lawsuit against the institution for breaching its customer’s privacy ( Ghosh, 2019) . The U.S. Bankcorp shared customers with a third-party in the infringement of its guidelines minus customer awareness or consent.
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Adequacies and Inadequacies
The positive aspect of GLBA is that it has provided cover to personal data, which without the law in the first place, consumers would not have their information protected, which means that breaches would be on the rise (Lin & Li, 2017). On the other hand, the inadequacy with the law is that it limits the consumer’s protection underhandedly, leaving them with the burden of protecting their privacy with the opt-out policies weakening the consumers’ ability to monitor their financial information.
Proposed Changes
At present, the status of the Gramm Leach Bliley Act stipulates that there is no private right of action. In conjunction with the state, persons should be given the right to act and seek the protection of their privacy as well as work toward solutions alongside redress under the act.
Conclusion
The proposal should be adopted for it gives consumer’s privacy the critical priority. When customers are in a position to control their privacy, and the GLBA act is tailored entirely to meet the consumer needs, there will be a lesser breach of information as well as other privacy risks. The law should be directly in touch with the customers to act effectively on their grievance and redress when such cases arise.
References
Ghosh, A. (2019). Discerning the impact of disaggregated non-interest income activities on bank risk and profits in the post-Gramm-Leach-Bliley Act era. Journal of Economics and Business , 105874.
Lin, J. H., & Li, X. (2017). Regulatory policies on Gramm-Leach-Bliley consolidation of commercial banking, shadow banking, and life insurance. Journal of International Financial Markets, Institutions, and Money , 50 , 69-84.
Walrath, D. (2017). Privacy and Information Disclosure: An Economic Analysis of the Gramm-Leach-Bliley Act. Policy Perspectives , 24 , 55-65.
