Regulators Issue Final Model Privacy Notice
On November 17, eight federal regulators issued final rules and model privacy notice forms as required under the Gramm-Leach-Bliley Act. While the use of the notice forms are not required, the two-page forms create a safe-harbor for disclosures required under the GLBA.
The notice forms replace the Sample Clauses previously issued by the regulators. The regulators stated that their studies “confirm[ed] that a notice composed solely of the Sample Clauses promotes ease of scanning to perform simple tasks – because the notice is short and not because it is understandable – but the Sample Clauses do not do well on comprehension measures. Moreover, the testing showed that current notices – in which the Sample Clauses are typically embedded – do poorly on all measures.” Therefore, the regulators appear to want to increase the use of the model clauses as much as possible.