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Can you summarize 15 USC Chapter 94, Subchapter I?
PRIVACY > DISCLOSURE OF NONPUBLIC PERSONAL INFORMATION
Short Summary
These legal documents, governed by the United States Code, COMMERCE AND TRADE, PRIVACY, DISCLOSURE OF NONPUBLIC PERSONAL INFORMATION, establish the policy that financial institutions have an obligation to respect the privacy of their customers and protect the security and confidentiality of their nonpublic personal information. The documents require agencies or authorities, excluding the Bureau of Consumer Financial Protection, to establish appropriate standards for financial institutions under their jurisdiction. These standards include administrative, technical, and physical safeguards to ensure the security and confidentiality of customer records and information, protection against threats or hazards to the integrity of such records, and prevention of unauthorized access or use that could harm customers. The documents also outline the enforcement of the subchapter and regulations related to the disclosure of nonpublic personal information, which is carried out by various entities depending on the type of financial institution or person subject to their jurisdiction. The Bureau of Consumer Financial Protection, Federal functional regulators, State insurance authorities, Federal Trade Commission, Board of the National Credit Union Administration, Securities and Exchange Commission, and applicable State insurance authorities are responsible for enforcing the subchapter and regulations. However, the Bureau of Consumer Financial Protection is not responsible for enforcing the standards under section 6801 of this title. The documents also require financial institutions to provide clear and conspicuous disclosures to consumers at the time of establishing a customer relationship and annually thereafter, including information about the institution’s policies and practices regarding the disclosure of nonpublic personal information to affiliates and nonaffiliated third parties, protection of consumer information, and disclosure of information of former customers. The documents grant regulatory authority to the Bureau of Consumer Financial Protection, the Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Federal Trade Commission to prescribe regulations for the disclosure of nonpublic personal information. The regulations apply to financial institutions and other persons subject to the jurisdiction of these agencies. State insurance authorities retain their authority to adopt regulations for this subchapter. The documents also address the relation of the subchapter and its amendments to State laws, stating that the subchapter and its amendments do not supersede, alter, or affect any statute, regulation, order, or interpretation in effect in any State, except to the extent that such State law is inconsistent with the provisions of this subchapter. In such cases of inconsistency, the State law is only affected to the extent of the inconsistency. Additionally, the documents require the Secretary of the Treasury, in conjunction with the Federal functional regulators and the Federal Trade Commission, to conduct a study of information sharing practices among financial institutions and their affiliates. The study aims to examine various aspects such as the purposes for sharing confidential customer information, the security protections for such information, the potential risks and benefits for customers and financial institutions, the adequacy of existing laws to protect customer privacy, the adequacy of privacy policies and rights disclosure, and the feasibility of different approaches to allow customers to control the sharing of their confidential information. The Secretary is required to consult with representatives of State insurance authorities, financial services industry, consumer organizations, privacy groups, and the general public. A report containing the findings, conclusions, and recommendations for legislative or administrative action is to be submitted to Congress by January 1, 2002. These documents provide definitions for various terms used in the context of the disclosure of nonpublic personal information and clarify the scope and applicability of these terms in relation to privacy and commerce. Certain exemptions for financial activities, entities, and institutions are also mentioned.
Whom does it apply to?
Financial institutions
What does it govern?
Disclosure of nonpublic personal information
What are exemptions?
Disclosures necessary for transaction administration, fraud prevention, or compliance with legal requirements
What are the Penalties?
No specific penalties are mentioned in these documents.
Jurisdiction
U.S. Federal Government