What is the primary purpose of the Gramm-Leach-Bliley Act (GLB Act)?

The primary purpose of the Gramm-Leach-Bliley Act (GLB Act) is to protect consumers' personal financial information. Enacted in 1999, this legislation established important provisions that require financial institutions to implement privacy policies and safeguard the sensitive information of consumers. The GLB Act mandates that financial institutions must disclose their information-sharing practices to consumers and gives consumers the right to opt-out of having their personal information shared with non-affiliated third parties. This focus on consumer privacy reflects an acknowledgment of the increasing risks associated with the sharing and handling of personal financial data in a digital economy. Therefore, the emphasis on protecting consumer privacy and ensuring transparency about information use is central to the GLB Act's objectives.