What does the Gramm-Leach-Bliley Act (GLBA) restrict regarding consumer information?

The Gramm-Leach-Bliley Act (GLBA) fundamentally addresses the handling of consumer financial information by financial institutions. One of its key provisions is to enhance consumer protection concerning their personal financial data. This law specifically prevents financial institutions from disclosing nonpublic personal information about consumers to non-affiliated third parties without first providing those consumers with notice of the institution's practices and an opportunity to opt out of such disclosures. This means that consumers must be informed of how their information will be used and must be given a choice to restrict certain types of information sharing, thereby promoting consumer privacy and control over their data.

This approach goes beyond a blanket prohibition or requirement for consent; instead, it ensures that consumers are aware of their rights regarding personal information and can make informed decisions about its disclosure. Thus, the correct answer accurately reflects this significant aspect of consumer protection as mandated by the GLBA.