Examining the Gramm–Leach–Bliley Act's opt-out method for protecting consumer data privacy rights on the Internet

Abstract

This article involves examining the Gramm–Leach–Bliley Act's (GLBA) opt-out method in concern with protecting consumer data privacy rights online. Its purpose is to show that further regulatory measures are necessary at the federal level in order to provide better protection for consumers. To lay a foundation, it provides a background on the development of consumer data privacy rights and the collection and dissemination of personal data online and continues by exploring the practices of online merchants, credit card companies, and electronic banking in relation to the treatment of consumers’ data online. Through addressing state, federal, and self-regulatory evolvements, this article makes it apparent that the GLBA, the primary federal law protecting consumers from financial institutions use of consumer data, is insufficient and a revised legal approach for protecting consumer data online is required that is more in line with the progressive approach by the European Union and its opt-in method.