What is the main purpose of the Gramm-Leach-Bliley Act?

The main purpose of the Gramm-Leach-Bliley Act is to establish privacy protections for consumers in the financial services sector. It requires financial institutions to explain their information-sharing practices to consumers and give them the right to opt out of having their personal data shared with non-affiliated third parties. This law aims to ensure that individuals' financial information is safeguarded, addressing growing concerns about consumer privacy as the financial services industry became more interconnected.

While fraud prevention and protection against insolvency or terrorism may involve regulations in financial contexts, they are not the primary focus of the Gramm-Leach-Bliley Act. Instead, the Act explicitly mandates the importance of consumer privacy, reinforcing the expectation that financial institutions handle personal data responsibly and transparently.