Proposed Amendments To FTC Regulations Governing Privacy And Consumer Data

The Federal Trade Commission ("FCC") has recently announced that it is seeking comment on proposed amendments to two existing FTC regulations that aim to protect the privacy and security of customer information collected and stored by financial institutions. Specifically, the amendments would modify the "Safeguards Rule" and "Privacy Rule" under the Gramm-Leach-Bliley Act.

The proposed amendments largely focus on establishing additional consumer data security measures that financial institutions will be required to implement. However, the amendments also seek to broaden the scope of the FTC regulations to include online marketing agencies that generate leads on behalf of those businesses that fall within the definition of "financial institutions."