When must licensees provide privacy notices to individual customers?

• A. Annually
• B. Semi-annually
• C. Quarterly
• D. Upon first contact only

Answer: (A)

The concept being tested is how often an individual customer must be given a privacy notice. Under the Gramm-Leach-Bliley Act and related state rules, licensees must provide a privacy notice when a customer relationship is first established and then again on an annual basis. This annual notice keeps customers informed about what information is collected, how it’s used, with whom it can be shared, and their right to opt out of certain sharing. The annual requirement is the baseline, so notices aren’t limited to just the first contact or to more infrequent schedules. If privacy practices change, a new notice may be required, but the ongoing obligation is to distribute it yearly.