S 536 IS

To amend the Gramm-Leach-Bliley Act to provide for a limitation on sharing of marketing and behavioral profiling information, and for other purposes.

March 14, 2001

Mr. SHELBY introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

To amend the Gramm-Leach-Bliley Act to provide for a limitation on sharing of marketing and behavioral profiling information, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Freedom From Behavioral Profiling Act of 2000'.

SEC. 2. LIMITATION ON SHARING OF MARKETING AND BEHAVIORAL PROFILING INFORMATION.

Section 502 of the Gramm-Leach-Bliley Act (15 U.S.C. 6802) is amended by adding at the end the following:

`(f) LIMITATION ON SHARING OF MARKETING AND BEHAVIORAL PROFILING INFORMATION-

`(1) LIMITATION- Except as provided in paragraph (2), a financial institution may not disclose to any person--

`(A) any information for the purpose of marketing nonfinancial products to the consumer to whom the information pertains; or

`(B) the identity of any person or entity--

`(i) to whom that consumer has made a payment by check or similar instrument;

`(ii) with whom that consumer has engaged in a credit transaction; or

`(iii) from whom that consumer has received any payment or transfer of funds.

`(2) EXCEPTION- A financial institution may disclose the information listed in paragraph (1) only if--

`(A) the financial institution clearly and conspicuously discloses to the consumer to whom the information pertains, in writing (or other form, including electronic form, permitted by the regulations prescribed under section 504), that such information may be disclosed; and

`(B) the consumer--

`(i) has affirmatively consented in writing to the transfer of such information; and

`(ii) has not withdrawn the consent.'.

SEC. 3. CONFORMING AMENDMENTS.

Section 502 of the Gramm-Leach-Bliley Act (15 U.S.C. 6802) is amended--

(1) in subsection (a), by inserting before the period `, or, in the case of information described in subsection (f)(1), the requirements of subsection (f)(2) have been met';

(2) in subsection (b), by striking the subsection heading and inserting `CONSUMER OPTIONS- '; and

(3) in subsection (b)(1)--

(A) by striking `party unless--' and inserting `party--

`(A) unless--';

(B) by striking `(A) such' and inserting `(i) such' and indenting appropriately;

(C) by striking `(B) the consumer' and inserting `(ii) the consumer' and indenting appropriately;

(D) by striking `(C) the consumer' and inserting `(iii) the consumer' and indenting appropriately;

(E) by striking `option.' and inserting `option; or'; and

(F) by adding at the end the following:

`(B) unless, in the case of information described in subsection (f)(1), the requirements of subsection (f)(2) have been met.'.

END