The Financial Privacy Rule of the Gramm-Leach-Bliley Act (GLBA) allows consumers to control how their personal financial information is shared through an opt-out mechanism.
Why is "Opt-Out" a Threat to Data Privacy?
The opt-out model assumes that consumers consent to having their data shared unless they take action to refuse.
Many consumers may not be aware of their right to opt-out, leading to widespread data sharing without explicit consent.
This is less privacy-protective than an opt-in model, where consumers must actively give permission before their data is shared.
A. Opt-in – This would enhance privacy, not threaten it.
B. Safeguard – Refers to data security, not data-sharing policies.
D. Pretexting – Involves fraudulent access to financial data, which is a different issue.
Why Not the Other Options?Thus, the correct answer is C. Opt-out, as it weakens consumer privacy protections by allowing data sharing unless the consumer takes action.
Gramm-Leach-Bliley Act (1999), 15 U.S.C. §§ 6801-6809.
Federal Trade Commission (FTC) Guide to GLBA Opt-Out Provisions.
Nissenbaum, H. (2010). Privacy in Context: Technology, Policy, and the Integrity of Social Life.
References in Ethics in Technology:
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