FTC Proposal Could Broaden Privacy Laws

The Federal Trade Commission proposed new rules to protect consumers’ financial privacy that could apply to a wide range of businesses not usually thought of as financial institutions. Under the rules, travel agents, retailers, manufacturers, property appraisers and tax advisors could face the same new restrictions as banks, brokers and insurers in collecting and using some information about their customers. The legislation requires financial firms to disclose their policies on collecting, using and protecting customer information. It calls for for bank, securities and insurance regulators to enforce privacy rules for those sectors, while the FTC is responsible for all other businesses engaged in “financial activities.” That broad term could cover everything from a department store that offers credit cards to firms providing financial advice or even travel services.