Under which act must financial institutions disclose their information-sharing practices to customers?

The Gramm-Leach-Bliley Act (GLBA) is the legislation that requires financial institutions to disclose their information-sharing practices to customers. This act was established to enhance consumer protection and privacy, particularly in the way financial institutions handle and share personal financial information. Under the GLBA, financial institutions must provide a privacy notice that explains what information they collect, how they use it, and to whom they may disclose it. This ensures that consumers have a clear understanding of how their personal information will be treated, allowing them to make informed decisions regarding their financial relationships.

The other acts mentioned, such as the Truth in Lending Act, primarily focus on ensuring that consumers receive clear information about the costs of credit, while the Equal Credit Opportunity Act aims to prevent discrimination in lending. The Sarbanes-Oxley Act deals with corporate governance and financial disclosures. None of these acts specifically target the disclosure of information-sharing practices in the same way that the Gramm-Leach-Bliley Act does, which directly addresses privacy and consumer rights in the financial sector.