North Dakota Financial Privacy Law Is Not Preempted
|June 29, 2001|
FTC Says State's Consumer Information Laws Are Preserved
The Federal Trade Commission said today that the North Dakota financial privacy law is not preempted by the Gramm-Leach-Bliley Financial Modernization Act (GLB Act) because it is "not inconsistent" with federal law. In a letter to Gary D. Preszler, Commissioner of the North Dakota Department of Banking and Financial Institutions, the FTC said, ". . . Congress established the privacy protections in the GLB Act as a 'floor,' or minimum protection for consumer privacy, that could be exceeded by the states."
In this case, the newly amended North Dakota statute permits financial institutions operating in that state to be "free simply to comply with the federal requirement" of the GLB Act. Therefore, the state and federal laws are "not inconsistent," and the North Dakota law is preserved.
On September 12, 2000, The North Dakota Department of Banking and Financial Institutions petitioned the FTC for a determination whether its law, the North Dakota Disclosure of Customer Information law was superseded, altered, or affected by GLB, and whether state-chartered financial institutions must comply with GLB Act provisions not addressed under the North Dakota statute.
The Commission vote to issue the letter was 5-0.
Source: Federal Trade Commission