Bar News - October 18, 2002
ABA Files Suit to Exempt Attorneys from Privacy Act
ABA Files Suit to Exempt Attorneys from Privacy Act
Clarifying Act Also Introduced
ON SEPT. 25, 2002, outside counsel filed suit on behalf of the American Bar Association against the Federal Trade Commission seeking declaratory judgment to establish that the Gramm-Leach-Bliley Act, Title V, Subtitle A does not and should not apply to lawyers. (The New York State Bar Association had previously filed its own suit, but the situation in New York might be distinct from that in other states.)
The Gramm-Leach-Bliley Act requires financial institutions to provide to their customers notice of their policies for the protection of individually identifiable personal information, as well as opportunity to opt out of most disclosures of such information to third parties. The FTC determined that law firms and sole practitioners "significantly engaged in financial activities" are considered financial institutions and are subject to the requirements of the Act. The ABA op poses the imposition of these rules upon the legal community and filed suit seeking the declaratory judgment.
Also on Sept. 25, Congresswomen Judy Biggert (R-IL) and Carolyn Maloney (D-NY) and at least six other cosponsors introduced the Judicial Code of Conduct Privacy Clarification Act to exempt attorneys from Gramm-Leach-Bliley.
Below is the statement of ABA President Alfred P. Carlton, Jr., on the lawsuit brought forth by the ABA to end application of Gramm-Leach-Bliley to lawyers. A copy of the suit is available at the ABA's Web site at www.abanet.org/poladv/glbfactsheet/complaint.pdf.
For more information on ABA action or to view or the relevant legislation, visit the Legislative and Governmental Advocacy page on the ABA's Web site at www.abanet.org/poladv/new.html.
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