Memo to ABA Members re: Gramm-Leach-Bliley Act
July 10, 2003
The following message was sent to the state and local bar association
executive director listservs on behalf of ABA President, Alfred P.
Carlton, Jr. and as a service of the ABA Division for Bar Services.
Memo to ABA Members from ABA President, Alfred P. Carlton, Jr. re:
Gramm-Leach-Bliley Act
Memorandum to our Members:
As many of you know, the American Bar Association has challenged in
federal district court in the District of Columbia the FTC's view that
lawyers who provide real estate, tax and any other financially related
advice to individuals are covered by the privacy provisions of the
Gramm-Leach-Bliley Act ("Act"). I attended the oral argument a few weeks
ago, it went well for us and I am optimistic about the outcome.
Last Friday the Court advised us that it would be releasing its
opinion in mid-July but that it was "concerned" about the July 1
deadline for filing annual privacy notices. To address this concern, our
lawyers have prevailed upon the FTC to issue a letter stating that it
will not bring an enforcement action against any lawyer for failing to
comply with the notice provisions of the Act prior to the Court's
forthcoming decision.
You can read the letter yourself at http://www.abanet.org/poladv/glbfactsheet/amnestyletter.pdf,
but as I read the FTC's letter, it means that if you missed the July 1
deadline this year for sending notices of your "privacy policy" to your
individual clients, you will not be subject to an enforcement action by
the FTC--even if its interpretation is eventually sustained by the
courts.
Of course, I am hopeful that the FTC's view that lawyers are covered
by the Act will be struck down by the DC federal court and upheld on
appeal. I will let you know as soon as the court renders its
opinion.
Alfred P. Carlton, Jr.
President, American Bar Association
For more information on Gramm-Leach-Bliley Act please go to www.abanet.org/poladv/glbfactsheet.html
