Which legislation prevents a financial institution from disclosing a consumer's nonpublic personal information to an unaffiliated third party unless it provides notice to the consumer and allows the consumer an opportunity to opt out?

The Gramm-Leach-Bliley Act (GLBA) is the correct answer because it specifically establishes requirements for financial institutions regarding the handling of consumers' nonpublic personal information. Under GLBA, financial institutions must provide clear and conspicuous notice of their information-sharing practices to consumers. This notice must inform consumers that they have the right to opt-out, meaning they can request that their information not be shared with unaffiliated third parties.

The purpose of this legislation is to protect consumers’ personal privacy in financial settings, ensuring that they are aware of how their information is used and giving them control over its disclosure. This emphasis on transparency and consumer rights is a crucial element of the GLBA, differentiating it from other legislation that may focus on different aspects of consumer protection.

Other legislation mentioned, like the Fair Credit Reporting Act (FCRA), addresses how consumer credit information can be collected, shared, and utilized but does not specifically encompass the consumer opt-out provisions related to nonpublic personal information covered by the GLBA. Similarly, the Consumer Privacy Protection Act and the Right to Financial Privacy Act focus on different aspects of consumer rights and privacy, and do not specifically encapsulate the opt-out requirement seen in the GLBA.