Gramm-Leach-Bliley Act could compromise client confidences.

A federal law intended to protect consumers' private information could wind up revealing client confidences if--as the Federal Trade Commission asserts it should be -- it is applied to lawyers, according to the ABA.

The association has received a letter from the FTC saying it cannot exempt the legal profession from the provisions of the Gramm-Leach-Bliley Act (GLB). ABA President Robert E. Hirshon, in an open letter to all lawyers, said the association would contest that ruling in other venues.

The Florida Bar took a legislative position last summer saying the law should not apply to lawyers in their dealings with clients.

The law requires certain financial institutions to give consumers notices detailing how the consumers' privacy and confidential information is being protected. Those institutions are defined as those involved in leasing real or personal property or advising in such leases; debt collection, financial advisory activities including management consulting or counseling activities; and tax planning, preparation, and advising.

Experts said the broad interpretation of the law has reached many nontraditional service providers, including travel agencies, health care providers, some retailers, and securities firms.

The ABA has argued the law should not apply to lawyers because their ethical duties related to the attorney-client privilege is already stricter than the law. Last year it asked the FTC for a ruling that the law did not cover lawyers.

In a letter dated April 8, FTC Director J. Howard Beales said the agency lacked the authority to do that.

"[T]here are significant questions as to the...