Under which federal law must a consumer receive notice of an entity's privacy practices annually?

The correct answer is the Gramm-Leach Bliley Act. This law requires financial institutions to provide consumers with a notice of their privacy practices annually. It aims to protect consumers' private financial information by informing them about how their data is collected, used, and shared. The Gramm-Leach Bliley Act mandates that consumers receive this notice so they are aware of their rights and how to manage their personal information, fostering transparency and trust between financial institutions and their clients.

The Fair Credit Reporting Act primarily deals with the accuracy and privacy of information held by credit reporting agencies, ensuring consumers have specific rights regarding their credit information rather than focusing on privacy practices. The Red Flags Rule addresses identity theft prevention by requiring financial institutions to have a program to detect warning signs of identity theft, yet it does not specifically involve annual privacy notices. The Privacy and Identity Protection Act is not a recognized federal law in the context of financial institutions and consumer privacy rights.