When must a licensee provide the initial privacy notice to consumers?

The correct answer is that a licensee must provide the initial privacy notice to consumers no later than when establishing a customer relationship and before disclosing information. This requirement is crucial because it ensures that consumers are informed about how their personal and financial information will be collected, used, and protected from the very beginning of the relationship. By providing this notice early on, consumers have a clear understanding of their privacy rights and how their information may be shared, allowing them to make informed decisions regarding their interactions with the licensee.

This timing is particularly important because it aligns with regulations aimed at consumer protection, ensuring transparency in the handling of personal information. By presenting the privacy notice at the establishment of the customer relationship, the licensee complies with legal obligations and promotes trust and clarity in the business relationship.