How often is a licensee required to review and update its privacy notice?

The requirement for a licensee to review and update its privacy notice at least annually or when policies change is grounded in the need for transparency and accountability in handling personal information. This ensures that customers are aware of how their data is being used and what protections are in place to safeguard their information.

Regularly reviewing the privacy notice allows organizations to adapt to any changes in laws or regulations, as well as shifts in their data practices. This not only helps maintain compliance but also fosters trust between the licensee and its clients by demonstrating a commitment to protecting privacy. Moreover, customer demands and expectations regarding privacy can evolve, making it essential for companies to ensure that their notices accurately reflect current practices.

In contrast, the other options suggest less frequent reviews or actions contingent on customer requests, which could lead to outdated information being presented to consumers. This can undermine trust and potentially expose the organization to compliance risks if privacy practices do not align with the notice provided. Therefore, the practice of annual reviews or updates upon policy changes stands as a best practice in the field of privacy management.