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The agency must inform individuals about the use of their information under which law?

  1. Fair Credit Reporting Act

  2. Privacy Act of 1974

  3. Freedom of Information Act

  4. Data Protection Act

The correct answer is: Privacy Act of 1974

The Privacy Act of 1974 is designed to protect the privacy of individuals by regulating the collection, maintenance, use, and dissemination of personally identifiable information by federal agencies. Under this law, agencies are required to inform individuals about how their information will be used, shared, and protected. It establishes guidelines for the management of such data and mandates that individuals must be notified of the purpose of the information collection and whether it will be shared with any third parties. This requirement is fundamental in promoting transparency and giving individuals control over their personal information. The other laws mentioned, while important in their respective contexts, do not specifically mandate the same level of interaction or notification regarding the use of personal data by an agency.