Disposing of Trash: FTC Rule Goes Into Effect Yesterday!

Does your company collect information about employees or applicants regarding such things as employment background? Is your company covered by FACTA? Beginning yesterday, June 1, 2005, a new federal rule requires businesses and individuals to take appropriate measures

to dispose of sensitive information derived from consumer reports. Any business or individual who uses a consumer report for a business purpose is subject to the requirements of the Disposal Rule, a part of FACTA. This law calls for the proper disposal of information in consumer reports and records to protect against “unauthorized access to or use of the information."

This law includes employers, who collect consumer reports, such information relating to employment background, and medical history.

The Rule requires disposal practices that are reasonable and appropriate to prevent the unauthorized access to – or use of the information, such as burning or shredding papers or destroying electronic files or media.

Go here and here for more details!