Current Privacy Legislation

Privacy Legislation


Current Privacy And Shredding Legislation

Responsibility for identity theft and corporate espionage can be directly attributed to businesses and institutions that fail to conduct the due diligence necessary for the protection of private information under their control.

New Legislation For Privacy Standards

In recent years, federal and state legislation has been put in place to ensure that all organizations in America adhere to reasonable privacy standards. Businesses are now liable for the protection of private information from the time that information is collected or created to the time it is destroyed. Every business in the United States — from single–employee, home–based operations to Fortune 500 organizations — is required, by law, to properly protect and dispose of confidential information.

FACTA Disposal Rule

The FACTA Disposal Rule enacted by the federal government in 2005 delineates that "reasonable measures need to be taken to protect against unauthorized access to or use of the information in connection with its disposal." According to the law, "reasonable measures" for dealing with confidential material means such material must be "shredded, pulverized or burned so that the documents containing confidential information cannot be read or reconstructed."

HIPAA And GLBA On Industry-Specific Legislation

Industry-specific legislation such as HIPAA and GLBA have placed particular restrictions on health care and financial services organizations regarding the protection and destruction of private papers. The Identity Theft Penalty Enhancement Act (ITPE) and Economic Espionage Act (EEA) are two other pieces of shredding legislation that have reinforced the overall need for organizations to take reasonable measures to safeguard private documents.

ID Theft Laws In Individual States

Individual states are creating their own specific laws to ensure that consumers and businesses are protected from identity theft and corporate espionage. State legislation takes federal legislation a step further, mandating that organizations have explicit procedures and policies in place to protect private information.

What Happens When You Fail To Comply?

The consequences for failing to maintain legislative compliance include serious fines and penalties; companies and organizations of all sizes need a secure, convenient, cost-effective and environmentally conscious system in place for the disposal of confidential materials. Find out more about PROSHRED's comprehensive shredding services and secure document destruction process.