FTC Credit Rule Could Signal More Shredding
The Federal Trade Commission is seeking comments on a proposed rule that would relate to the Fair and Accurate Credit Transactions Act (FACTA) and the Fair Credit Reporting Act (FCRA).
The proposed rule, currently known as 16 CFR Part 682, relates to the "disposal of consumer report information and records, pursuant to the Fair and Accurate Credit Transactions Act of 2003."
According to a news release issued by the FTC, the purpose of the rule is to "reduce the risk of consumer fraud, including identity theft, created by improper disposal of any record that is, or is derived from, a consumer report."
The proposed rule requires that any person or company possessing or maintaining covered consumer information "take reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal." The proposed standard for disposal is "flexible to allow covered persons to make decisions appropriate to their particular circumstances," according to the FTC.
Several types of records are specifically mentioned in the proposed rule, although the term "disposal" is not clearly defined.
Records covered include, "Any record about an individual, whether in paper, electronic or other form, that is a consumer report or is derived from a consumer report. [This] includes all types of records that are consumer reports or contain consumer information derived from consumer reports [that] identify any particular consumers."
Regarding destruction methods, the proposed rule states that entities possessing the consumer information "take reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal."
The FTC has not favored any single technology, noting that such technology is changing rapidly. "The Commission recognizes that there are few foolproof methods of record destruction," the rule states. "Accordingly, the proposed rule does not require covered persons to ensure perfect destruction of consumer information in every instance; rather, it requires covered entities to take reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal. The Commission expects that entities covered by the proposed rule would consider the sensitivity of the consumer information, the nature and size of the entity’s operations, the costs and benefits of different disposal methods and relevant technological changes. ‘Reasonable measures’ are very likely to require elements such as the establishment of policies and procedures governing disposal, as well as appropriate employee training."
While standards for destruction are not set, examples are given, however. These include, "Implementing and monitoring compliance with policies and procedures that require the burning, pulverizing or shredding of papers containing consumer information so that the information cannot practicably be read or reconstructed," and, "Implementing and monitoring compliance with policies and procedures that require the destruction or erasure of electronic media containing consumer information so that the information cannot practicably be read or reconstructed."
The Commission has set its comment period to end in mid-June. "The FTC expects that entities subject to the proposed rule will make decisions about what measures are reasonable based on the sensitivity of the information at issue, the costs and benefits of different disposal methods and relevant technological changes," the FTC news release states. "The proposed rule’s flexible standard also is intended to minimize the burden of compliance for smaller entities."
The Commission is seeking comment on all aspects of the proposed rule, with a deadline of June 15, 2004. Text of the rule can be found online at the FTC’s Web site at www.ftc.gov/os/2004/04/040415factafrn.pdf.
Paper is Conference Topic
Collecting, processing and selling scrap paper is the focus of the 2004 Paper Recycling Conference & Trade show, taking place in the Atlanta area this year in late June.
Presented by the Recycling Today Media Group and its parent company, GIE Media Inc., the Conference has been held each year since 2000. This year’s event takes place June 27-29 at the Renaissance Waverly Hotel in suburban Atlanta.
The conference includes several panel discussions and educational sessions featuring speakers from leading paper recycling and paper producing companies. Topics cover paper recycling throughout its collection, processing and marketing stages, with the document destruction sector being the focus of one session at this year’s event.
In addition to the sessions, the Paper Recycling Conference & Trade Show also features an exhibit hall with displays from equipment and service suppliers, several networking events, and the opportunity to make appointments with or attend the private receptions of key trading partners.
The Paper Recycling Conference on document destruction is being moderated by John Ockenfels of City Carton Co., Iowa City, Iowa. Topics covered at the session will include the rapid growth of the document destruction and shredding industry as well as processing considerations, such as packing an effective load.
Also addressed will be the plethora of state and federal legislation that is affecting this business, and the opportunities and challenges involved with them.
Additionally, the panel will take a look at the shredded fiber stream from a paper mill buyers’ perspective. What are some of the concerns that mill buyers may have? How can packers meet quality expectations? And what are some of the challenges to handling this material?
More information on the 2004 event can be found at www.paperrecyclingconference.com or by calling the GIE Conference Division at (800) 456-0707.
Secure Ecoshred Expands
Secure Eco Shred, Farmington, Mich., has moved beyond the Detroit area market. The company has set up office and plant space in the Chicago area, and will begin operating a mobile shredding truck in May.
According to a news release, the expansion will allow Secure Eco Shred to offer secure disposal services throughout Illinois.
"We’re excited about establishing an office in a major metropolis such as Chicago," says Steve Kalapos, president of Secure Eco Shred. "Secure shredding is a critical component of records management for businesses today. Our industrial shredders render materials into tiny, unrecognizable pieces and are then bundled and recycled to help preserve the environment."
Secure Eco Shred destroys and recycles more than 500,000 pounds of paper per month. The company, which has been in business for about four years, operates four Shred-Tech mobile shredding trucks in Michigan, as well as a shredder and baler at its Detroit-area plant.
Since its inception, the company has seen a sharp increase in business, with sales climbing by close to 70 percent last year.
Kalapos says the company hopes to open an additional office in the Grand Rapids, area by the end of the year. The company is already serving clients throughout Michigan, including the Grand Rapids/Western Michigan region.
Profits to Burn in Buffalo
American Document Destruction Services, based near Buffalo, is expanding its services into other parts of New York, according to a report in the Central New York Business Journal.
American Document Destruction Services President Kenneth Knight credits client requests as the reason the Grand Island, N.Y., firm is adding a Syracuse location.
He notes the company has several customers in the region and that he is interviewing candidates for the general manager position in Syracuse.
American Document Destruction Services offers a "witness-burn incineration" destruction program, according to the news report, rather than shredding confidential information. The material is burned at a facility in Niagara Falls, N.Y., with the option of using other incinerators closer to Syracuse.
Knight says the process is used by police agencies to destroy confiscated materials and is sometimes preferred by law and accounting firms municipal governments and banks.
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