Additional rules and rules clarification from federal government agencies should combine to keep information destruction firms busy, attendees of the National Association for Information Destruction (NAID) Annual Conference learned.
Several sessions at the Phoenix-based trade group’s Annual Conference, held in San Diego in mid-May, outlined emerging rules covering the proper destruction of individual consumer, borrower and patient information.
With identity theft crimes rampant, federal agencies that oversee several industries are shoring up their rules covering information handling and destruction. A session covering government opportunities pointed to the Federal Trade Commission’s 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.”
The agency is currently seeking comments on the rule, after having formulated in part based on input from NAID staff members and board directors.
According to an FTC news release, 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.
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.”
Companies affected by the rule could include not only lending, credit reporting and debt collection companies, but also retailers who handle the credit reports of individuals.
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.”
NAID government affairs session panel member Quinn Hudson of GCI Group Atlanta told session attendees that opportunities stemming from the FACTA rule show why information destruction professionals must stay in touch with government activities. “If you’re in business and you’re not involved in public affairs, you probably shouldn’t be in business,” he remarked.
In a separate session, M. Jayson Meyer of WorkSmart MD Inc., Daytona Beach, Fla., informed attendees that the Health Insurance Portability and Accountability Act of 1996 (HIPAA) remains a source of potential work.
HIPAA deadlines are beginning to take effect that will compare medical practices and other entities that handle medical records to guarantee the proper disposal of such records.
“Integrating HIPAA into your marketing plans can provide you with a competitive advantage,” said Meyer. “By being educated on the subject, you can be ahead of both customers and competitors on the topic.”