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The FTC's Document Disposal Rule: It Applies to You
All businesses, large or small, that use consumer reports must “properly" dispose of this sensitive information. This rule also applies to individuals who use consumer reports for business purposes. Proper disposal of consumer report information is required by recent amendments to the Federal Fair Credit Reporting Act (FCRA). Details are spelled out in regulations adopted by the Federal Trade Commission (FTC).

Briefly—disposing of these records in a trash can is no longer just a reckless business practice, it's illegal. Although the "Disposal Rule" covers only a specific kind of sensitive data – information in or derived from consumer reports – the new rule could affect millions. The rule applies to information on paper, computer or any other format. Note that the rule does not require specific measures for disposal, rather it requires “reasonable” disposal measures, so the end result is that personal information is unreadable or incapable of being reconstructed.

Who must comply with the "Disposal Rule"?

Small business owners that conduct criminal background checks on prospective employees.
Homeowners who obtain a credit report on a prospective household employee.
Landlords who obtain a tenant history report on prospective tenants.
Automobile dealers.
Private investigators.
Businesses that dispose of information for other businesses.

For more information, read - the FTC Business Alert - Disposing of Consumer Report Information? New Rule Tells How

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