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Why Shred Laws

Responsible businesses and consumers do not allow sensitive information to end up in the common waste bin. By visiting Document Demolition in Chino, California, today, you've demonstrated you understand this to be true.

Nearly one in 20 Americans will become the victim of identity theft, a crime so pervasive that federal and California state legislation has been enacted to protect the public. Regardless of the size of your business, you have a legal obligation to protect consumer information, whether it's financial, medical, or personal. Violation of these obligations can carry heavy penalties and, if publicized, can have a detrimental impact on the reputation of the good name you've worked so hard to develop and protect.

Secure Document Collection & Shredding Makes Sense to:

• Protect intellectual property or anything you don't want to end up in the hands of a competitor.
• Reduce liability and potential document security breaches.
• Obtain third-party evidence of regulatory compliance via a certificate of destruction.
• Aide your compliance effort by providing employees with an easily accessible and consistent protocol for collecting documents.
• Keep employees focused on their core responsibilities, increasing efficiency and reducing expenses.
• Eliminate the noise, mess, and inconvenience of unreliable, low-capacity office or home shredding equipment.
• Increase efficient utilization of office space.


Legislation

The Federal Trade Commission (FTC) has issued a publication, "Disposing of Consumer Report Information? New Rule Tells How," available at the FTC's website, to educate businesses about requirements.

We encourage you to become familiar with legislation requiring consumer document protection by visiting the FTC's website for additional information on:

Fair And Accurate Credit Transaction Act (FACTA) Disposal Rule
The FACTA Rule requires disposal practices that are reasonable and appropriate to prevent the unauthorized access to, or use of, information in a consumer report. For example, reasonable measures for disposing of consumer report information could include establishing and complying with policies to: "burn, pulverize, or shred papers containing consumer report information so that the information cannot be read or reconstructed."

Red Flags Rule
The Red Flags Rule requires many businesses and organizations to implement a written identity theft prevention program designed to detect the warning signs or "red flags" of identity theft in their day-to-day operations, including the destruction of consumer information.

Gramm-Leach-Bliley Act
The Gramm-Leach-Bliley Act requires financial institutions (companies that offer consumers financial products or services such as loans, financial or investment advice, or insurance) to explain their information-sharing practices to their customers and to safeguard sensitive data.

The Health Insurance Portability and Accountability Act of 1996 (HIPAA) - Privacy & Security Rules
Learn about the protection of individually identifiable health information, the rights granted to individuals, and protecting this vital data.

Note: These are just a few of the many regulations your company should be aware of and comply with, and are provided as a reference only. Please consult with your legal counsel, small business administration professional, or other consumer privacy experts for guidance on the laws and regulations that apply to your business.