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Dreher Tomkies LLP
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2750 Huntington Center
41 South High Street
Columbus, Ohio 43215
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FTC SEEKS COMMENTS ON PROPOSED CONSUMER INFORMATION DISPOSAL REGULATION

The FTC has issued a proposed rule under the FACTA and the FCRA regarding the disposal of sensitive consumer report information.

The FTC proposed rule requires that any person that possesses or maintains consumer information that is or is derived from a consumer report take reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal. The proposed rule then provides examples of reasonable measures, including:

  • Requiring the burning, pulverizing or shredding of papers containing consumer information so that the information cannot practicably be read or reconstructed;
  • Requiring the destruction or erasure of electronic media containing consumer information so that the information cannot practicably be read or reconstructed.

The FTC indicated that the proposed rule provides for flexible standards for disposal to allow covered persons to make decisions appropriate to their particular circumstances, to minimize the disruption of existing practices to the extent that they already provide appropriate protections for consumers and to minimize the burden of compliance for smaller entities.

The FTC invites public comments on the proposed rule on or before June 15, 2004.

Elizabeth Anstaett