Privacy Laws, Data Destruction and New Opportunity

Many large and small business owners aren’t aware that the Federal Trade Commission's Fair and Accurate Credit Transactions Act (FACTA) Disposal Rule requires them to dispose of consumer information in a way that prevents anyone from reconstructing the data. Many state governments have also enacted new legislation to protect consumers’ personal information. A new study by information protection vendor Iron Mountain highlights reasons that companies will be paying closer attention to privacy laws. As a result, opportunities exist for document shredding businesses and manufacturers and retailers of document shredding hardware.

  • Some companies believe the FTC is not enforcing its legislation, however the group recently fined an Illinois mortgage broker $50,000 for breach.
  • About 1/​3 of company owners have increased the budget devoted to handling document destruction.
  • New legislation effective November 1, 2008 requires financial institutions to prove they have a program in place to prevent identity theft.

Discuss these trends with your clients and develop an ad campaign that both educates and sells.

[Source: Iron Mountain Press Release, July 7, 2008] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.