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FACTA

Fair and Accurate Credit Transaction Act (FACTA) is a wide sweeping consumer rights bill designed to reduce the risk of consumer fraud and identity theft created by the improper disposal of consumer information.
The Federal Trade Commission (FTC) has issued their FACTA DISPOSAL RULE. The FACTA disposal rule applies to EVERY business or individual subject to their jurisdiction, which includes virtually every person and business in the U.S..

A ruling issued in November 2004 from FACTA addresses the disposal of consumer information -- name, address, SSN, credit information and data complied from the information.
According to FTC's FACTA Disposal Rule, "any person who maintains or otherwise possesses consumer information for a business purpose" must properly destroy discarded consumer information. The FACTA disposal rule further states that any person and/or business, "must properly dispose of such information by taking reasonable measures to protect against unauthorized access to or use of the information connection with it's disposal."

Reasonable Measures
  are defined by FACTA as " burning, pulverizing, or shredding of papers containing consumer information," or entering into " a contract with another party engaged in the business of record destruction to dispose of material, specifically identified as consumer information, in a manner consistent with this rule."

FACTA VIOLATIONS:

If found noncompliant with FACTA, you could be vulnerable to severe fines and subject to class-action law suits, including:
• Civil Liability: Consumers may be entitled to actual damages sustained as a result of violation to the rule and statutory damages up to $1000 per employee.
• Class-Action Lawsuits: If a large number of employees are affected, they may be able to file a class action lawsuit and receive punitive damages from employers.
• Federal Fines: Up to $2500 in penalties for each violation.
• State Fines: Up to $1000 for each violation.

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