For
Release:
April 16, 2004
FTC Seeks
Comments on Proposed Consumer Information and Records Disposal
Regulation
The Federal Trade Commission is seeking
public comment on a proposed rule regarding the proper disposal
of consumer report information and records under the Fair
and Accurate Credit Transactions Act (FACTA) and the Fair
Credit Reporting Act (FCRA). FACTA, which was enacted on December
4, 2003, amends the FCRA and directs the FTC, the Federal
Reserve Board, the Office of the Comptroller of the Currency,
the Federal Deposit Insurance Corporation, the Office of Thrift
Supervision, the National Credit Union Administration, and
the Securities and Exchange Commission to coordinate with
one another to adopt comparable and consistent rules regarding
the disposal of sensitive consumer report information. Comments
on the proposed rule must be received on or before June 15,
2004. At the close of the comment period, the Commission will
review the comments, modify the proposed rule as appropriate,
and issue the rule as final.
The proposed Disposal Rule’s purpose
is to reduce the risk of consumer fraud, including identity
theft, created by improper disposal of any record that is,
or is derived from, a consumer report. To further this objective,
the proposed Rule requires that any person that possesses
or maintains covered consumer information “take reasonable
measures to protect against unauthorized access to or use
of the information in connection with its disposal.”
The proposed standard for disposal is flexible to allow covered
persons to make decisions appropriate to their particular
circumstances. The FTC expects that entities subject to the
proposed Rule will make decisions about what measures are
reasonable based on the sensitivity of the information at
issue, the costs and benefits of different disposal methods,
and relevant technological changes. The proposed Rule’s
flexible standard also is intended to minimize the burden
of compliance for smaller entities. Additionally, the proposed
Rule includes specific examples of disposal measures that
would satisfy the standards set out in the Rule.
The Commission is seeking comment on all
aspects of the proposed rule. Specifically, the FTC invites
comment on: (1) the costs and benefits of the proposed standard;
(2) the costs and benefits of any alternative standards; (3)
the appropriateness and usefulness of providing examples in
the Rule of reasonable record disposal measures; and (4) the
merits of the examples included in the Federal Register notice,
as well as any other standards or examples that the Commission
might consider to provide guidance on appropriate record disposal.
Comments can be filed electronically at
http://www.regulations.gov. Commentors should select “Federal
Trade Commission” at “Search for Open Regulations,”
locate the summary of the notice, click on “Submit a
Comment on this Regulation,” and complete the form.
Written comments should refer to “The FACT Act Disposal
Rule, R-411007 ” on both the envelope and the text,
and should be mailed to the following address: Federal Trade
Commission/Office of the Secretary, Room H-159 (Annex H),
600 Pennsylvania Avenue, N.W., Washington, DC 20580. Comments
containing confidential material must be filed in paper form.
Due to heightened security precautions, the FTC requests that
any paper comments be sent by courier or overnight service,
as U.S. postal mail is subject to delay. Written comments
must be received on or before June 15, 2004.
The Commission vote approving
publication of the Federal Register notice was 5-0.
Copies
of the Federal Register Notice are available from the FTC’s
Web site at http://www.ftc.gov
and also from the FTC’s Consumer Response Center, Room
130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580.
The FTC works for the consumer to prevent fraudulent, deceptive,
and unfair business practices in the marketplace and to provide
information to help consumers spot, stop, and avoid them.
To file a complaint, or to get free information on any of
150 consumer topics, call toll-free, 1-877-FTC-HELP (1 877-382-4357),
or use the complaint form at http://www.ftc.gov.
The FTC enters Internet, telemarketing, identity theft, and
other fraud-related complaints into Consumer Sentinel, a secure,
online database available to hundreds of civil and criminal
law enforcement agencies in the U.S. and abroad.
MEDIA CONTACT:
Jen Schwartzman
Office of Public Affairs
202-326-2674
STAFF CONTACT:
Ellen Finn or Jessica Rich
Bureau of Consumer Protection
202-326-3224
(FTC File No. R411007)
(http://www.ftc.gov/opa/2004/04/factafrn.htm)
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Related Documents:
16 C.F.R. Part 682: Disposal of
Consumer Report Information and Records, Pursuant to the Fair
and Accurate Credit Transactions Act of 2003: Notice of Proposed
Rulemaking and Request for Public Comment.
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Text
of the Federal Register Notice
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