(FACTA) FAIR AND ACCURATE FEDERAL TRANSACTIONS ACT
The new regulation was in effect on June 1, 2005. The (FTC) Federal Trade Commission issued the new regulation requiring any person who maintains or possesses consumer records for business purposes must properly dispose of the information. Examples include paper and/or electronic credit reports, court records, employment histories, rental histories, to mention only a few.

The new rule has set forth examples of requirements for its compliance:

• Implementing and monitoring compliance with policies and procedures that require shredding or other forms of destruction of documents and electronic media containing consumer information.
• Contracting with a third party to properly dispose of consumer information and monitoring their performance.

The FTC penalty provisions call for a fine up to $2,500 per violation of this new regulation. Individuals that have information misused can also personally seek damages in civil lawsuits. This is virtually the first national shred law.