Page 46 - GIADA-Dec 2017-Final

LEGAL

Continued from page 42 information derived from a consumer report can either contact me directly or wait for
other reason(s) you need to make sure that is flexible and allows the organizations a future article if you want details on the
you dispose of the records appropriately. To and individuals covered by the Rule to disposal rule as that is an article in and of
protect the privacy of consumer information determine what measures are reasonable itself.
and reduce the risk of fraud and identity based on the sensitivity of the information,
theft, a federal rule requires businesses the costs and benefits of different disposal With all that in mind, you should likely
to take appropriate measures to dispose methods, and changes in technology. retain your records for at least ten years or
of sensitive information derived from Although the Disposal Rule applies to maybe to eternity. When you maintain your
consumer reports. consumer reports and the information records do not forget you must safeguard all
derived from consumer reports, the FTC the personal information. Once you decide
Any business or individual who uses a encourages those who dispose of any to dispose of the documents, you must
consumer report for a business purpose is records containing a consumer's personal follow the disposal guidelines. Following
subject to the requirements of the Disposal or financial information to take similar a policy and the necessary guidelines are
Rule. That means you if you are a car dealer! protective measures. The FTC emphasizes all part of being a good dealer, protecting
The Rule requires the proper disposal that financial institutions that are subject your dealership, your investment, your
of information in consumer reports and to both the Disposal Rule and the Gramm- customers and ultimately limiting your
records to protect against "unauthorized Leach-Bliley (GLB) Safeguard Rule should exposure to issues and legal liability. This
access to or use of the information." The incorporate practices dealing with the article is not legal advice, and it does not
Federal Trade Commission, the nation's proper disposal of consumer information create any client, advisory, fiduciary or
consumer protection agency, enforces into the information security program that other professional relationship, BUT if you
the Disposal Rule. According to the FTC, the Safeguards Rule requires and that means would like specific counsel, please email us at
the standard for the proper disposal of that you are likely subject to the rule(s). You eric.gregory@thegregorylawgroup.com. n

44 | GIADA Independent Auto Dealer DECEMBER 2017