Certified Information Privacy Professional (CIPP) Practice Questions

The Fair and Accurate Credit Transactions Act (FACTA) specifically addresses the disposal of consumer report information, establishing standards for how such data should be handled to prevent identity theft and ensure consumer privacy. Under FACTA, organizations are required to implement reasonable measures to protect against unauthorized access to or use of consumer information when disposing of it. This law essentially mandates that businesses and entities that handle consumer reports ensure that information is destroyed in a way that is irretrievably rendered unreadable and unusable.

This legislation highlights the importance of safeguarding consumer data, particularly in an era where identity theft is a significant concern. By implementing disposal standards, FACTA aims to mitigate risks associated with improper or negligent disposal practices which could lead to information being accessed by unauthorized individuals.

In contrast, the other laws mentioned do not specifically focus on the disposal of consumer report information, although they do cover various aspects of data privacy and consumer protection in different contexts. HIPAA is primarily concerned with the privacy and security of health information, the GLBA deals with the protection of consumers' personal financial information, and the Sarbanes-Oxley Act focuses on corporate accountability and financial disclosures, not directly addressing consumer report disposal.