Disposal Rule
CIPP/US glossary · Last reviewed: · By Victor Humenhuk (CIPP/US certified)
Disposal Rule - FACTA rule requiring any entity using a consumer report for a business purpose to dispose of the information in a way that reasonably prevents unauthorized access and misuse.
In the CIPP/US body of knowledge, Disposal Rule comes up under Chapter 9: Financial Privacy.
Disposal Rule in context
- Companies remain responsible for vendor actions and must use contract protections (confidentiality, no further use, subcontractor flow-down, breach notice, security, end-of-relationship data handling) and due diligence (reputation, finances, ==SOC 2==, disposal per ==FACTA Disposal Rule==). (Vendor and Third-Party Risk Assessments)
- No across-the-board federal law exists, but sectoral rules apply - e.g., the ==FTC Disposal Rule== for consumer reports. (State Data Destruction Laws)
- It required ==truncation== of card numbers on receipts, gave a ==free annual report== from each of the three national bureaus, and mandated the ==Disposal Rule== and ==Red Flags Rule==. (FACTA Amendments and Consumer Protections)
Where Disposal Rule is covered in the CIPP/US study notes
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