Skip Navigation
 
   

Stars May be aligning for the Next Wave of Demand Increase

Bookmark and Share

It turns out that one of NAID’s 2007 marketing initiatives, providing members with well-researched, comprehensive destruction policies and procedures as a door-opener to prospective clients, may fit in very nicely with the FTC’s pending amendment to FACTA.

The amendment, known as the Red Flag Rule, reportedly could require organizations to identify in writing all areas of their operation where personal information is at risk and require them to produce a written procedure for limiting that risk. Since information disposal is a risk for all organizations, it would have to be addressed almost universally. With the NAID initiative already in development, members will be armed and ready, precisely at the time many prospects will be looking for help.

Of course, no one outside of the FTC will have any specifics until the Red Flag Rule is released, which could be anywhere from 3 months to 9 months. NAID has also just learned that the amendment will be final when it is released, although it is very likely that it will allow some time before the effective date.

Obviously, the release of the Red Flag amendment to FACTA dovetails very nicely with NAID’s strategy, which originally emerged prior to this announcement by the FTC. The original idea for this initiative came from the NAID Consumer Survey, which clearly showed that organizations with written destruction procedure were more likely to use a destruction service than those that did not have a written procedure. Further, the survey showed that the vast majority of prospects lack such written destruction procedures.

Why is the FTC already tampering with FACTA? Simple, in the absence of increased data protection legislation at the federal level, it will fight the battle with the tools it already has.