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Automobile Dealers Disposal Rule Compliance

Automobile Dealers Disposal Rule Compliance

Protecting the consumer’s personal information has become a priority. As identity theft continues to rise businesses are under more scrutiny than ever before to comply with the laws that have been established for consumer information privacy. Automotive dealers are just one of many types of companies that use consumer reports to accommodate a vehicle purchase or lease. The FTC (Federal Trade Commission) is the consumer protection agency in the country that enforces the “Disposal Rule” for businesses or individuals that make use of a consumer report for the purpose of their business. Compliance with the Disposal Rule involves proper disposal of information that comes from a consumer report. This confidential information and care must be taken in the handling, storage, and ultimate disposal of all documents and digital formats so that it cannot be accessed and to protect against “unauthorized access to or use of the information.” 

Identifying “Proper Disposal”

For today’s automotive dealerships, much of the personal information collected for a customer can be on both paper and digital. Ensuring complete destruction of either format should involve contracting with a licensed and certified waste disposal company such as Healthcare Waste Management to analyze the exact needs and take actions for destruction according to type. The federal government describes compliance of “proper disposal” as to actions to:

What Information is Included in the Disposal Rule?

Any business or individual that makes use of consumer reports for the purpose of their business will collect information that is based on or derived from the reports. All of this information is considered to be part of the Disposal Rule and must be properly disposed of. This data can include such things as but not limited to credit reports and scores, insurance information, insurance claims, banking or financial data, employment history, and income.

Automotive Dealership Responsibilities for Disposal Rule

Hiring a licensed, trained, and certified waste disposal company such as Healthcare Waste Management gives an automotive dealership the opportunity to have both paper and digital information destroyed for compliance with the Disposal Rule. Trained drivers will arrive at designated times and locations to pickup and shred/destroy all sensitive documents and digital formats. A certification of destruction is supplied to the dealership so that they can prove compliance. This certification is useful in case of audit or for legal situations.


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