New ID Theft Law Effects Small Business, could bring state and federal fines as well as lawsuits from individuals.

New ID Theft Law Effects
Small Business

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Law on ID theft catches small businesses unaware Data disposal rules take effect June 1

Small-business owners will soon have to clean up their trash.

Merely tossing out certain types of confidential information about employees and clients could bring state and federal fines as well as lawsuits from individuals.

Any material from a consumer report -- such as personal information in credit reports and background checks -- must be destroyed before it hits the garbage, according to a federal law that takes effect June 1.

Many small businesses aren't aware of the law. In fact, of about a dozen small-business owners contacted in the Louisville area, none of them knew of it.

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