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Document shredding: Laws

June 16, 2011


Did you know that there are laws applicable to various industries that require them to securely destroy their client’s documents and files? Because of the emerging concern from various people who had serious horrible experiences of identity theft, the government took the initiative, requiring agencies and businesses to destroy confidential files in the securest manner possible. This is how the document shredding Toronto business came into picture. Identity theft is a serious issue. And companies and agencies where files were stolen are held liable for the lost or the leakage of personal information.

The Health Insurance Portability and Accessibility act (HIPPA) is a law that holds medical care companies liable for the proper destruction of documents and files of sensitive information about their patients. If the medical care companies fail to meet this, they will be held for multiple administrative lawsuits and will be charged with high fines. This law ensures the confidentiality of patient’s records.

The Gramm-Leach-Bliley Act on the other hand, is an act that protects people’s financial information. Banks and other financial institutions such as insurance companies must provide highly secured programs that will protect their client’s financial information. This includes proper disposal of any document that contains highly confidential information.

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