The Problem

The Problem

Many organizations are aware they have risks, but few have a good understanding of the legal, regulatory and potentially damaging consequences of improperly managing those risks. And even fewer have implemented the best practices for eliminating those risks. Following is a summary of the key risks and an introduction to the solution.

IT and Electronic Equipment

IT and electronic equipment contain components which are hazardous and toxic to human health and the environment. Proper recycling and disposal are critical for legal compliance as well as for environmental stewardship. It’s nearly impossible for most companies to understand how every law may apply to them – that’s why it’s important to work with someone who is an expert at compliance and can take that burden on themselves.

Data Security

Whether you’re a small business, a large corporation, or a government institution, you have an obligation to protect the data of your customers, employees and stakeholders. Following are a few situations which may apply to you, depending on your organization’s activities:

• Gramm-Leach Bliley Act (GLBA) – federal law requiring financial institutions to protect data, among other things. Fines of $100,000 per violation.
• Sarbanes-Oxley Act (SOX) – federal law requiring all public corporations to adhere to proper accounting and governance, which can include protecting your assets as well as those of your stakeholders. Fines of $5,000,000 per violation.
• Health Insurance Portability and Accountability Act (HIPAA) and its companion Health Information Technology for Economic and Clinical Health Act (HITECH) – federal laws requiring all healthcare providers, and those with access to personal health information (PHI), to protect that information. Fines of $1,500,000 per violation.
• Fair and Accurate Credit Transactions Act (FACTA) – federal law requiring those with access to financial information and credit card transactions to protect the personal information. This could apply to banks, merchants, etc. Fines of $2,500 per violation.
• Family Educational Rights and Privacy Act (FERPA) – federal law requiring education institutions to protect the personal information of students. Fines of $1,500,000 per violation.
• General Data Protection Regulation (GDPR) – European law requiring those doing business in or with people in Europe (so it applies to U.S. organizations who do so to protect consumers’ private information. Fines of €20,000,000 or 4% of annual revenue.
• State laws are proliferating as well – here are a few: doing business in California or with California residents. Fines of $25,000 per violation.
  • California Consumer Privacy Act (CCPA) – applies to companies
  • Colorado Privacy Act and Colorado Consumer Protection Act – Fines of $20,000 per violation.
  • Connecticut Act Concerning Personal Data Privacy and Online Monitoring and Connecticut Unfair Trade Practices Act – Fines of $5,000 per violation.
  • Utah Consumer Privacy Act – Fines of $7,500 per violation
  • Virginia Consumer Data Protection Act – Fines of $7,500 per violation

Monitoring and Protection

In addition to the legal/regulatory concerns above, organizations are frequently held liable for ongoing consumer monitoring and protection. This can be quite expensive, but the biggest impact of a data breach is to the company’s brand. Loss of customer confidence due to mishandling of data can massively devalue a company.

As IT equipment is removed from service, a plan for protecting the data on that equipment is paramount. Omega Recycling Solutions has the capabilities to securely erase data on equipment, as well as to completely destroy the data-bearing components if necessary. And Omega’s security and processes have been certified by independent third parties to provide assurance of best practices.

Environmental Risks

IT and electronic equipment contain components which are hazardous and toxic to human health and the environment. Proper recycling and disposal are critical for legal compliance as well as stewardship. There are many regulations which may apply to your organization, depending on the equipment you’re retiring, your location or your activities:

• Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
• Resource Conservation and Recovery Act (RCRA)
• State Laws — 26 states (and counting) have laws in place to prevent improper recycling or disposal of electronics
• International Laws — basel convention, trade agreements and importing countries’ laws

The Solution

But beyond the risks, there is also opportunity for doing good. By properly reusing or recycling equipment, you can reduce greenhouse gas emissions, water emissions, raw material mining and refining operations, and other damaging activities. These beneficial impacts can be quantified and included in your organization’s sustainability reporting and goal achievement.

However, at its root, the burden of environmental compliance and stewardship is yours to bear. And improper disposal can result in massive fines and even worse – negative perceptions of your company. No one wants to be in the press for dumping toxic materials.

That’s why Omega Recycling Solutions has invested in best practice processes for extending the life of usable equipment, completely recycling the materials in non-usable equipment, and adhering to a strict zero-landfill policy. And these processes have been rigorously audited by independent third parties certifying that Omega is not just saying we are doing these things – we can prove it!