What does the FACT Act require businesses to do with consumer information?

The FACT Act, or Fair and Accurate Credit Transactions Act, emphasizes the importance of protecting consumer information and preventing identity theft. One of its core requirements is that businesses must truncate sensitive information, particularly on documents that contain personal data, such as credit card receipts. Truncating refers to the practice of partially obscuring sensitive details, like credit card numbers, to safeguard consumers' private information from being exposed and misused. This aligns with the act's broader goal of enhancing the security of consumer data in the credit reporting industry.

In contrast, the other options do not specifically relate to the main requirements of the FACT Act. Reporting income levels as a blanket requirement is not stipulated in the act. While providing free credit scores is a service that some entities might implement, it is not mandated by the FACT Act. Maintaining detailed transaction histories, although important for businesses, does not directly address consumer protection or the need to truncate information as required by the FACT Act. Therefore, the requirement to truncate sensitive information stands out as the correct answer in this context.